Operation Manual

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SOCIAL ISLAMI BANK LTD.HEAD OFFICE

15, DILKUSHA C/A, DHAKA-1000PREFACE

The Manual of the Bank on General Banking Operations is prepared for the Guidance of the In-charges/Managers and Officers at the Branches, Regional Offices & Head Office. It shall apply to all the branches of Social Investment Bank Ltd in Bangladesh.

It was felt essential to prepare a Manual for guidance and follow up the principles and practices of Banking Operations uniformly by all the Branches, Regional Office as well as the different Divisions/Departments of Head Office. In line with the Guidelines of ICC Manual this Manual has been prepared with the following objectives:

i. Provide extensive guideline on the routine procedure on General Banking Operations.ii. Strict adherence to the rules and orders in exercise of the power delegated by the Management.iii. Adopt simple and straightforward working methods.iv. Establish uniformity of practices among the branches.v. Ensure accuracy & efficiency.vi. To prevent occurrence of any fraud-forgery, negligence in duty and major lapses invii. Banking Operations.viii. To propagate the messages (Shariah Principles) of Islamic Banking and to ensure

compliance of the same in General Banking as well as in all operations of the Bank.

All the Executives, Officers including the Branch In-charges/Managers must keep themselves fully conversant with its contents which are strictly private and confidential and must not in any way be divulged to any person not in the services of the Bank. All the copies of the Manual must be kept in the possession of the Branch In-charge/Manager or the 2nd Officer but other Officers may have access to them.

The fundamental principal laid down in the Manual is for the protection of the Bank’s interest and must be observed strictly. The Branch In-charges/Managers and Officers will also be guided by circulars issued by Head Office from time to time in addition to the instructions contained in this Manual. However, suggestions for making further improvements and also to add new scheme, if any, will be welcomed and shall be implemented, if found feasible, after careful study.

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SOCIAL INVESTMENT BANK LTD.HEAD OFFICE 15, DILKUSHA C/A, DHAKA.

INDEX PLAN OF THE CONTENTS

SerialNos.

ChapterNumbers

Title of the Chapters Running PagesFrom To

01. Chapter - I Social Investment Bank Limited (SIBL)- An Overview.

02. Chapter - II Personnel Administration03 Chapter - III General Functions and House Keeping of the Branch

Incumbents:04. Chapter – IV LEAVE

The following kinds of leave may be granted to an employee:

05. Chapter -V Traveling Allowance Rules06. Chapter -VI Correspondence, Receipt and Dispatch

07. Chapter -VII General Services Department (GSD)

08. Chapter -VIII Prevention Money Laundering Act-2002

09. Chapter -IX Contituents’ Accounts:General Instruction

10. Chapter -X Al-Wadeeah Current Account (AWCD)

11. Chapter -XI Mudaraba Savings Deposit (MSD) Account

12. Chapter -XII Mudaraba Notice Deposit (MND) Account:

13. Chapter -XIII Rules Governing Mudaraba Term Deposit (MTDR)

14. Chapter -XIV Rules of Cash Waqf Account

15 Chapter -XV Rules set For MMPDR

16. Chapter -XVI Rules set for Hajj/Umrah Savings Deposit :

17. Chapter -XVII Rules set for Mudaraba Pension Savings Scheme (MPSS):

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18 Chapter -XVIII

Rules set for Mudaraba Monthly Termed Saving Scheme

19 Chapter -IX Mudaraba Education Savings Scheme

20. Chapter -XX Rules set for Bashtan Saving Scheme:

21 Chapter -XXI

Rules Set for Mudaraba Millioniare Scheme

22. Chapter -XXII

Rules set for Mudaraba Lakhopoti Deposit Scheme

23. Chapter -XXIII

Rules set for Mudaraba Double Benefit Scheme

24 Chapter -XXIV

set Rules for Mudaraba Marriage Savings Account

25. Chapter -XXV

Rules set for Mudaraba Muhor Savings Account

26. Chapter -XXVI

Cash Management, Maintenance ofKeys and Security measures

27. Chapter -XXVII

Locker Service

28. Chapter -XXVIII

Clearing and Collections

29. Chapter -XXIX

Payment Order, Demand Draft, Telegraphic Transfer and Handling of Test Keys

30. Chapter -XXX

Writing of transfer scroll, Clean Cash book and general ledger

31. Chapter -XXXI

Income, Expenditure, Sundry,Suspense and Compensation Accounts

32. Chapter -XXXII

Inter Branch Transaction and Reconciliation

33. Chapter -XXXIII

Account Terminologies and Accounting Procedures used in Social Investment Bank Lltd. (SIBL)

34. Chapter -XXXIV

Online Banking Operation in SIBL

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CHAPTER-I

Social Investment Bank Limited (SIBL)

Introduction:

Social Investment Bank Limited a joint venture Shariah based Bank started operation on the 22nd November 1995. As a corporate objective, SIBL has defined its operation in three different sectors –viz-a-viz Formal Sector, Non-formal Sector & Voluntary Sector, while Formal Sector deals in General Commercial banking activities as a Scheduled Bank, Non-formal Sector aims at “ Empowering Family”- by creating investment opportunities to Micro and SME (s) clients and Voluntary Sector deals in Cash Waqf Certificate Scheme-an innovative financial product towards welfare to the mankind.

Definition of Islamic Bank: The General Secretariat of the Organization of Islamic Conference (OIC) defines Islamic Bank as “a financial institution whose statues, rules and procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of the receipt & payment of interest on any of its operations.”

OUR VISSION:

Social Investment Bank Limited started its journey with the concept of the 21 st Century Islamic Participatory Three-Sector Banking Model:i) Formal Sector-Commercial Banking with latest Technology; ii) Non-Formal Sector-Family Empowerment Micro-Credit & Micro-Enterprise Programiii) Voluntary Sector-Social Capital Mobilization through Cash Waqf and others. “Reduction Of

Poverty Level” is our vision which is a prime object as stated in Memorandum Of Association of the Bank with the commitment “Working Together For A Caring Society”.

OUR MISSION:

High quality financial services with the latest technology. Fast, accurate and satisfactory customer service. Balanced & sustainable growth strategy. Optimum return on shareholders’ equity. Introducing innovative Islamic banking products. Attract and retain high quality human resource. Empowering real poor families and create local income opportunities. Providing support for social benefit organizations-by way of mobilization funds and social services.

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Activities:Social Investment Bank has efficient and experienced human resources for rendering better service to its clients along with modern technology.

Islami Shariah Based Banking Activities of this Bank are as following:

FORMAL SECTOR:

A.Deposit

1. Al-Wadiah Current Deposit Account2. Mudaraba Term Deposit Account3. Mudaraba Notice Deposit Account4. Foreign Currency Account5. Cash-Waqf Deposit Account

Different Schemes Accounts:i) Mudaraba Monthly Profit Deposit Account.ii) Mudaraba Hajj/Umrah Savings Account.iii) Mudaraba Education Savings Deposit Account.iv) Mudaraba Special Savings (Pension) Scheme Account.v) Mudaraba Millionaire Scheme Account.vi) Mudaraba Monthly Savings Based Term Deposit Account.vii) Mudaraba Lakhopoti Deposit Scheme Account.viii) Mudaraba Double benefit Deposit Scheme Account.ix) Mudaraba Foreign Currency Term Deposit Scheme Account.x) Mudaraba Mohor Savings Scheme Accountxi) Mudaraba Marriage Savings Scheme AccountXII). Mudaraba Bashasthan Scheme

B.Investment:

Mudaraba-Trust Finance PartnershipMusharaka-Participation Financing/Equity FinancingMurabaha-Cost Plus SaleBai-Muajjal-Sale under deferred paymentBai-Salam-Forward Purchase

Leasing-The Bank lease out Machineries, Transport, Houses, Ship etc. for an agreed period of time, the company being the legal owner and the lessee having the right to use the property for the duration of the contract.

Direct Investment-The Bank directly invests capital on medium and long-term basis in Industry, Agriculture, Trade, Transport, Immovable property and for construction of house etc.

Hire Purchase-Under hire purchase system of business the bank invests for purchasing durable asset like machineries, equipment, transport, land and building etc. along with the client with the stipulation that the client shall pay off the principal among with rent (at the agreed rate) in installments.

C. Foreign Exchange:

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The bank purchases and sells foreign currencies and carry on business of import through opening of L.C and also financing export business.D. Remittance:The bank remits client’s money both at home and aboard and completes all formalities of remittance in respect of Bangladeshi living abroad and other customers.E. Special Banking Services:In Addition, the Bank: ►Issues Guarantees, ►Provides Safe Deposit Locker service for safe custody►Discharges responsibility as investment trustee►Carries on transactions on client’s behalf►Acts as Banker to the issue on behalf of the companies►Provides consultancy service to the customers►Also provides all other banking services F. Information Technology Services:

As regards to information technology SIBL has uploaded its website which makes easy access in the world of communication –technology. Introduction of Islamic Banking Version Integrated PcBANK2000 software at SIBL enables to provide better service to our valued clients. We facilitate our customers with Online any branch Banking facilities using V-SAT and Radio link connectivity, SWIFT, ATM Debit Card with strict compliance of ICT policy guidelines of Bangladesh Bank.

Non-Formal Sector: Social Investment Bank Limited (SIBL) has been successfully operating Family Empowerment Micro-Credit & Micro-Enterprise program under Non-Formal Banking Sector since the inception of the Bank in 1995. Meanwhile SIBL has become able to create job opportunities among significant numbers of Micro-credit & Micro-enterprise clients under SME(s) financing. Many of those clients could manage to establish them as successful entrepreneurs and graduated them from Micro-Credit to Micro-Enterprise Program.

G. Islamic Voluntary Sector:

In the voluntary sector SIBL has also introduced Cash Waqf Certificate -a new product for the first time in the history of banking.

Cash Waqf Scheme:

Waqf is an Arabic word, the plural of which is Awqaf. It is meant for permanent donation/ endowment of fixed assets made by the effluent and rich people to be used for the welfare of the mankind for obtaining the spiritual benefit and satisfaction/blessing of the Almighty Allah. The waqf properties are converted into income generating units and the income so derived is utilized as per instruction of the Waqif (the persons who made the Waqf) and or on the basis of Islamic Shariah.Many of our ancestors made waqf of their valuable properties for the welfare of the mankind by establishing mosque, madrasha, eidgah, orphanage, graveyard etc.for spiritual attainment.The term Cash Waqf may appear to be new to us. Waqf in the form of cash is called Cash Waqf. Cash Waqf provides a unique opportunity for making investment in different religious, educational and social services. Savings made from earning by the well off and the rich people of the society is utilized in an organized manner in Cash Waqf. Income earned therefrom will be spent for different purposes like the purposes of the Waqf properties itself. The person who made waqf is called Waqif and to whom (persons or institutions) the waqf is made is called beneficiary.

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CHAPTER-II

PERSONNEL ADMINSTRATION

Some related chapters of Social Investment Bank Limited Employees’ Service Rules are quoted herein below for strict and meticulous adherence by all concerned.

14. CONDUCT AND DISCIPLINE

14.1 Every employee shall-(a) strictly conform to and abide by these rules-

(b) observe, comply with and obey all orders and directions which may from time to time, be given by any person or persons under whose jurisdiction, super-intendance or control he/she may,

from time to time, be placed.

(c) serve the Bank honestly and diligently;

(d) use his/her utmost endeavours to promote the interest of the Bank.

(e) show courtesy and attention in all transactions and

(f) maintain strict secrecy regarding the affairs of the bank, including the affairs of its constituents, irrespective of whether the information or documents relating to the Bank come into his/her possession in the course of his/her duties as an employee or otherwise.

(g) shall follow the instructions regarding dress code as specified in Schedule-I of Social Investment Bank Limited Employees’ Service Rules (Part-III) which may be revised by the Competent Authority from time to time.

14.2 No employee shall-(a) accept any outside employment, honorary or stipendiary;

(b) engage in any commercial business, industry or pursuit either on his/her own account or as agent or others;

(c) be connected with the formation or management of joint stock company other-wise than as an agent of the Bank.

(d) act as agent of an insurance company or accept commission, directly or indirectly, other-wise than as an agent for or on behalf of the Bank.;

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Provided that the competent authority may permit an employee in special circumstance to accept an outside work subject to approval of the Board.

14.3 No employee shall absent himself/herself from duty, nor leave the station, without first obtaining the permission of the competent authority in writing. However, in exceptional circumstances verbal permission may be obtained to be followed by written confirmation.

14.4 An employee who desires to make a representation relating to service in the bank shall address the representation to the competent authority through his/her immediate superior.

14.5 No employee shall make any personal representation to any Director of the Board or any outside authority to intervene on his/her behalf in any matter.

14.6 No employee shall -

(a) accept himself/herself or permit any member of his/her family to accept any gift from a constituent of the Bank, any person likely to have dealings with the Bank, a subordinate employee or a candidate for employment in the Bank;

(b) accept, without the previous permission in writing of the Managing Director any gift from a foreign Government/Agencies;

(c) lend money in his/her private capacity to or borrow money from, or place himself under any pecuniary obligation to, a broker, money lender, an employee of the Bank, a candidate for employment in the Bank, or any firm or person having or likely to have dealings with the Bank;

(d) have personal dealings with a constituent in the purchase or sale of bills of exchange, Government paper or any other securities;

(e) buy or sell stocks, shares or securities of any description without funds to meet the full cost in the case of purchase or script for delivery in the case of a sale;

(f) except with the permission of the competent authority guarantee, in his/her private capacity, obligations of another person or agree to indemnify in such capacity another person from loss;

(g) participate in gambling and betting or any other activities contrary to Islamic Shariah.

(h) speculate in investments.

EXPLANATION- For the purpose of clause (h) the habitual purchase and sale of securities of notoriously fluctuating value shall be deemed to be speculation in investment;

(i) make or permit any member of his/her family to make, any investment likely to embarrass or influence him/her in the discharge of his/her official duties;

(j) make any investment the value of which is likely to be affected by some event of which information is not available to the general public;

EXPLANATION- If any question arises whether a security or an investment is of the nature referred to in clauses (h), (i) or (j), the decision of the Bank thereon shall be final. These provisions are not intended to prohibit bonafide investments in stocks and shares by an employee;

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(k) Sublet residential accommodation let or provided to him/her by the Bank;

14.7 An employee may undertake honorary work of religious, social or charitable nature and occasional work of literary or artistic character which may contribute to achieve the corporate objectives of the Bank.

Provided that the duties of the employee do not suffer by such honorary work. Provided further that the Bank may, at any time, forbid an employee to undertake or require him/her to abandon any work, which in its opinion, is undesirable.

14.8 No employee shall live beyond his/her means or indulge in ostentation on occasions of marriage or other ceremonies.

14.9 An employee shall avoid habitual indebtedness.

Explanation - If an employee is adjudged or declared insolvent or if the whole of that portion of his/her salary which is liable to attachment is frequently attach for debt, has been continuously so attached for a period of two years, or is attached for a sum which, in ordinary circumstances, he/she cannot repay within a period of two years, he/she shall be presumed to have contravened sub-rule 14.9 unless he/she proves that the insolvency or indebtedness is the result of circumstances which with the exercise of ordinary diligence, he/she could not have foreseen or over which he/she had no control and has not proceeded from extravagant or dissipated habits.

14.10 An employee who appears to be or is adjudged or declared insolvent shall forthwith report his/her insolvency to the Head of the Office or Department, as the case may be in which he/she is employed.

15. DECLARATION OF ASSETSEvery employee shall, as and when he/she is so required by the Bank by a general or special order, furnish information as to his/her assets disclosing liquid assets and all other properties, movable and immovable, including shares, certificates, insurance policies and jewelry.

16 PROHIBITION FROM TAKING PART IN POLITICS, ELECTIONS ETC. 16.1 No employee shall-

(a) take part directly in any political activity;

(b) take part in any election to parliament or any local authority in Bangladesh or elsewhere;Provided that he/she may exercise his/her right of voting at such election.

(c) propagate such sectarian creeds, or take part in such sectarian controversies or indulge in such sectarian partiality and favoritism, as are likely to affect his/her integrity in the discharge of his/her duties or to embarrass administration or create feelings of discontent or displeasure amongst the employees in particular and amongst the people in general;

(d) indulge in parochialism, favouritism, victimization and willful abuse of office;

(e) unless generally or specially empowered by the Bank in this behalf, disclose directly or indirectly to other employees, to the press or to any other person, the contents of any document or communicate any information relating to the Bank which has come into his/her possession in the course of his/her duties, or has been prepared or collected by him/her in the course of duties, whether from official sources or otherwise;

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(f) give evidence before a public committee-

(i) in Bangladesh, unless he/she has first obtained the permission of the Managing Director or

(ii) outside Bangladesh, unless he/she has first obtained the permission of the Government through the Managing Director.

Explanation- This clause shall not apply to evidence given before a statutory committee with power to compel attendance and the giving of answers, nor to evidence given in judicial inquiries.

16.2 Without the previous sanction of the Bank, have recourse to any court of law or to the press for the vindication of any act done by him/her in the course of his/her duties as employee:

Provided that in granting sanction, the Bank shall ordinarily bear the cost of proceedings or direct the employee to bear his/her own expenses subject to the condition that if he/she obtains a

decision in his/her favour, the Bank may reimburse him/her to the extent of the whole or any part of the cost.

Explanation- Nothing in this clause limits or otherwise affects the legal rights of any employee to vindicate his/her private acts or character.

DISCIPLINARY ACTION:

32. GROUNDS FOR PUNISHMENT32.1 Without prejudice to any other provisions contained in these rules, an employee who in the opinion of the

competent authority- (a) commits a breach of the provisions of these rules, or (b) displays negligence or indolence in the discharge of his/her duties, (c) does anything detrimental to the interest of the Bank, or (d) contravenes instructions issued to him/her in connection with his/her official work, or (e) commits a breach of discipline or is guilty of any other act of misconduct or insubordination,

or(f) is convicted of any offence involving moral turpitude or(g) is inefficient or has ceased to be efficient whether by reasons of infirmity of mind or body; or (h) is corrupt or may reasonably be considered to be corrupt or(i) assumes style of living beyond his/her ostensible means or(j) has a persistent reputation of being corrupt or(k) is engaged or is reasonably suspected of being engaged in subversive activities or is

reasonably suspected of being associated with others engaged in subversive activities and whose retention in service is, therefore, considered prejudicial to national security; or

(l) is in possession of pecuniary resources or property disproportionate to his/her known sources of income.

Shall be liable to one or more of the following penalties, namely :

A. MINOR PUNISHMENTSi) censure;ii) withholding, for a specified period, of promotion or of increment otherwise than for unfitness

for promotion to financial advancement. iii) stoppage for a specified period, at any slab in the pay scale, and

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iv) recovery from pay or any other amount due to the employee of the whole or part of pecuniary loss caused to the employee.

B. MAJOR PUNISHMENTSi) reduction to a lower stage in a scale of pay.ii) reduction to a lower post;iii) compulsory retirement;iv) removal from service;v) dismissal from service;

Explanation- Without prejudice to the generality of the term, "misconduct" includes, for the purpose of these rules, the following acts of omission and commission:-

i) insubordination alone or in combination with others, to any lawful or reasonable order of superior;

ii) theft, fraud or dishonesty in connection with the Bank's business or property;iii) damage to or loss of the Bank's goods or property;iv) habitual late attendance, habitual leaving early for or returning late from lunch break;v) absence from duty without permission;vi) drunkenness, drug- addiction gambling, riotous, disorderly or indecent behavior while on duty.vii) striking, picketing or agitation in any other form within the bank premises and in places where

it is lawfully prohibited;viii) illegal striking of work, singly or with others, in contravention of any law or rule for the time

being in force, or inciting others to strike;ix) holding of meetings within the Bank premises without the previous permission of the

competent authority;x) refusal to work in another job or at any other office or places of the Bank as may be directed

by the competent authority in or outside Bangladesh;xi) habitual indiscipline and leaving of work without permission, disappearance from the seat or

place of work without permission during the duty hours;xii) unauthorized use of the Bank's property;xiii) malingering, slow down of work, undue delay in the discharge of duty, refusal or negligence to

carry out a official order of the superior;xiv) habitual negligence of duty;xv) breach of the Bank's rules, standing orders or instructions;xvi) improper or non-use of uniforms, if supplies, while on duty;xvii)writing anonymous letters, or criticizing the superiors and misbehaving with the superiors;xviii) threatening or intimidating any employee within or outside the Bank premises;xix) sleeping while on duty;

32.2 The power of awarding punishment to the employees shall vest in the competent authority;

Provided that no authority subordinate to that by which the employee was appointed shall be competent to impose on him/her any major punishment.

32.3 An employee against whom disciplinary action is proposed to be taken under sub-rule 32.1 may be placed under suspension if, in the opinion of the competent authority, suspension is necessary or expedient or in the competent authority may, instead of placing such an employee under suspension, by order in writing require him/her to proceed on such leave as may be admissible to him/her from such date as may be specified in the order.

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32.4 While under suspension, an employee shall not leave the headquarters (the place of duty) without prior permission of the authority suspending him/her nor accept any employment, nor engage in any business.

32.5 During the period of suspension, an employee shall be entitled to subsistence grant at the rate of one half of his/her substantive pay, and shall not be entitled to any other facility or benefit except the medical and house rent allowance.

32.6 When the suspension of an employee is held to have been unjustifiable or not wholly justifiable, or when an employee who has been compulsorily retired, removed, dismissed or suspended is reinstated, the punishing, or appellate authority may grant to him/her for the period of his/her absence from duty-

a) if he/she be honourably acquitted, the full pay & allowances to which he/she would have been entitled had he/she not been compulsorily retired, removed, dismissed or suspended.

b) if otherwise, such proportion of such pay and allowances as the punishing or appellate authority may determine.

Explanations:-1. In a case falling under clause (a), the period of absence from duty shall be treated as a period

spent on duty. In a case falling under clause (b) the period may be treated as duty or leave but it shall not be so treated unless the punishing or appellate authority so directs.

2. When, on reinstatement of a suspended employee, the period of suspension is treated as leave, the period shall be debited to his/her leave account. If there is no leave in his/her account the period will be treated as leave without pay. In case of leave other than extraordinary leave, subsistence grant already allowed shall be adjusted against leave salary. When the period of suspension is treated as extraordinary leave, subsistence grant allowed shall not be recovered.

3. The period of absence of an employee on reinstatement in service after wrongful retirement shall be treated as a period spent on duty and he/she shall be entitled to pay and allowances as admissible under clause (a).

32.7 Where it is decided to proceed against an employee on the ground of inefficiency by reason of infirmity of mind or body, the competent authority may, at any time, require the employee to undergo medical examination by a physician or a Medical Board, as may be specified and the report of the physician or the Medical Board shall form part of the proceedings against the employee.

32.8 If an employee refuses to under go medical examination under sub-rule 32.7, his/her evasion or refusal may subject to the consideration of any grounds he/ she may give in support of it, be taken into consideration against him/her as showing that he / she had reason to believe that the result of the Examination would prove unfavourable to him/ her.

32.9 No order awarding a major penalty shall be passed without the charge or charges against the employee being framed in writing and given to the said employee so that he/she shall have reasonable opportunity within a period of seven days to answer in writing or in person as he/ she prefers, and in the latter case his/her defense shall be taken down in writing and read out to him/ her.Provided that the requirements of this sub-rule shall not apply if the facts on the basis of which action is to be taken have been established in a court of law or where the employee is absenting or absconding or where it is for other reasons impracticable to communicate with him/her or where there is a difficulty in observing the requirements, and these may be waived without injustice to the

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employee and in all cases where the requirements of this sub-rule are waived the reason for doing so shall be recorded in writing.

Provided further that in a case where an offence of misconduct is detected in the course of its commission or is so fresh and its circumstances are so clear that to serve the employee concerned with charges is pure pretentiousness, it will be just compliance with this sub-rule if the competent authority demands immediate explanation and issues order describing the offence as misconduct and awards punishment.

32.10 When an employee is to be proceeded against under sub-rule 32.1 and the competent authority or such officer as may be empowered by it is of opinion that the allegations, if established, could call for a minor penalty the competent authority or the officer as the case may be, shall-

(a) make the allegations against him/her known to the accused in writing and call upon him/her to explain his/her conduct within a specified time which shall not be less than seven days nor more than fourteen days, and

(b) consider the explanation of the accused, if any, submitted within the specified time and after giving him/her an opportunity of being heard in person, may award any of the minor penalties, specified in sub-rule 32.1(A). Provided that the competent authority or the officer as the case may be, may, in suitable cases, appoint an officer senior in rank to the accused to inquire into the allegations and submit his/her findings within a specified time for the consideration of the competent authority or, as the case may be the officer before passing the final order in the case.

32.11 When an employee is to be proceeded against under sub rule 32.1 and the competent authority is of opinion that the allegations, if established, would call for a major penalty, the following procedure shall be observed, namely:

a) The competent authority shall-i) frame a charge and specify therein the penalty proposed to be imposed communicate it to the

employee (hereinafter called the accused) together with a statement of the allegations on which it is based and of any other circumstances which the competent authority proposes to take into consideration when passing orders on the case; and

ii) require the accused to submit within seven days from the day the charge has been communicated to him/her a written statement of his/her defence and to show cause at the same time why the punishment proposed to be imposed on him/her should not be imposed and also state whether he/she desires to be heard in person.

b) If the accused so desires, or if the competent authority so directs, an Inquiry Officer or a Enquiry Committee to be appointed under sub-rule 32.13 shall hold an inquiry at which oral evidence shall be heard as to such of the allegations as are not admitted and documentary evidence relevant or material in regard to the charge shall be considered. The accused shall be entitled to cross- examine the witnesses against him/her to give evidence in person and to have such witness called for the defence as he/she may wish. The person presenting the case in support of the charge shall be entitled to cross-examine the accused and the witnesses examined in his/her defence;

Provided that the Inquiry Officer or the Inquiry Committee may, for reasons to be recorded in writing refuse to call a particular witness or to summon or admit particular evidence.

c) The competent authority may nominate any person to present the case in support of the charge before the Inquiry Officer or the Inquiry Committee.

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d) The proceedings of an inquiry under this rule shall contain a sufficient record of the evidence and where an Inquiry Officer or an Inquiry Committee is appointed, also the report of the findings of such officer or the Inquiry Committee and the grounds thereof.

e) The competent authority or, in cases where the Board is the competent authority, the Managing Director having considered the report and arrived at a provisional conclusion in regard to the penalty to be proposed the accused shall, if the penalty proposed in any of the major penalties, be supplies with a copy of the report and asked to show cause within a specified time, which shall not ordinarily exceed one month, against the particular punishment proposed to be inflicted; and any representation submitted by the accused in this behalf shall be taken into consideration by competent authority before passing final orders.

32.12 Nothing in sub-rule 32.10 or 32.11 shall apply to a case-

a) Where the accused is dismissed or removed from service or reduced in rank on the ground of conduct which has led to his/her conviction of a criminal charge; or

b) Where the competent authority dismisses or removes the accused from service or reduces him/her in rank is satisfied that for reasons to be recorded in writing, it is not reasonably practicable to give the accused an opportunity of showing cause.

32.13 a) Where an employee is proceeded against under sub-rule 32.1 and the competent authority has decided that the case calls for a major punishment, the authority shall appoint an officer, being senior in rank to the person proceeded against to be Inquiry Officer and conduct the proceedings and may also specify a time limit within which the inquiry should be completed by the Inquiry Officer unless prevented by very special circumstances to be recorded by him/her in writing.

b) The Inquiry Officer shall hear the case from day-to-day and no adjournment shall be given except for reasons to be recorded in writing.

c) If the Inquiry Officer is satisfied that the employee proceeded against is hampering or attempting to hamper the progress of the inquiry, he/she shall administer a warning, and, if thereafter he/she is satisfied that the accused is acting in disregard of the warning he/she shall record a finding to the effect, and proceed to complete the inquiry in such manner as he/she thinks best fitted to do justice.

d) The inquiry officer shall, within 10(ten) days of the conclusion of the proceedings, submit his/her findings and the grounds thereof to the competent authority

e) The competent authority may, in any case if deems fit, instead of appointing an Inquiry Officer under clause (a) appoint an Inquiry Committee consisting of two or more persons and, where an Enquiry Committee is so appointed, references in this Sub-rule to an Inquiry Officer shall be construed as references to the Inquiry Committee.

32.14 a) An employee compulsorily retired shall, except as hereinafter provided, be entitled, subject to the order of the Board, to such retirement benefits as would have been admissible to him/her on the date of retirement under provisions of the rules as applicable to him/her if he/she had been discharged from service on account of the abolition of his/her post without alternative suitable employment being provided:

Provided that where the compulsory retirement follows a period of suspension ordered under sub-rule 32.3 such retirement benefits shall be admissible only for the period of service rendered excluding the period of suspension.

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b) Subject to any order of the Board made on compassionate grounds, an employee who is dismissed from service shall not be entitled to any retirement benefits including benefits accruing from the Bank's contribution to the Provident Fund of the Bank.

32.15 (a) Where the services of an employee to whom these rules apply are lent to another Bank or to any other local authority, in this sub-rule referred to as the borrowing authority, the borrowing authority shall have the power of the competent authority for the purpose of placing him/her under suspension and of initiating proceedings against him/her under these rules.

Provided that the borrowing authority shall forthwith inform the authority which has lent his/her services, hereinafter in this sub-rule referred to as the lending authority, of the circumstances, leading to the order of his/her suspension or the commencement of the proceedings, as the case may be.

(b) In the light of the findings in the proceeding taken against the employee in terms of clause (a), if the borrowing authority is of opinion that any of the punishments specified in sub-rule 32.1 should be imposed on him, it shall transmit to the lending authority the record of the proceedings and thereupon the lending authority may, if it is the competent authority, pass such orders thereon as it deems necessary or, if it is not the competent authority, submit the case to the competent authority which shall pass such orders on the case as it deems necessary.

c) The competent authority may make an order under this sub-rule on the record of the inquiry transmitted by the borrowing authority or after holding such further inquiry as it may deem necessary and in passing such order, shall if it becomes necessary, comply with provision of clause (c) of sub-rule 32.11.

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CHAPTER-III

General Functions and House Keeping of the Branch Incumbents:A Manager/Branch Incumbent is

1 To be responsible for smooth conduct, control, supervision and administration of the entire affairs of the Branch.

2 To ensure proper security measures of the Branch.To maintain discipline and office decorum for achieving congenial atmosphere and desired working efficiency at the branch.

3 To ensure proper compliance with Shariah in all banking activities.4 To allocate duties among the officers by an internal Job description for

smooth functioning of the day-to-day works of the Branch.5 To keep constant watch on the desk works of the officers of the branch.

To be ensure that the officers are alert to pay due attention to the clients for rendering satisfactory services.

6 To be responsible for exercising discretionary power as delegated by Head Office regarding Administrative, Financial & Business affairs of the Bank.

7 To ensure compliance of the Head Office instructions in conduct of the affairs of the Branch.

8 To ensure maintenance of proper books of accounts, ledgers and registers, Computer Sheets, Security instruments/Documents, Keys and Test Keys of the Branch including their periodical balancing and checking thereof.

9 To check Clean Cash Book, General Ledger and affairs daily.10 To ensure rectification/ regularization of any audit/inspection

irregularities/lapses guarding against recurrence of similar lapses.11 To take steps for any legal proceedings against any defaulted investment Client

in order to protect the Bank’s interest. The cases already filed by the Bank should be properly followed up.

12 To exercise vigilance in the passing/signing of any negotiable instruments/vouchers/documents and papers involving any financial implication or interest of the Bank and to follow the standing rules and practices relating thereto.

13 To attend the reported problems and complaints from any corner and take appropriate steps as considered necessary to dispose of such cases and apprise Head Office of the matter, where necessary.

14 To take steps for achieving the business targets of the Branch fixed by the Head Office with regard to Deposit/Investment/Foreign Exchange and other field of activities by exploring all potentialities.

15 To exercise all out efforts for achievement of business targets fixed by Head Office.

16 To attend the Branch Managers conference when arranged by Head Office.

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17 To keep close contact with Head Office and seek decision in the disposal of any important matter, if necessary.

18 To keep contact with the Investment Clients and ensure timely recovery of the Investments.

19 To be responsible for proper control and maintenance of Computer to check fraud and forgery as per instruction of Head Office issued from time to time and to ensure meticulous compliance of ICT Guidelines.

20 To inspect Establishment, Show Room, Godown of Investment Clients and verify the stocks of Bai-Murabaha, Bai-Muajjal-TR, MPI etc. at periodical intervals and ensure timely recovery of investment of the Branch.

21 To act as joint custodian of Cash and Valuables of the Branch.22 To open and close Cash daily. The entire cash of the branch should be

physically verified in every fortnight. 23 To prepare Annual Confidential Report (ACR) of all the employees under his

control impartially, exactly and unbiasedly. 24 To keep contact with Govt. Officials, Local Elites, Autonomous, Semi-

autonomous, other Agencies and prospective client of other banks for development of Branch business.

25 To arrange job rotation of the employees for enabling them to get oriented in all areas of operations of the Branch.

26 To inspect/visit/ verify branch’s Investment godown(s) on regular intervals to ensure effective control over the Murabaha goods of the Branch. To follow FIFO and LILO system for Murabaha goods of the branch.

27 To submit Statements/Return and Audit & Inspection Compliance Report to the concerned Division/Department of Head Office in time.

28 To bring the contents of all Circulars, Circulars letters and Departmental letters to the knowledge of all concerned for meticulous compliance.

29 To perform any other functions/duties as assigned by Head Office from time to time as and when required.

30 To follow the instructions as contained in the Prevention of Money Laundering Act 2002 and related circulars of Bangladesh Bank to safe guard the interest of the bank and from any defamatory consequences.

31 To ensure compliance of directives of Bangladesh Bank issued from time to time.

33 Conduct ofBusiness Powers and Responsibility-

Managers and in the case of controlling offices, the Officers in-charge of the offices are responsible for proper conduct of business at the branches and offices in their charge. They are responsible for safety of cash, gold, other valuables, securities, security stationeries and all outstanding investment files thereof at the respective branches and offices and for the organization and supervision of the office routine.They must see that the system of check is effective, that the employees working under them do not exceed their delegated/authorized powers and that the office procedure strictly conforms to the instructions embodied in the Bank’s manuals, circulars etc. issued by the Head Office from time to time. They must make occasional surprise checks to see whether or not the day-to-day business of the branches/offices is disposed of efficiently and expeditiously. If not, the causes for inefficiency and slow working should be investigated and remedial measures be taken.

34 Whenever there is a change of Manager at a branch a letter for reporting the handing over and taking over charge of the branch duly signed by both the outgoing and the incoming Managers should be sent to the Head Office along with the Relieving Manager’s Certificate and Cash Verification Report in

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which all additions and deletions must be initiated. A copy of the charge report and also a copy of Relieving Manager’s certificate and Cash verification Report should be at the branch for record. Special attention should be given to the personal verification of the branch cash balances, bills at hands and other documents and securities obtained against outstanding investment and also to the personal check of the books of the branch in order to ensure that all these are balanced as per instructions upto date. A cash verification report duly signed by Cash in charge, Joint custodian, 2nd officer, Relieved and Relieving Manager to be sent to Head Office.

35 Wherever there is a change of the Manager or any other Officer vested with signing powers, authenticated specimen signature of the new incumbent must be forwarded to all local banks and such other organizations with whom the branch maintains accounts or has any other financial transactions duly attested by the outgoing Manager.

36 The duties and responsibilities of the second officer (i.e. the officer next to the Manager) will vary according to the size and nature of business of the branches at which they are posted. While this officer is under the superintendence of his Manager he must obey the instructions of the Manager. He has at the same time a direct and personal responsibility to the Head Office in regard to the proper conduct of Bank’s business. It is his duty to report to the Head Office any deviation from the rules and regulations of the Bank which he considers detrimental to the Bank’s interests and any defect in the Bank’s security of which the Head Office may be unaware. Ordinary such reports should be submitted to the Manager for transmission to the Head Offices and he should only address the Head Offices direct in exceptional circumstances particularly in cases of irregularities where the Manager is involved either directly or indirectly.

37 The extent to which Managers and other officials can exercise passing, signing and checking powers is communicated to the offices/branches by the Head Office from time to time and instructions of the Head Office in this regard should be followed carefully.

38 A summary of the latest maximum passing and checking powers, etc. of the various grades of officers are given below. Advice of limit upto which each officer at a branch may pass cheques, etc. for cash payment and the fact should be conveyed to the Officer (Cash) in-Charge of Cash Department in writing with an authenticated specimen of each officer’s signature.

39 Schedule of power for passing Cheques/Instruments/Vouchers is given hereunder:

Sl.No.

Rank CeilingCash Payment Transfer vouchers

1. a) Junior Officer & Officer

b) Senior Officer & Executive Officer

Upto Tk. 5,000/-singly, Tk 15,000/- jointly;

Upto Tk. 10,000/- singly, Tk 50,000 Jointly;with any other authorized Officer.

Upto Tk. 50,000/- jointly with any authorized officer.

Upto Tk. 1,00,000/- jointly with any authorized officer.

2.a) Senior Executive

Officer & First Asstt. Vice President

b) Asstt. Vice President & Sr. Asstt. Vice President

Upto Tk. 15,000/- singly, Tk 1,00,000/- jointly with the Second Officer

Upto Tk. 20,000/- singly, Tk 3,00,000/- jointly with any other authorized Officer.

Upto Tk. 3,00,000/- jointly with any authorized officer.

Upto Tk. 5,00,000/- jointly with any authorized officer

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3. a) Vice President

Upto Tk. 25,000/- singly, Tk 5,00,000/- jointly with any other authorized Officer above the rank of SO.

Upto Tk. 10,00,000/- jointly with any authorized officer.

4. a) Senior Vice President & Executive Vice President

Upto Tk. 50,000/- singly, Tk 10,00,000/- with any other authorized Officer above the rank of SEO

Upto Tk. 20,00,000/- jointly with any authorized officer.

5. a) Branch Incumbent (From FAVP to SAVP)

b) Branch Incumbent (From VP to EVP)

Upto Tk. 20,000/- singly, any amount jointly with any other authorized Officer.

Upto Tk. 25,000/- singly, any amount jointly with any other authorized Officer.

Unlimited jointly with any authorized officer.

Unlimited jointly with any authorized officer.

40 All transfer vouchers shall have to be signed by any two authorized officials positively as prescribed above. However, the above schedule might be changed in future considering the genuine requirement, if any.

40 While the Cash Department officials should normally be entrusted with the duties of the Cash Department, they may be entrusted with such other duties of the General side as may be considered necessary at the discretion of the Manager or any other authorized officer.

41 Managers must give their supervising officers every facility to make themselves acquainted with the business of the branch and should train them in the various aspects of branch management. Similarly all supervising officers must look into the training of the Junior and Residency Officers working under them and should see that they are given opportunities of learning the work of the various posts at the branch ensuring proper job rotation plan.

42 Confidential Report of all Officers and Staff as on 31st December should be sent to the Head Office, Human Resources Department, on the prescribed form by the 15th January each year. The Manager should write confidential Reports on all Officers working under the Manager personally. All concerned upholding the spirit of ‘Adal’, ‘Ehsan’ and ‘Amanah’ should follow instructions of the Head Office regarding signing and countersigning of Confidential Reports.

43 Managers must never be away from their station overnight without obtaining prior permission from Head Office and in asking for permission they must report the precautions they propose to take to safeguard the Bank’s interest. At branches where the nature of the business is such as to make it advisable for the Manager not to be frequently away from his Head Quarters. The Head Office may grant general permission and in such case the Second Officer will be responsible for looking after the interest of the Bank during the Manager’s absence. Other Officers may leave their station after Office hours with the prior permission of the Manager.

44 At branches where there is no official in the rank of Executive Officer or above after the Manager and the Manager is suddenly incapacitate for duty, immediate instructions must be sought for by telegram or telephone or any other means immediately by the official next in rank from Head Office to

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make necessary arrangements to meet the emergency. If necessary Head Office will depute a suitable officer to carry on the work of the branch during the Manager’s absence.

45 The responsibility of the cash-In-charge who is also a joint custodian of Cash, should be clearly assigned by the Manager. In the event of anything happening to the Manager/any Custodian, the Cash-In-charge will immediately assume control of cash jointly with the official next to the rank of Manager and will attend the branch until the arrival of the reliever, if required.

46 KnowledgeOf OfficeProcedures, Rules, Regulations and Other Instructions

All Managers and other supervising officials must make themselves fully acquainted with the constitution of the Bank and its administrative setup, functions, objectives, office procedures etc. For this purpose they should have full knowledge about the following: -

i). Bank’s Memorandum and Articles of Associationii). Bank’s agency arrangement with local banks and foreign correspondents.iii). Bank’s manuals and all amendments thereto issued from time to time.iv). Bank’s Test Keys used for remittance and Authorized Signatures Book.v) Instructions Circulars/Letters of Controlling Authority/Head Office regarding the Management of the branches of Bank.

47 UpdatedInformation

They must also keep themselves fully informed of all the relevant provisions of all Acts, Ordinances, Rules and Regulations relating to the Bank’s business.

48. The Government Gazette must be examined daily, weekly for notifications affecting the Bank’s business. Should any instruction contained in the Gazette notifications appears to conflict with those laid down by the Banks, reference should be made to Head Office for orders immediately.

49 Maintenance of Index Register

In all branches and at Head Office an Index Register should be maintained subject wise. This Register should contain the particulars of all books, registers, files etc., so that any official of the Bank in case of need can ascertain position of books/registers and files maintained in the branch, and in a Department of Head Office. When any file/register/Index is to be opened, the Index Register should be checked by the Branch Manager and authorized officials of Divisions/Departments of Head Office.

50 Signing Power of Officer

The signing powers of the Bank’s various officials as notified by Head Office from time to time must not be exceeded. Only Managers (and Second Officers in some offices) are vested with unlimited signing powers. As a general rule Managers and in large offices, officers specifically authorized for the purpose will themselves sign all correspondences to, Head Office, constituents and others except on ordinary routine matters. Two authorized officers must sign in Drafts, Payment Orders, Letters of Credit, Bank Guarantee, Cheques, Deposit Receipts and vouchers jointly.

51 Other officers authorized for the purpose may sign receipts and endorse Cheques and Drafts. They may also sign credit advices to other offices of the Bank in respect of bill for collections etc. to the extent of their passing power but all Drafts, P.O. and transfer advice(s) must be signed by the authorized official(s) referred to in the preceding paragraph jointly with another officer/signatory.

52 No employee, other than the supervising officer is empowered to make any commitment for and on behalf of the Bank in any way whatsoever and must not, therefore, be permitted to initial statements of account or pass-books or receipt counterfoils in pay-in-slips. Counterfoils of credit voucher deposited in cash signed by the authorized receiving officer (cash), must be countersigned by a supervising officer.

53 The bound book of Authorized Signatures containing signatures of the Bank’s authorized officers provided to all offices must be kept under lock

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and key when not in use. The relative specimen signature must be referred to when necessary, before any draft is paid or any mail IBCA/IBDA and transfer instructions purporting to have been issued from another office of the Bank are acted upon.

54 Signing officials are expected to cultivate and maintain uniform and legible signature as a convenience to other officials and a precaution against fraud. They should also indicate the number assigned to their signatures in the Authorized Signature Book on instruments or messages containing such instructions as may involve risk in their execution.

55 Managers must invariably request inspectors and auditors to produce their letters of authority before allowing them access to the Bank’s Books or Records. They must also identify them by their signatures with reference to the Authorized Signature Book, if they are not personally known to them. The arrival of Bank’s Auditors at a branch should be immediately reported to Head Office. Further arrival of Inspection Team from Bangladesh Bank or any other regulatory bodies should also be reported to Head Office

56 Recruitment of Officers and Staff

When due to death or retirement of employees or for any other reason replacement or additions in the establishment become necessary, Managers/Incumbent in-charges should submit their proposal to the Head Office for necessary replacement. No recruitment at branches is permissible without the authority of the Head Office.

57 Recruitment of Officers and Staff in various categories will normally be done by the Head Office (Human Resources Department) in accordance with the requirement of the Bank and Recruitment policy laid down by the Board from time to time. Temporary appointments in non-officers grade may be made by the branches to meet temporary requirements with the prior permission of the Head Office.

58 No candidate shall be appointed in the Bank’s service unless the Bank’s Medical officer or any other medical authority specified by the bank in this behalf certifies him physically fit. The relative medical certificate must be filed in the employee’s personal file. Candidates of advanced age i.e. of the age beyond the maximum age prescribed for appointment should not normally be appointed to regular posts of the Bank. Exceptions may, however, be made in case of candidates with exceptionally brilliant academic qualifications and or with sufficient experience.

59 Rotation of Duties

Rotation of duties of Officers (i.e. Assistant Officers, Junior Officers, Officers) at reasonable intervals not only provides a safeguard against frauds but also assists in making the services of these officers of greater value to the Bank. Duties should therefore be rotated conveniently as often as it is possible to do so without interfering unduly with the smooth functioning of the office.

60 Payment of Salary for the month of transfer.

When an employee is transferred from one office to the other and he is released after 20th of a month he will be paid his salary for the full month by the office from which he is transferred. If he is released within 20 th of the months the office to which he is transferred will pay him his salary for the full month. The office from which he is transferred will send to the office to which he is transferred a Last Pay Certificate (as per Prescribed format) and also will forward his Record of Service/personal file.

61 Supply of Testimonials

Testimonials should not be given to employees or ex-employees of the Bank. Should any employee who has left or is about to leave the Bank’s service apply for a testimonial, a simple statement of his service extracted form his service record should be handed over to him with instructions to refer prospective employers to the Bank’s Head Office, HRD, Statement of service should not be given to an employee who is in the service of the Bank or who intends to continue in the same.

62 Lodging of F.I.R.

In cases where fraud is discovered at a branch and the Manager has reason to fear that the suspected person will decamp, he will immediately lodge an

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F.I.R. with the local police station with a view to secure his (Suspected person) arrest under advice to Head Office, if the time at hand is inadequate to obtain prior permission of Head Office for the purpose. In such a situation it is advisable to take necessary action promptly after obtaining legal advice from Bank’s paneled lawyer. In any case when a fraud is detected, it should be reported to Head Office through any available means of communications followed by detailed report for their instructions.

63 Engagement of Lawyers

The general legal affairs of Bank is conducted at the Head Office by LRD and it is the Bank’s policy to engage local lawyers for getting legal opinion on urgent matters involving legal points, examining various documents in connection with Bank’s business for conducting court cases on behalf of the Bank particularly for recovery of Bank’s dues. For this purpose the Bank has approved panels of lawyers for different centers and their fees are decided with the approval of the Head Office. If any legal assistance is required at a center where there is no paneled lawyer and it becomes difficult to get the legal assistance from an approved lawyer for another center, approval of the Head Office should be obtained for engaging a local lawyer and for determining his fees.

64 Power of Attorney Of the Officials:

Power of Attorney is authority of the officials to act as an agent of the organization. It is provided by Bank duly authorized and as per legal requirement of the country.

65 The Power of Attorney of the officials attached with Head Office to be maintained/preserved by the HRD, SIBL, Head Office, and Dhaka with proper records in Branch Document Register (B-26) or in Safe in safe out Register (B-72). So, in case of transfer of the officials from branch to Head Office or any office other than the branch, the relative Power of Attorney be sent to the HRD, Head Office, Dhaka with proper record.

66 The Power of Attorney of the officials attached to the branches shall be kept/maintained by the respective Branches with proper records in Branch Document Register (B-26 in Safe in safe out Register (B-72)). In case of transfer of officials from one branch to another branch, the Power of Attorney be transferred to the branch of posting of the concerned official(s) duly noted in the Branch Document Register (B-26) in Safe in safe out Register (B-72).

67 Customers Service & Proper House Keeping

For the Bank, a customer is a person who matters most and so due attention must be given for his comfort and satisfaction. The Bank premises should be kept absolutely clean and tidy at all times so that a customer feels happy and comfortable while on business with the bank. Further, a little more personalized services are apt to generate more business in the competitive banking business atmosphere. Managers and all employees of the Bank should therefore make all out efforts as a mission of their banking career to provide personalized services by way of prompt disposal of clients at the counter and at the desk and also by paying heed to their slightest complaint. They should be very courteous and polite in their conversation even with customers even if the customers behave impolitely. Any complaint of customer should be looked into promptly and an employee is really responsible for any genuine causes of complaint should be dealt with as per provisions of the employees’ Service Regulations and appropriate steps should be taken to avoid recurrence of such compliant.

68 Placement of complaint box As per guidelines of Bangladesh Bank all Branches have to place a

complaint box in the premises of the Branches in convenient places to enable the customers to lodge their complaints or suggestions, if any. The Head Office Executive during their visit to the branch shall oversee the branch’s action on the complaint received.

69 Cleaning of Branch Premeises

The Bank’s Books, Records, Furniture & Fixture should be kept clean and outside wall, board, fans should be cleaned having sufficient lighting. Bathroom, toilets should be cleaned after frequent interval. General

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appearance of the branch including cleanliness, arrangement of the counter, cabin, fixtures and furniture, notice board, named board, sign board, fans etc. should be proper so that customers may be attracted.

70 Internal ControlSystem

As per guidelines of Bangladesh Bank, Internal Control & Compliance Division of our Bank is performing duties through Internal Audit Department, Compliance Unit and Monitoring Unit with a view to continue the process of safe and sound banking; safeguard the interest of the Bank; detection of errors, fraud & forgery, irregularities and suggestions for prevention of irregularities and protection of loss of assets of the Bank. So that, all concerned will follow meticulously the instructions of the manual sent from ICCD and others instructions issued through circulars from time to time to mitigate the risks of day to day works in the Bank. Internal check system has been evolved as a means to an end. This will ensure maintenance of proper accounting procedure and will work as a check and balance between delegation of authority to the members of the staff on the one hand and sufficient control of function of branches on the other hand.

71 Motivation To achieve the objective of SIBL, it is essential to educate and motivate the Managers, Officials and Staff to exercise greater care and caution in their day to day working in branch taking the service in SIBL as “Working together for a caring society” and inculcate in them moral and ethnical values coupled with the spirit of dedication, diligence, devotion and belongingness to the institution so as to enable them to accomplish their duties properly, accurately efficiently and in appropriate manner.

72 Compliance to Audit/Inspection Reports.

The irregularities pointed out in the Audit Report and sent to the branches for proper rectification/regularization should be carefully read and rectified on priority basis. The branches will submit the compliance reports within the stipulated period; so that, reminders for the same again and again be avoided.

73 Compliance of Operation Manual & H.O. Circular

The Managers and Officers must exercise extra ordinary care, caution for strict adherence to the instructions contained in Bank’s Operation Manuals and Instruction Circulars & Circular letters etc. issued from time to time

74 Use of SIBL ATM Debit Card

The Branch incumbent and dealing officer of ATM Debit Card section will take all out efforts to popularize the SIBL ATM Debit Card to the clients as well as prospective customers of other Banks. They will make vigorous drive for this purpose. For providing smooth services to the customer they will make frequent correspondences with the In-charge ATM Debit Card Cell, Head Office

75 Books, Manuals, Gazette and other reference books

Sometimes Branches purchase books, gazettes etc. for observance of rules and regulations in banking. Branches have to record the books in a register by maintaining chronological serial of the Books and preserve those in the Branches for ready reference by which all the officers of the Branch can know the latest information regarding Banking activities.

76 Sorting of notes in cash section

The Branches will ensure payment of issueable notes to the clients.. They will always sort the notes and separate the non-issue, defective & built up notes from issue notes in the counter. They will deposit the defective notes as per guide lines of Bangladesh Bank and take care to avoid the bushes of defective notes in the vault.

77 Careful operation of On-line Banking

The Branches while providing online-banking services to the client will observe cautions against fraud & forgery. In case of debit of cheques the instructions for ceiling of amount in MSD, MND, AWCD etc. must be followed. Any deviation will be seriously dealt with. Branch will follow instructions guidelines and precautionary measures as conveyed to them through Instruction Circular number SIBL/HO/ICTD/2006/70 dated

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28/12/2006 issued by ICT Dept. Head Office.78 Maintenance of

Electrical, Electronics & Mechanical appliances

At present, the Branches are using valuable electrical, electronics & mechanical devices & equipments for smooth functioning of banking activities through new technology. The incumbent of the Bank will take careful measurement to protect all these appliances from damage, loss and malhandling. For improper use of appliances, the dealing officers will be held responsible.

79 Use of SWIFT The AD Branches where SWIFT facility is available for International Correspondence, Foreign Exchange Business, Foreign Remittances and any other relations have to observe utmost care to avoid untoward transaction since SWIFT message is untested.

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CHAPTER-IV

LEAVE

The following kinds of leave may be granted to an employee:

1. PRIVILEGE LEAVE Every employee shall be entitled to Privilege Leave on full pay at

the rate of one-eleventh of the period spent on duty, that is, one day for every eleven days of duty, and the maximum that can be accumulated shall be 120 days at any point of time including 15 days obligatory privilege leave as provided in Section 34.19.Any period in excess of 120 days shall be recorded separately in the leave account and may be allowed on full pay on medical ground or for the purpose of pilgrimage or any other religious purpose or for the purpose of education and the period of such leave on full pay that may be taken at any one time shall not exceed 12 months in the entire service period.

2. CASUAL LEAVECasual leave means a leave of absence for a very short period granted to an employee who may be unable to attend duty during such period due to sudden illness or urgent private affairs. Casual leave may be granted to an employee up to a maximum of 15 (fifteen) days in a calendar year, but not for a period exceeding 5 (five) days at a time. The unspent period of casual leave not availed of during a calendar year shall lapse on the 31st December of the year. Casual leave may be taken in continuation of and in combination with holidays including Fridays and if holidays and Fridays intervene two spells of casual leave the entire period (including holidays) shall be reckoned as casual leave provided that the total period for which casual leave is admissible and if it exceeds the period shall be commuted into Privilege leave as may be due and if no leave is due, into leave without pay. Casual leave cannot be combined with any other leave.

3. STUDY LEAVEStudy leave without pay for maximum 3 (three) years may be

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granted by the Board or authority empowered by the Board to an employee having at least five years of continuous service. Study leave shall not be granted to an employee who has put in less than 3 (three) years service or to an employee who is due to retire within 5 (five) years from the date on which he is likely to return from the study leave.

4. MATERNITY LEAVE

The competent authority may grant to a female employee maternity leave with full pay for a maximum period of 3 (three) months around the time of her confinement. The grant of maternity leave is however, subject to the condition that the female employee has been in service for at least nine months immediately preceding the date of delivery. However, this facility may be availed maximum on 2 (two) occasions during her entire service period.

5. FATHER’S CHILD CARE LEAVE:

In case of wife’s death/serious illness resulting in hospitalization leaving minor children requiring care, employee can get upto maximum five days child care leave in a calendar year provided a certificate is produced regarding the death of his wife/or her hospitalization requiring care of the children.

6. FAMILY LEAVE:

If any one of the family members consisting of wife, children and parents dies the employee will get three days leave in a calendar year on production of death certificate of the deceased or accident certificate as the case may be.

7. QUARANTINE LEAVE

Quarantine leave is leave of absence from duty necessitated by orders not to attend office in consequence of the presence of infectious disease in the family or household of an employee and such leave may be granted by the competent authority on the certificate of the authorized Medical Officer, Public Health Officer for a period not exceeding 21 days beyond which leave will be granted against leave Account or leave without pay. Any leave necessary for the purpose exceeding this period shall be treated as ordinary leave as may be due.

Note: Cholera, Pox, Plague, Diphtheria, Typhus fever, Measles, Mumps and Carcbro-spinal Meningitis etc. may be considered as infectious disease for the purpose of this rule.

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8. OBLIGATORY PRIVILEGE LEAVE

Competent authority shall grant at least 15 days Obligatory leave out of 1 (one) month’s accumulated Privilege Leave of an employee with 1(one) month’s basic pay as leave fare every year subject to the condition that 15 days privilege leave will be debited from his/her leave balance.In case of the employees who had accumulated privilege leave at their credit before introduction of this leave w.e.f. 01/07/99 i.e. upto 30/06/99 shall not lapse and therefore be counted in the leave balance.

9. LEAVE WITHOUT PAY Leave without pay may be granted to an employee in special

circumstances when no other leave is admissible under these rules. The duration of leave without pay shall be so regulated that the amount of total leave including other leave taken in combination does not exceed the maximum of two years at any one time. In case of a temporary employee who has not completed five years continuous service the duration of leave without pay at any one time shall not exceed three months.

10. ENCASHMENT OF UN-AVAILED LEAVE Every employee, with prior approval of the sanctioning authority,

shall be entitled to encash 50% of their un-availed leave subject to the condition that he/ she must keep a minimum leave balance at his/her credit after encashment as follows:

Regular employees minimum.............................45 daysEmployees on contract basis minimum..............15 days

The minimum leave balance so kept may however be encashed by the employee while proceeding on LPR/Retirement and after Resignation, Termination.

Provided that such encashment will not exceed total 12 months in the entire service period.

11. LEAVE SALARYLeave Salary during leave on full pay shall be equal to the pay which the employee was drawing before proceeding on leave or the average of pay drawn during last twelve complete months preceding the month in which leave is taken whichever is more favourable to the employee.

12. CONSIDERATION FOR GRANTING LEAVE

In case where all applications for leave cannot, in the interest of the service of the Bank, be granted the competent authority shall , in

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deciding which application should be granted take into account the following considerations:

a. the employees who can, for the time being best be spared.b. the amount of leave due to the various applicants.c. the amount and character of the service rendered by each

applicant since he lastreturned from leave.d. the fact that any such applicant was compulsorily recalled from

his last leave.e. the fact that any such applicant has been refused leave in the

interest of the Bank.f. any other reasons considered appropriate by the competent

authority.

13. WHEN LEAVE SHALL NOT BE REFUSED:When a Medical Officer of the Bank or any other Medical Authority specified for this has reported that there is no reasonable prospect that a particular employee will ever be fit to return to duty, leave should not necessarily be refused to such an employee. It may be granted if due by a competent authority on the following conditions:

If the Medical Officer of the Bank or any other Medical Authority so specified is unable to say with certainty that the employee will ever be fit for service, leave not exceeding six months in all may be granted. Such leave should not be extended without reference to a second medical opinion or to a Medical Committee if so specified by the Bank.

14. LEAVE PROCEDURE

Th Leave account of an employee shall be maintained in such form as the competent authority may specify.

The leave account of an employee shall be maintained by such officer as the competent authority may determine.

Every application for leave or for an extension of leave shall be sent to the authority competent to sanction the leave through the immediate superior.

Before an employee is granted leave or extension of leave, on medical ground, he/she must obtain a certificate from the Medical Officer of the Bank or any other Medical Authority specified by the Bank accompanied by a statement of his/her case in the form to be specified in this behalf.

The Medical Officer shall not recommend the grant of leave in any case in which there appears to be no reasonable prospect that the employee will ever be fit to resume duty, in such cases, the opinion that the employee is permanently unfit for service should be recorded in the medical certificate.

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The production of a medical certificate from the Medical Officer of the Bank or any other Medical Authority specified in the behalf does not in itself confer upon the employee any right to leave. The certificate be forwarded to the competent authority to the sanction the leave and the decision of the competent authority should be awaited.

An application for extension of leave on medical grounds by an employee on leave out of Bangladesh shall be accompanied by certificate from the concerned medical practitioners. The certificate must describe in full details the nature of the disease and the condition of the employee.

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CHAPTER-V

TRAVELING ALLOWANCE RULES

TRAVELING ALLOWANCE RULES

e Employee traveling on duty or on transfer is entitled to traveling allowance/ mileage allowance. For this purpose the employees of the Bank have been categorized as under: -

Category I:

A) Managing Director

B) 1. Deputy Managing Director2. Executive Vice President

C) 1. Senior Vice President2. Vice President3. Senior Asstt. Vice President

D) 1. Asstt. Vice President2. First Asstt. Vice President

E) 1. Senior Executive Officer2. Executive Officer3. Residency Officer.

Category II :

1. Senior Officer 2. Officer

3. Asstt. Officer

Category III :

1. Driver Grade-I / Care Taker / Electrician2. Driver Grade-II3. MCG Grade-I & Equivalent4. MCG Grade-II & Equivalent

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01.DEFINITION(a) Day means calendar day, beginning and ending at mid-night.

(b) Daily Allowance means a payment to an employee in addition to other emoluments for any day during which an employee is absent from permanent station on duty to cover the ordinary expenses incurred by him/her in consequence of such absence.

(c) Fares shall mean in cases where the steamer company has two rates of fare, one inclusive & the other exclusive of diet, fares without diet & shall include the cost actually incurred for reserving accommodation either by rail or steamer.

(d) Family means an employee’s wife/husband, sons and daughters wholly dependent on him.

(e) Mileage Allowance is an allowance calculated on the distance of travel, which is given to meet the cost of a particular journey.

(f) Personal effects shall include household articles, such as furniture and other luggage, etc.

(g) In this section traveling expenses mean the actual cost of transporting an employee of the Bank with his/her servant if permissible, and luggage, including charges for ferry, taxes, tools, coolly charges etc. It does not include charges for hotels, travelers bungalows or refreshments or for presents or tips or any allowance for incidental losses or expenses such as breakage of crockery, wear and tear of furniture, etc.

02.By Rail or Steamer: Employees will be entitled to draw rail/steamer fares as indicated below for journeys undertaken on transfer or on tour: -

2.1Category ---I (A), (B) & (C) First ClassRail/Steamer or Economy Air ticket.2.2 Category --- I (D) & (E) First Class Rail/Steamer..2.3 Category --- II Second Class Rail/Steamer..2.4 Category --- III Third Class / The lowest Rail/Steamer.

Note: 1. In the event of a particular class of accommodation not being provided by rail or steamer, an employee will be entitled to travel by the next higher class.

2. Employees in Category 1(A) and (B) will also draw cost of air-conditioned accommodation, if availed of.

03. By Road : For journeys or parts thereof performed by road,

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employees will draw Mileage Allowance at the following rates :-

3.1 Employees will draw Mileage Allowance at the following rates :-

1)2)3)4)

Category ---Category ---Category ---Category ---

I(A), (B)I(C, D & E)IIIII

Tk.2.20 per k.m.Tk.1.65 per k.m.Tk.1.10 per k.m.Tk.0.83 per k.m.

3.4 An employee when moved from his/her station on duty shall draw Daily Allowance in the following circumstances :-

(a) On transfers provided that an employee on permanent transfer will be entitled to Daily Allowance for the days of journey only, which shall include compulsory detention en-route.

(b) On tour in connection with the development, inspection, audit, cash verification, or any other work.

3.5 An employee shall be entitled to Daily Allowance (DA) for the period of absence from his/her permanent station, subject to a maximum period of one month at any one time or at any one station as under: -

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1) Employees in Category

I(A) (MD)

Actual Hotel bill for accommodation plus Tk.500/- as DA or Total DA Tk.1000/- where hotel accommodation is not available.

2) Employees in Category

I(B) (DMD)

Actual Hotel bill for accommodation plus Tk.450/- as DA or Total DA Tk.900/- where hotel accommodation is not available.

3)4)5)7)

Employees in CategoryEmployees in CategoryEmployees in CategoryEmployees in CategoryEmployees in Category

I(B) (EVP)I(C)I(D) & (E)IIIII

Tk. 750.00Tk.600.00Tk.550.00Tk.450.00Tk.250.00

Provided that

a) The limit of one month may in special circumstances be extended at the discretion of the competent authority. The limit will not apply to employees on inspection and audit and on verification duty.

b) Daily Allowance will be admissible only if more than 8 hours are spent out-side the station beyond a radius of twenty miles.

3.6 Traveling Expenses will be admissible to every employee on permanent transfer from one station to another unless he/she is transferred at his/her own request. A transfer at his/her own request shall not be treated as transfer in the Bank’s interest unless the authority sanctioning the transfer, for special reasons.

Journey by Rail or Steamer: An employee transferred permanently from one station to another shall, in addition to Daily Allowance, if admissible draw traveling expenses on the following basis for journeys by rail or steamer:

(i) Two fares of the class of accommodation to which he/she is entitled.

(ii) One fare for each adult member of his/her family who accompanies him/her & for whom full fare is actually paid & one half fare for each child for whom such fare is actually paid subject to a maximum of 4 adult fares and one fare for the widow mother

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provided the employee certifies that she is fully depended on him. An employee in category I will further be entitled to charge one fare for the lowest class in respect of one servant where actually paid.

(iii) Ferry charges, tolls, taxes, coolly charges etc. for himself & his/her family, where actually paid & also portage incurred by him/her & his/her family from one section to another to reasonable extent.

(iv) Actual cost of carriage by train, cargo ship & public transport of personal effects up to the following maxima. However goods may be carried by truck with prior permission of the authority

Category of Bank employees If not possessing a family Possessing a family

I (A), (B) & (C) 1500 Kg 2250 KgI (D) & (E) 1125 Kg 1700 KgII 560 Kg 850 KgIII 375 Kg 560 Kg

(v) In addition an employee in receipt of conveyance allowance will be entitled to the actual cost of transportation of his/her motorcar, if actually paid by him.

Note: When for unavoidable or climatic reasons the family of an employee travels separately within 6 months of his/her departure, fares for the members of the family by the class of accommodation to which he/she is entitled & the cost of transporting their luggage to the extent specified above may be paid by the Bank subject to the provision that in no case shall the total cost to the Bank be more than if the family had accompanied him.

04.Journey by Road: (A) An employee transferred from one station to another & traveling allowance on the following basis :-

i) Single Mileage Allowance at the rate applicable to him/her under rule 3 plus one additional fare of the class of accommodation to which he/she is entitled under rule 2.

ii) One additional Mileage Allowance at the same rate for his/her family.

iii) Cost of transportation of personal effects, subject to the maximum Kilogram permissible under rule 38.7(iv).

iv) Ferry chargers tools porterage taxes etc. for himself & his/her family to a reasonable extent where actually paid.

Employees in Categories II&III will perform road journey by a motor bus regularly plying for hire between two stations which are not connected by rail & claim the actual fare whereof in accordance with rule 38.7 where such conveyance is not available they will draw traveling allowance in accordance with rule 38.8 Employees in

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category-I will, however, be entitled to claim Mileage Allowance in accordance with rule 38.8 only in case where journey is not performed by a motor bus or lorry regularly plying for hire.

By rail, road or steamer-(a) An employee on temporary transfer, (for a period not exceeding 30 days) inspection, audit, cash verification or any other duty, if moved from one station to another shall in addition to daily allowance, if admissible, draw traveling allowance on the basis specified in rules 38.7 & 38.8 above. Provided that he/she shall not in such case be entitled to claim the cost of transportation of Personal effects & not more than single Mileage Allowance.

b) An employee in category I(A) will also draw a third class fare for one servant, where servant actually accompanies him/her on tour.

05.Journey by Air: (a) Employees in category I on transfer may, if required or permitted to do so by the Managing Director, undertake journey by air in which case they shall, in addition to the Daily Allowances & facilities admissible under rule 38.7 except that fare for one servant will be permissible at steamer of railways rates, where actually paid. Employees may also draw fares for their families either by air or alternative means of transportation where it is cheaper.

PROVIDED THAT the cost of transporting personal effects in such cases will be borne by the bank at railway or steamer rates.

(b) Employees in categories II & III may, on transfer, be permitted by the Managing Director to undertake journey by air in special circumstances.

(c) Employees who are on temporary transfer, development work etc. may, if permitted to do so, by the competent authority, undertake journey by air in which case they shall, in addition to Daily Allowance, if admissible, and taxes, coolly charges etc. be paid the actual cost including life insurance charges incurred by them.

06.Other Journey: An employee who is summoned in his/her official capacity by a court of law or any other authority, shall be entitled to authority, shall be entitled to traveling allowance under rules 38.10 or 38.11 (c) as the case may be, but in every such case in which an employee draws an allowance from the Bank under this rule, any payment made by such authority to meet his/her traveling expenses shall be paid to the Bank.

Except with the sanction of the Head Office no traveling allowance shall paid to a person to join his/her first appointment in the Bank.

07.General: When an employee uses the Bank’s car and does not pay propulsion charges, he/she will be entitled to Daily Allowance only, if admissible. In case the propulsion charges are paid by him/her he/she may draw the traveling allowances under Rules.

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(a) Traveling Allowance will be admissible on the basis of a journey by the shortest route, that is to say the route by which an employee can reach his/her destination in the shortest possible time by the ordinary mode of travel. Traveling allowance by a route costlier the shortest route which is not the shortest, his/her traveling expenses will be calculated according to the route actually taken.

(b) Between places connected by rail no journey is to be undertaken by road unless specifically permitted by the competent authority where the Bank’s interest is served by the road journey such as saving of time or inspection of any other work enroute.

Where confessional return fares, whether ordinary, week-end or seasonal are allowed by railway or steamer/ship or airway companies an employee traveling on duty otherwise than on transfer will, whenever possible, avail himself for the confessional fares and in the event of his/her doing so he/she shall be entitled to claim from the Bank only the actual cost of such fares and not the cost of single fares.

An employee shall travel by the class of accommodation for which traveling allowance is admissible to him/her and if he/she travels in a lower class he/she shall be entitled to the fares of the accommodation actually used :

Provided that an Officer of inspection or audit duty will be entitled to draw traveling cash allowance for the class admissible to him, if he/she travels by the next lower class, in case he certifies that his wife accompanied him/her during the journey.

Provided further that an officer in category 1 (A) who is entitled to travel on official duty by air in economy class, if travel time exceeds eight hours he will travel business class. If he takes his wife & travels in economy class while he is entitled to business, the officer will get the fare of business class provided he certifies that his wife accompanied him during the journey.

An employee who is required to travel on the Bank’s business may be permitted to draw an advance to meet his/her traveling expenses. The advance shall not exceed the traveling expenses likely to be incurred.

Any matter regarding T. A., D. A. not covered by this rules should be brought to Board for decision. This rule is subject to review from time to time.

All traveling bills shall be submitted to & passed for payment by the Managing Director or such other officer as may be authorized by him/her in this behalf. Managing Director’s TA/DA will be passed for payment by Chairman, BOD.

08.FOREIGN TRAVEL An employee whose duties require him/her to travel outside Bangladesh either on transfer on for any other official purpose, (A)

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the employee concerned shall be entitled to Air Freight in the following :-

Class of Air Freight Remarks 1. Managing Director Economy Class If travel time exceeds

more than 8 hrs, he will be entitled to Business Class Fare

2. Dy. Managing Director3. Executive Vice President4. Senior Vice President5. Vice President6. Asstt. Vice President7. First Asstt. Vice President8. Other Officers9. Staff

Economy / Special Fare

DoDoDoDoDoDoDo

* Bank shall appoint agent(s) who may give special discount / special economy class fare on cash purchase.

(B) The employees who will reside in the Hotel will get Hotel charge in the following rates: -

Hotel Charges or actual

1. Managing Director2. Dy. Managing Director3. Executive Vice President4. Senior Vice President5. Vice President6. Asstt. Vice President7. First Asstt. Vice President8. Other Officers9. Staff

$150$130$130$100$100$100$100$ 75$ 50

(C) The employees who will not reside in the Hotel and make his own arrangement will get Daily Allowance only in the following rates: -

Dearness Allowances1. Managing Director2. Dy. Managing Director3. Executive Vice President4. Senior Vice President5. Vice President6. Asstt. Vice President7. First Asstt. Vice President8. Other Officers9. Staff

$100$ 90$ 90$ 80$ 80$ 80$ 70$ 50$ 40

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CHAPTER-VI

CORRESPONDENCE, RECEIPT AND DESPATCH

1. Politeness in Correspondence

Officers of the Bank should invariably be courteous in their behaviour, correspondence with persons dealing with the Bank. Letters should be written in polite language and courteousness. Incivility for all times is avoided. If a Manager experiences difficulty with a constituent or with any institution, he should refer the matter to Head Office.

2. Correspondence By Head Office

The Head Office of the Bank will normally make correspondence with Government, Bangladesh Bank and other important organizations. When a Manager is asked by any local authority or any other local institution for a report or opinion on any matter of public importance or on any subject affecting the Bank, he should take action as under:-

2.1 He himself should dispose of letters of routine nature, if the matter does not relate to any policy or any commitment on the part of the Bank.

2.2 Whenever it is necessary, he should refer the matters to safeguard interest of the Bank to Head Office who should issue necessary instructions to the branch .

2.3 In regard to matters of policy and those involving commitment on the part of the Bank he (Manager) should invariably refer them to Head Office with related papers with a proposed reply, if possible..

2.4 The Managers should sign correspondences to Head Office, statements/Returns ensuring correctness of facts and figures.

3. Procedure of Handling Correspondence:

Managers will communicate when necessary, with the Head Office by means of letters addressed to the Head of the concerned Department/Division. Letters of particular importance or secrecy to be sent being closed in sealed covers marked “Confidential”. Demi Official letters are only permissible in exceptional circumstances and must not generally be resorted to as a matter of routine.

3.1 In all letters to the conduct of business of the branches, Managers are

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expected to give their definite and reasonable recommendations as to the course of action to be taken. Copies of secret letters will be retained by the Managers in their own possession together with such letters received by them from the Head Office. The letters should be briefly headed with the names of the subject to which they relate and should be filed under their subject headings. They should be numbered according to the system in force and should, for convenience also have their paragraphs numbered.

3.2 Normally not more than two copies of each letter should be taken out. Managers should, however, use their discretion in this matter with due regard to the importance of having an authentic record of correspondence dispatched from their branches.

3.3 Each day the Manager of a branch and Head of the Division/ Department in Head Office will examine the office copies of all letters dispatched in the previous day and satisfy themselves that the letters are in order in all respects. The copies of letters will then be filed in the respective files of the subject which must be carefully indexed daily in such manner that any letter can be readily traced out when required. All letters after their filing in the respective files should be given page number serially and cross-references where necessary.

3.4 Necessary entries should be made in the Letter Dispatch Register (B-17) in respect of outward mails in which some information is called for or some further action is required to be taken. The Office copies thereof will be marked to the concerned official for filing and follow up.

3.5 Managers will be extremely cautious in giving confidential opinions on constituents to other banks. All written opinions should be sent on prescribed form and the estimated means etc. should ordinarily be furnished in general terms.

4. Subject Heads:

The subject matter should be mentioned precisely at the beginning of the letter. Each letter addressed to Head Office or Branches should not normally contained more than one subject matter. The number of enclosure should be given at the bottom left hand side.

5. Typing Of letters

Normally letters should be typed/computerized in triplicate, if more copies are not otherwise required. The original should be typed on letter head and duplicate and triplicate copies on plain paper. When endorsement of the letter is given, that should also typed on letter head. The name of the Manager/Officer, who will sign the letters, should be typed above his designation. Telephone numbers of the / Division / Department should be typed under the name and designation.

6. Signing of Letters & useOf Envelopes:

The Manager or any other authorized Officer should sign the letters with date. Letters and statements should be sent in closed envelopes of appropriate size and window envelopes should be used as far as possible for ordinary mails, if supplied from the Stationery Department branch . Address of customers should be written neatly or typed on the envelopes.

7. Receipt ofLetters

The Managers of the Branches and Heads of Division / Departments in the Head Office should open all inward mails excepting the letters addressed in the personal names of officers and they will mark the letters to the dealing officers.

7.1 Letters addressed in the personal names of the officers should be opened to whom the letters are addressed to. If such letters are official, they should be passed on to the Department/Section concerned for necessary action.

7.2 All the letters either confidential or otherwise should be recorded in the Inward Mail Register. Registered and confidential letters should be

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recorded in the Register under direct supervision of the Manager or an authorized officer.

7.3 After receipt, all letters should be stamped with date of receipt and running serial numbers of Inward Mail Register.

7.4 Enclosures, if any, received along with the letters should be carefully checked, counted and written in the specific column of the Inward Register. In case of local deliveries, where it is not possible to count and check the enclosures on the spot, receipt will be given to the delivery peon with the remarks as “Contents not checked”.

7.5 Cheques, Drafts, Pay Orders, FDD(s) and other instruments received for collection should be crossed with Bank’s special crossing stamp and immediately be given to the concerned officer against proper acknowledgement and particular of these instruments must be entered in the subsidiary Day Book instantly.

7.6 All inward letters should be sent to the concerned officers/Sections/ Departments/ Divisions immediately after recording them properly in the Inward Mail Register . The signature of the concerned officer will be obtained in the specified space provided for in the Inward Register( B –69).

7.7 The concerned official of the Department should record disposal of letters in the Inward Register. For this purpose, the dealing official of the respective Departments will collect the Inward Register from the Dispatch Section and record the disposal in the appropriate space of the Register.

7.8 Closed envelopes received over the counters will be acknowledged by affixing Bank's round stamp with initial and date.

7.9 The official handling Inward Mail will prepare a list of letters pending for more than 10 days from the register and submit to the Manager of the branch or the Head of the Department/Division in Head Office as the case may be every fortnight with comments.

8. Dispatch ofLetters:

Letters issued from various Departments/Sections will bear their reference number and an outward serial number will be given by the dispatch Section. The Officer-In charge of the Dispatch Section must ensure prompt dispatch of the letters.

8.1 Postage stamps used will be checked carefully by the Officer-In charge of the Dispatch Section by physical verification of the same with the relative Dispatch Register (B-17).

8.2 To ensure dispatch of the letters to the correct address the authorized official of the Dispatch Section must check the address written on the envelope with the address written on the letter inside the envelope before it is closed.

8.3 For the purpose of expenses towards postages and telegram charges a fixed amount of cash should be drawn by In charge of Dispatch Section at the beginning of each month to the debit of Suspense Account with the approval of the competent authority and proper account thereof should be maintained at Dispatch Register (B-17). The postage stamps should be purchased and kept in the custody of the In-charge of the Dispatch Section and it should be balanced daily. Proper record of the postages consumed and telegram charges incurred should be maintained and Suspense Account be adjusted to the debit of "Expenditure Account Postage/Telegram Charges" for the actual amount incurred and refund of unused balance in cash at the end of the each month.

09. Nature of Dispatch

Normally Letters are dispatched through Postal Dept. in the form of Ordinary, Registered, Registered Parcel, Under Certificate of Posting (UCP), Book Post, (ordinary/registered), Guaranteed Express Post (GEP) for inland service and

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Emergency Mail Service (EMS) for abroad, Besides, Courier Services for Domestic and Foreign may be used for the purpose for which separate Register (B-17) may be used.

10. InwardTelegrams:

Inward Telegrams received should be entered in the Register and delivered to the concerned officials of the Departments/Sections against their acknowledgment with date in the Register.

11. OutwardTelegrams:

All outgoing telegrams should normally be recorded in Telegram Dispatch Register. The messages are prepared in triplicate, original on the form prescribed by the Telegraph Department, second copy on Bank's letter head as confirmation copy and the third one for office record. Extra copies may be taken out if necessary. All outgoing telegrams should be recorded in and given running serial numbers. The telegram in the prescribed form along with its charges should then be sent to the Telegraph Office and receipt obtained. The receipts should be filed in the Outward Telegram file. Cash expenditure for sending telegrams should be noted in the Telegram Dispatch Register and the daily total of the expenditure will be brought forward to Dispatch Register (B-17) to give due effect of the expenditure.

CHAPTER-VII

General Services

1. Introduction: General Services Department (GSD), Head Office (HO) will provide all required logistic support to Head Office & Branches. The logistics include accommodation, furniture, fixture, telephone, Fax, Telex, printing stationery, security stationery, table stationery, computer accessories, transport, fire arms, fire fighting supports, mechanical & electrical appliances like Electrical Sub-station, Generator, Note counting machine, Fake note detector machine, CCTV, Air-conditioning system, Building Management System, Deep tube-well & pump etc. and their maintenance. GSD will also provide security services to Head Office and Branches after proper approval from the competent authority of the Bank.

1.1 Premises: The premises either owned or hired shall be made available for accommodating branches, offices and godowns of the Bank. The premises chosen for hiring/renewal should be suitably located quality one in the most warranted business centre desired by the highest number of clients at a competitive rate of rent duly approved by Head Office. The hired premises should be measured physically and the documents related to the premises should be preserved properly. While taking measurement, useable space/covered area of the floor space and staircase exclusively using by the Bank may be taken into consideration for calculation of rent. A copy of measurement of the floor space should be submitted to HO for record. Allowing of advance rent be avoided as per as possible. However, where payment of advance rent cannot be avoided, the same rent should be limited equivalent to 36 months rent at the highest or as per decision of the Management as and when required.

1.1.1 Bank’s Head Office premises will be decorated and maintained by GSD; but in case of hired premises of the Branches will be dealt by the Branches as per instruction of Head Office. The Managers/Incumbent must see that the premises of the Bank are kept neat & clean and in good order. When extension or repairing of the premises become necessary, the

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Manager/Incumbent shall pursue landlord to get the things done with a copy to Head Office. In case of own property all related papers/documents of the premises will be kept with GSD, HO duly recorded in the Branch Documents Register (B-26) with a copy to the Branch Incumbent. But in case of hired premises the same will be kept with the Branch Incumbent duly recorded in the register with a copy to GSD, HO. It may be mentioned here that the proposal for renewal/shifting of branch premises on account of hired premises should be submitted well ahead for consideration of Head Office.

1.2 Procedure for Procurement, Maintenance of Bank’s OwnProperty (Land & Building)

The Bank's own property/properties for the use of Head Office/Branches should be under well defined policy based on cost and benefit analysis by the competent authority specifying the functional obligations of different Departments/Divisions of Head Office & Occupying Branches/Offices in discharging various related functions of the entire process of accounting and maintenance thereof.

1.3 Appraisal & Management approval:

GSD of Head Office will be responsible for maintenance, effective and profitable use of Bank's property. They will appraise the proposal for purchase of immovable properties for the Bank, renovation and repairs of the existing one. They will examine the nature and value of the property and shall put up for consideration & approval of the competent authority with a statement on cost and benefit perspective on short term & long term basis.

1.4 Registration After getting the approval from the competent authority, all documents will be sent to the Bank's Panel Lawyer for examining the genuineness of ownership of the seller, title deeds, legal encumbrances and for completion of Registration and mutation formalities in full. After registration, the entire documents have to be sent to GSD of Head Office for maintenance and safekeeping.

1.5 Preservation of Documents and Other related Papers:

All original documents including original title Deed, Rent Receipt etc. (the Registered Deed(s)is/are to be procured in time from the office of the SubRegistrar in exchange of the Receipt supplied by them) will be kept by GSD only duly recording the same in the Documents Register (B-26). One set of duplicate copy of the said documents, will be retained with the respective branch/offices.

1.6 ConstructionWorks/Technical works/Repairs/Renovation and installation of ElectroMechanicalItems:

Construction works/technical works/repairs/ renovation works and Installation of Electro-mechanical items like Electrical sub-station, Lift, Air conditioning system etc. will be done by the GSD of Head Office. In this regard all required formalities including approval of the competent authorities should have to be obtained.

1.7 Rent or any Other Income from the Land building:

The optimum utilization of every inch of Bank's property is ensured. Rent of the Bank's properties (Land & Building) will be determined by GSD of Head Office in consultation with the In charge of the Branch on the basis of prevailing market rate. GSD will recover such income. The concerned Branches will remit the amount of rent fixed by Head Office for use of Bank's properties on monthly basis to GSD by means of IBCA(s) in favour of GSD. of Head Office to be issued on FAD of Head Office. In the same manner, Head Office will recover rental income from other tenants, if any, through the concerned office/branches. Lease agreement of the land and building with tenants, if any, will be executed by the concerned branches/offices

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on behalf of the Bank with the approval from Head Office.1.8 Accounting of

Real EstateProperties:

All the Real Estate Properties of the Bank will be accounted for in the Books of FAD, Head Office, Consequently, depreciation will be charged by FAD, Head Office at the time of Annual Closing as usual.

1.9 Operation &Maintenance:

Operation, Maintenance & Servicing of Electro-mechanical items (like Electrical Sub station, Passenger lift, Air-conditioning system, Building Maintenance system, Deep Tube-well, pump etc.) will be done by GSD. All maintenance expenses of Bank's Real Estate properties including payment of Electric bill, Gas bill, Municipal Taxes, Land revenue and other charges (used by the Head Office) will be paid by Head Office. In case of premises used by the branch or other tenants, electricity bill, gas bill, water bill and other charges will be borne by the concerned branches/ offices/ tenants. But Municipal taxes, Land revenue and other taxes, if any, will be initially paid by the respective branches/offices which will be subsequently be reimbursed from Head Office. The Branch/office shall in no case employ any supervisor/Guard on account of the properties without prior approval from Head Office. All correspondences, whatsoever, in this connection, should be made with GSD Head Office, Dhaka.

2. Purchase & Supply ofFurniture, Fixture, LibraryAnd Mechanical appliances:

It is the responsibility of the Head Office GSD to purchase and supply all Furniture/Fixture, mechanical appliances, and other logistics required for the branches/offices against submission of indent/requisition. For this purpose, Head Office will-prepare list of approved suppliers by inviting applications with required particulars from the intending Firms through advertisement in two National dailies or local quotations or any other means deemed to be suitable. While preparing the list of approved suppliers the genuineness of the supplier and their location, experience and capability will be examined and verified by a committee. A purchase committee should be constituted consisting of 5 (five) members headed by DMD or any other executives consisting of member secretary of the concern department with a technically expertise as a member approved by the competent authority. The Purchase Committee will submit their recommendation to the GSD after thorough examination/ scrutiny of the tenders. The tender should for specified item(s) to which competition will be limited. The expenditure in this connection will be approved by the competent authority as per schedule of the delegation of power.

2.1 Record of Furniture, FixtureAnd Library Articles:

All Furniture, Fixture Mechanical appliances and Library Articles forming part of Bank's furniture including Note counting machines, Generator, AC(s), Type-writers, Telephone sets, Telex, Fax, Computer etc. should be recorded in the Dead Stock Register (B- 22) in which dates of purchase and original cost should be recorded, GSD will provide a standard list of furniture, fixture & with prefix of each item for use of the branches/offices. At the respective offices and branches all such furniture should be serially numbered with a prefix indicating the name of the Bank and furniture.

2.2 Repairs ofFurniture and Fixture:

Care must be taken to ensure that all furniture are kept in good condition. When additions, replacements or repairs are necessary, estimates should be submitted to Head Office and their sanction must be obtained for executing the work, beyond financial powers of the branch Incumbent.

2.3 Furniture,Fixture & Library Account:

Financial Administration Division (FAD) of Head Office will maintain consolidated Head-wise accounts for Furniture(s), Fixture Account of various Departments/Divisions of Head Office in the General Ledger. The head of account includes furniture, almirah, file cabinets, mechanical appliances, vehicles, books etc. supplied/to be supplied by the Head Office GSD to the Departments/Divisions of Head Office. Similarly GSD will maintain a separate

4

Register of Furniture /Articles already supplied, to be supplied/acquired by the Departments of Head Office /Branches. The concerned offices/branches will also maintain their own Register for furniture and fixture. The FAD (HO) shall maintain branch-wise/office-wise position of furniture, fixture and library articles with purchase cost, yearly depreciation charge, depreciated value etc. have control over the Branches account for the same.

2.4 Payment of Bills On furniture, Fixture, LibraryArticles and Premises:

The following instructions should be followed in respect of payments on account of premises and Furniture/Fixture articles: acquired/purchased/sold/used.The cost of Bank's own premises i.e. lands and buildings and all additions, major renovations and electric fittings will be debited to 'Premises Accounts' but all subsequent expenses incurred for maintenance, repairs, renovations, painting, colouring and white washing etc. will be debited to Expenditure A/C. under sub-head 'Repairs to Bank's property'.

Cost of repairs or renovations to Bank's rented property should be debited to Expenditure Account under the sub Head "Repairs to Rented Property." after getting approval from the Head Office.Cost of all Furniture, Fixture articles should be debited to Furniture, Fixture Account. Cost of small articles worth. Tk.1000/- or less and also small mechanical equipment e.g. small calculators etc. may however be debited to Expenditure Account - 'Miscellaneous’

Original cost of motorcars and other vehicles should be debited to Fixed assets – Vehicle and car Account.

Cost of repair to all Furniture & Fixture except vehicles should be debited to Expenditure Account under the sub head "Repairs to Bank's Property", Cost of repairs to Motor Vehicles and cycles should be debited to Expenditure Account under the sub head "Expenses on Motor Cars or vehicle".

Packing charges, freight or other carrying charges etc. in respect of Furniture & Fixture articles, if any should be met by debit to " Expenditure Account" 'Miscellaneous' at the receiving offices/branches.

2.5 ArticlesPurchasedLocally:

If any office or branch at a place other than Dhaka City is authorized by Head Office to make any local purchase of Furniture & Fixture Articles, particulars of these articles should be informed to Head Office, GSD in details including unit price to authority of purchase. This implies that the particulars of the Furniture & Fixture Articles purchased locally by the Offices/Branches will also be taken into the Dead Stock Register (B- 22) maintained centrally at the Head Office.

3. Motor CarsAnd other Vehicles:

Bank's transports (New/reconditioned) may be procured on competitive price through enlisted Firms or through advertisement or as decided by the Management as per procurement procedure of furniture, fixture and mechanical appliances on the basis of the requirement/entitlements to be fixed by the Management duly guided by Bank's Transport policy in force. The vehicles so purchased may be distributed to Executives, offices/branches with the approval of the Management. The users of the transport particularly the Executives/Officials of the bank as well as the drivers in question have the primary responsibility of routine maintenance/servicing and to see that every thing are O K. before the same starts.

4. Sale proceeds/Disposal of

Any disposal/sale of obsolete/unusable dead stock articles must be with the prior approval of Head Office, Dhaka. Sale proceeds of any items

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Old/unusableItems:

(old/unusable) will be credited to the "Proper Head of Accounts”. If the amount of the sale proceeds is in excess of the book value of the articles, the amount equivalent to the book value should be credited to Proper Head of Account and the excess amount should be credited towards "Other Income Account". If, however, the amount of the sale proceeds is less than the book value of the article, the short fall will be debited to Expenditure Account under the sub head 'Write Off Account" and the sale proceeds together with the amount so debited to Expenditure Account should be credited to Proper Head of A/c. If the written down value of the discarded items cannot be ascertained the sale proceeds may be credited to Misc. Income A/c.

In order that there should be no items in transit on account of dead stock articles at the end of the year. The Offices/Branches should make endeavor not to debit or credit Head Office through SIB General Account for dead stock article after 15th December. Payments or receipts, when unavoidable after 15th December, the fact should be telegraphically advised to the Branches/Offices if they are of Tk.2,000/- or more; other wise they should be debited to Suspense Account or credited to Sundry Deposit Account until the opening day of the new year.

5. Rate of Depreciation

Early in December of each year depreciation on the Bank's dead stock articles will be calculated item wise duly recorded in Dead Stock Register (B-22 ) and applied by the Head Office (FAD) / branches/ offices at the following rates on or before 26th December each year to the Debit of expenditure A/C. Depreciation of Bank's property and credited of the concerned asset(s) account.

i. Premises A/c. (on the total value of land & building)

2.5% Reducing Balance Method

ii. Furniture/Fixture, A/C.(on the present book value)

10% Reducing Balance Method

iii. Mechanical Appliances (on the present book value)

20% Reducing Balance Method

iv. Library & Books A/C. (on the present book value)

10% Reducing Balance Method

v. Decoration 10% Reducing Balance Method

vi. Motor Car, Motor Cycle, Baby Taxi/Scooter(on the original cost).

20% Straight line method

If the book value of the item becomes nil through charging depreciation, at least Tk. 1 (one) to be retained as book value against each item to identify the item, if the same is usable till disposal thereof.

6. Fire-Extinguisher

Every Branch must have sufficient number of fire extinguishers both in the Branch premises and banks godown (own/hired). There should be some bucket also with full of sands and water for emergent use to be placed in a suitable place for handling in case of need. The fire extinguishers should be refilled before due date/expiry of the same. The cost of refilling be debited to Expenditure A/C (Miscellaneous). Every officials/staffs should know how to operate the same. If require, the office/branch may take the help of local Fire services and Civil Defense office for necessary training in this regard.

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8. Printing &Supply of Printing Stationary:

GSD will arrange printing and supply of printing stationery & security items i.e. Cheque, Payment Order, Demand Draft, Bonds etc. against proper requisition by the Deptt. of Head Office, & Branches. The printed stationery items should be kept/preserved systematically. Security instruments should be kept/preserved under the custody of GSD at Head Office. The Security instruments should also be kept under the custody of joint custodian at the branch level and to the authorized Officer while issuing to the customers duly recorded in Stationery/Security Stationery Register (B-14) and concerned Issue Register. The Manager must take special care in handling the Security Stationery at the branch.The procurement of the stationery items may be done through enlisted Firms or through advertisement or as decided by the Management in the light of procurement procedure of the Bank.

8.1 StationaryAccount at Head Office:

The GSD, Head Office will, on receipt of the printing stationery and Security items like Cheque Book, Pay Order, D.D., Bonds etc from the printers shall enter the same item-wise in separate folio of the Stationery/Security Stationery Register (B-14). The supplier's bill will be paid by passing following Accounting entries:

Dr. Stock of Stationery in Hand Account. Cr. Supplier's Account.

At the time of supply of stationery item and security items to the offices and Branches as per their indents, General Services Department, Head Office will record the same in the Stationery Register (B-14) and pass the following Accounting entries:

Dr. SIBG A/C. (Branch).Cr. Stock of Stationery in Hand Account.

The Offices and Branches on receipt of the stationery and security items from Head Office will record the same item wise in separate folio of the Stationery/Security Stationery Register (B-21) and pass the following Accounting entries to respond the concerned IBDA of HO on the subject:

Dr. Stock of Stationery in Hand Account Cr. SIBG Accounts, Head Office.

Periodical issue of stationery and security items for consumption will be entered in the Stationery/Security Stationery Register (B-14) but no accounting entries in respect of consumption will be passed by the offices and branches in piecemeal. At the end of each half-year an inventory of stock shall be prepared and accordingly consumption Voucher shall be passed by reducing the stock (item-wise) consumed from stock in hand and Book Value thereof by passing the following entries:

Dr. Expenditure Accounts (Printing and Stationery)

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Cr. Stock of Stationery in Hand Account.

9. TableStationary

The items of Table Stationery may be procured by GSD through enlisted suppliers or cash purchase from the open market at the competitive price by a Committee consisting of Officials of the Bank duly approved by the Management. The distribution may be made to the Departments, Division, etc. against monthly requisition submitted by them at Head Office. The branches will also procure to meet their requirement as per delegation of powers in force.Stationery required by different Departments/Sections each month should ordinarily be issued during the last week of the preceding month but care must be taken to ensure that the articles are not spoiled or misused. As a rule, rulers, rubber stamps, pads, refillable pencils, stainless steel knives, pencils and similar other articles should be issued against return of the worn out or damaged articles which should be destroyed when new articles are issued.Each employee's requirement will be entered in Stationery Register (B-14) which will be authenticated by a responsible officer after he has satisfied himself that the issues are necessary. The employees concerned will thereafter initial in the Stationery Register for the articles issued to them.

9.1 Stationary Indent andInventory

The Bank's standard Books/Forms will ordinarily be used at all offices and branches. If any modification in the standard Books/Forms is necessary to meet local requirements, the same must be got approved from the Head Office before use/introduction. If necessary, GSD, Head Office may also print such additional Books/ Forms and branches may also require any item with modification for use in their respective offices but such books should normally be supplementary to and not in substitution of the Bank's standard Books/Forms. These instructions apply with equal force to the Bank's standard forms. When a standard form is not in frequent use, Managers may arrange to get required copies cyclostyled/photocopied instead of indenting for a printed supply. A list of standard Books/ Registers/ Forms and Vouchers is shown below.The offices/branches will prepare indents for stationery for use during the next year and will submit them on quarterly basis in the month of February, May, August and November positively to the Head Office GSD. Submission of indents besides the above period should be avoided except in exceptional circumstances. Item wise inventory of all Stationery & Security instruments for Offices/ Branches will be done by December 15 of each year and be maintained & recorded in the Stationery Register.It is impressed upon Managers that their annual indents must be as accurate as possible. In order to avoid surplus stocks which are unnecessary, and at the same time to reduce supplementary indents, which involves additional work and expenses since any supplementary indents involves additional work and expenses, if any supplementary indent becomes unavoidable, it should be addressed to the Head Office GSD and it should invariably be stated, if any of the articles are urgently needed to be sent by special Messenger /Rail/ Agent/Courier Service.In respect of consignments of stationery received, the following procedure will be followed at the receiving branches/offices.Branches will receive the advice of stationary despatched followed by a priced invoice of stationery, in duplicate, in respect of every consignment. They will verify the consignment received with the relative invoice and will return the duplicate invoice duly receipted under the signature of the Manager to the Head Office GSD. If any discrepancy

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is found in a consignment it should be pointed out immediately in a covering letter to the In charge, GSD, Head Office, Dhaka.The date of receipt, description and value of stationery articles, amount of packing and forwarding charges, if any, and total of each invoice will be entered in the Stationery Register (B-14). Particulars of the stationery articles should also be entered in the Stationery Register (B-14) item wise.The aggregate invoice value of stationery received will than be debited to 'Stock of stationery in Hand' account that will credit the SIB. General Account through responding the IBDA, sent by the GSD in this regard. Packing and forwarding charges, if any, should be debited to Expenditure AIC. 'Stationery'.The attention of Head Office (GSD) should be drawn to any discrepancy, which may be found in books or forms supplied by them. Any stationery received by a branch in error, if any, should not be returned to GSD without prior reference as in many cases the cost of freight or postage exceeds the value of the stationery.

10. Custody andIssue of StationaryArticles:

All blank cheque books, MTDR, DD, PO, FDD, MMPDR, MND, other Bonds & Drafts will be duly stamped with Branch seal on each leaf immediately after receipt of the same. Bangladesh Bank/Sonali Bank Cheque etc if any will be kept in the custody of the Manager or the Second Officer jointly with another authorized officer who will check the number of leaves in each book upon receipt and initial on the covers thereof in token of having done so. The first and last serial numbers printed in each cheque book will be entered in the Cheque Book Issue Register (B-13) in which particulars of its issuance will be subsequently recorded as and when Cheque Books are taken out from the stock for issue to the customers. The stock of all these items of security stationery should be maintained in separate portion of the Cheque Book Issue Register (B-13). If necessary, a separate Register may be used for the purpose. The first and the last numbers in each book will be entered under the appropriate headings in the register. Date of issue and number of Books issued will also be subsequently recorded and balance of the stock drawn and authenticated under the initials of the Manager and authorized Officer. The Manager should verify the stock of these Books/Forms or an officer authorized by him for the purpose frequently at least once in a month. If any of the leaf in stock of those taken out for use is found missing the branch will immediately advise full particulars of the same to the Head Office (GSD) who will intimate the loss to all other Zonal Offices and branches. These particulars will on receipt be acknowledged and branches in their Stop Payment Register and in the stop payment list of Passing Officials. The branch name rubber seal to be used on the security stationery should be special/exclusive one for the purpose and be kept securely.All stationery articles must be kept under lock and key and under the charge of an authorized officer who will issue such articles only on written authority of the Manager or the Second Officer if authorized for this purpose.The stock of Cheque/forms and similar other valuable stationery should be kept in Locked Almirah in the strong room. ,The name of the branch must be clearly impressed upon on each leaf of security forms before they are issued for use.

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Obsolete books and forms should be utilized for other purposes as far as possible. Obsolete or spoiled stationery may be written off from the Stationery Account only with the prior approval of the Head Office.

11. RubberStamps and Seals:

Rubber Stamps and Seals should be uniform at all branches/offices as far as practicable. For this purpose, the GSD, Head Office may arrange supply of necessary stamps to the branches. Alternatively branches may procure impressions of standard rubber stamps from Head Office and get them prepared locally subject to approval of the Head Office.Offices and branches shall maintain a Rubber Stamp Register wherein impression of all stamps maintained by them should be recorded as specimen of the same. The Register should remain with the Manager or an authorized officer. Whenever any stamp is discontinued, it is to be destroyed and such destruction is to be noted in the register under the signature of the authorized official in whose presence it is destroyed.

12. Liveries All confirmed Sub-staff of the Bank are entitled to get liveries viz. 2 sets of Summer uniform, one pair of shoes once-in every year and one set Winter uniform once in every 3 years and one umbrella once in every 2 years as per norm in force. For the purpose of convenience HO may authorize branch for purchase of the articles as per specification and rates duly approved by the management (Head Office). The Sub-staff must wear the -uniform supplied by the Bank while on duty. The concerned incumbent of the branches should ensure the same.

13. Preservation & destruction ofold records

With the ageing of the branches records are being heaped up demanding more space for storage. Since all records are not required to be kept permanently as they may not be required for reference purposes for eternity, therefore, most of the records shall have to be disposed of after a certain period and some records shall have to be preserved permanently for future reference.

13.1 General Instructions:

All records, files, register which are not currently in use must be stored suitable racks placed in the store room/strong room/godown after making necessary entries in separate folios for each type of records in the Old Records Register.

13.1.1 Old records should be stacked in such a way that the same can easily be located and found out as per sequence.

13.1.2 Records for permanent preservation including files of peculiar nature/disputed matter/relating to litigation shall be stacked separately preferably in Steel Almirah / Steel Trunk,

13.1.3 At the end of each year, old records, after the expiry of the date of preservation, shall be disposed of by selling out through auction and sale proceeds thereof may be deposited towards "Benevolent Fund of the Employees". They shall also certify to the effect "The records as appended below/as per list attached have been sold in our presence on... . The Certificate must be retained in the Branch Document file duly recorded in Branch Documents Register (B-26) for perusal of the Bank's inspection team.

13.1.4 An In-charge for preservation of old records shall be nominated by the Branch Manager and he shall be mainly responsible in this regard.

13.1.5 A list of old records for permanent preservation and preservation for specific period is furnished below along with the list of standard Books and Forms of the Bank for ready reference in case of need.

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A. LIST OF BOOKS TO BE PRESERVED FOR SPECIFIC PERIOD

Sl.No. Particulars Code No.

(Book No.)Period of

Preservation01 Suspense/Sundry Deposit Account Register B – 3 3 Years02 Income & Expenditure Ledger B – 5 3 Years03 Bank Transfer Scroll B – 6 2 Years04 Cashier’s Receipt Book B – 7 3 Years05 Cashier’s Payment Book B – 8 3 Years06 Clearing/Transfer Delivery Register B – 9 3 Years07 Attendance Register B – 10 3 Years08 Peon Book B – 11 2 Years09 Stationary/Security Stationary Register B – 14 3 Years10 Payment Orders Account Register B – 15 3 Years11 Mudaraba Term Deposit Register B – 16 3 Years12 Letter Dispatch Register B – 17 3 Years13 Cash Balance Book B – 19 3 Years14 Token Register B – 20 3 Years15 Registry/Courier Letter Despatch Register B – 21 3 Years16 Dead Stock Register B – 22 2 Years17 Ledger Balance Book B – 23 3 Years18 Insurance Policy Register B – 25 3 Years19 Salary Register B – 27 3 Years20 Clearing House Book B – 28 3 Years21 Drafts Payable Register B – 29 3 Years22 DD/TT Issue Register B – 30 3 Years23 Outward Bills Collection Register B – 31 2 Years24 Inward Bills Collection Register B – 32 3 Years25 Stock & Delivery Register of goods B – 34 3 Years26 Guarantee Issue Register B – 35 5 Years27 Leave Record Register B -37 7 Years27 L/C. Opening Register B – 56 5 Years28 Petty Cash Register B – 44 1 Year29 IBDA/IBCA Register B – 45 5 Years30 Due Date Diary B – 46 3 Years31 Investment Account Opening Register B – 47 7 Years32 Cheque Return Register B –50 7Years33 Inward Foreign Bills Register B – 51 3 Years34 Export Register B – 52 5Years

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35 Foreign Bill Negotiation/Collection Register B – 55 3 Years36 Letter of Credit Liability & Security Books B – 56 5Years37 Foreign Currency Ledger B – 57 3 Years38 L/C Opening Register B – 58 5 Years39 FBN/FBP Ledger B – 60 3Years40 Travelers Cheque Issue Register B – 61 5 Years41 Log Book for Bank’s Vehicle B – 65 3Years42 Foreign Bill Purchase/Negotiation Register B – 67 5 Years43 Register of Share Transfer B – 70 3 Years44 Export Performance Register B – 71 5 Years

All other files To be destroyed as per decision of

the dealing officer and

Incumbent-in-charge within 2

years.

B. List of old records to be preserved permanently.a. FILES:Sl. No. Name of the Files1. Vochers2. A/C. Opening Forms (Running)3. A/C/ Opening Forms (Closed) with specimen signatures card.4. Personal Files of Employees.5. Head Office Circulars.6. Bangladesh Bank Circulars.7. Inspection Report (Internal).8. Inspection Report (Statutory Auditors).9. Inspection Report (Bangladesh Bank).10. Classified Investment Files/Non-Realized Investment A/C. Files.11. Fraud & Forgeries12. Furniture & Fixture 13. Vehicles14. Premises (Tenency Agreement/Title Deed).15. Any other Files as may be considered to be preserved by the Manager.

b. BOOKS:Sl. No. Name of Books (Code No.)1. Account Opening Register (all kinds) B –122. Cheque Book Issue Register (all kinds) B – 133. Key Register B – 244. Locker Register B – 1055. Document Register B – 266. Share Application & Allotment Register B – 367. Register of Member/Share B – 388. Register of Directors B – 399. Any other Books & Registers considered

To be preserved by the Manager

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B. LIST OF BOOKS:

Sl No Item Code Item name

01 AD-01 Booklet-Cash Waqf- Beng. 02 AD-02 Booklet-Cash Waqf- Eng. 03 AD-03 Brochure-Cash Waqf-Beng. 04 AD-04 Brochure-Cash Waqf-Eng. 05 AD-05 Brochure- Hajj/Umrah06 AD-06 Brochure on Installment Credit07 AD-07 Brochure- Mudaraba Monthly Profit Deposit Receipt08 AD-08 SIBL Parichiti-Bangla09 AD-09 SIBL Parichiti-English10 AD-10 SIBL Folder11 AD-11 Sheba Paksha Parichiti12 AD-12 Brochure on Half Yearly A/c 13 AD-13 Brochure on Family Empowerment Micro Credit Program14 AD-14 Brochure on Family Empowerment Micro Enterprise Program15 AD-15 Brochure on Mudaraba Millionaire Deposit Pension Scheme16 AD-16 Brochure on Mudaraba Education Savings Scheme17 AD-17 Brochure on Mudaraba Monthly Savings Scheme18 AD-18 Brochure on Mudaraba Special Deposit Pension Scheme19 AD-19 Brochure on Mudaraba Basasthan Sanchaya Scheme20 B-01 AWCD a/c Ledger21 B-02 MSD Ledger22 B-03 Suspense/sundry a/c Register23 B-04 Clean cash/general Register24 B-05 Income & Expenditure Ledger25 B-06 Bank Transfer Scroll26 B-07 Cashiers' receive book 27 B-08 Cashiers' payment book28 B-09 Clearing Register29 B-10 Attendance Register30 B-11 Peon Book31 B-12 Account opening Register32 B-13 Check Book issue Register33 B-14 Stationery Register34 B-15 Payment order Register35 B-16 MTDR Register36 B-17 Letter dispatch Register37 B-18 Progressive Balance Book

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38 B-19 Cash Balance Book39 B-20 Token Register40 B-21 Registered Letter dispatch Register41 B-22 Dead stock Register42 B-23 Ledger Balance Book43 B-24 Key Register44 B-25 Insurance policy Register45 B-26 Documents Register

Sl No Item Code Item name

46 B-27 Salary Register47 B-28 Clearing house book48 B-29 Draft payable Register49 B-30 DD/TT/MT issue Register50 B-31 OBC Register51 B-32 IBC Register52 B-33 TT payable Register53 B-34 Stock & Delivery Register of goods54 B-35 Guarantee issue Register55 B-36 Share application & allotment Register56 B-37 Leave record Register57 B-38 Register of members/share holders58 B-39 Register of Directors59 B-40 Cash remittance Register60 B-41 General Investment Register61 B-42 Vehicle record Register62 B-43 Petty cash Register63 B-44 Bills Liabilities Register64 B-45 IBCA/IBDA Register65 B-46 Due date Register66 B-47 Investment a/c opening Register67 B-48 Document Execution Register (Investment)68 B-49 Voucher Register69 B-50 Cheque return Register70 B-51 Inward Foreign Bills Register71 B-52 Export Register72 B-53 Ledger for foreign currency held against back to back L.C.73 B-54 Register of L.C. Established by Foreign Banks74 B-55 Foreign Bills Collection Register75 B-56 L.C. liabilities & Securities Register76 B-57 Foreign Currency ledger 77 B-58 Import L.C. opening Register78 B-59 Investment ledger- Small79 B-60 Foreign Bills purchase/negotiation Register80 B-61 Travelers Cheque Issue Register 81 B-62 Bank ledger82 B-63 Foreign Currency current a/c deposit Register

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83 B-64 Marginal Deposit ledger84 B-65 Log book of vehicles85 B-66 Godown key movement Register86 B-67 FBN/FBP ledger87 B-68 Outward F bills Register88 B-69 Inward letter receipt Register89 B-70 Register of share transfer90 B-71 Export performance Register

Sl No Item Code Item name91 B-72 Safe in Safe out Register92 BB-01 Advance Receipt Voucher93 BB-02 CIB form Segment –194 BB-03 CIB form Segment –295 BB-04 CIB form Segment –396 BB-05 CIB form Segment -497 BB-06 CIB form Segment -598 BB-07 Classification of Deposit form SBS-299 BB-08 Classification of Deposit form SBS-3

100 BB-09 Export Forms101 BB-10 Form "C"102 BB-11 Monthly Credit Schedule of Tk 1 00 crore (Increased) and

advice103 BB-12 Monthly Statement of Advises & Inland Bills

Purchased/Discount for the month Ended Input No-3104 BB-13 Schedule A-01/0-1105 BB-14 Schedule A-02/0-2106 BB-15 Schedule C107 BB-16 Schedule D108 BB-17 Schedule E-2/P-2109 BB-18 Schedule E-3/P-3110 BB-19 Schedule E-4/P-4111 BB-20 Schedule FCS-7112 BB-21 Schedule EFCS-8113 BB-22 Schedule IRV-1/0-4114 BB-23 Schedule J-01/0-3115 BB-24 Schedule P116 BB-25 Statement s-1117 BB-26 Statement S-1 for EPZ118 BB-27 Statement s-2119 BB-28 Statement s-3120 BB-29 Statement s-4121 BB-30 Statement s-5122 BB-31 Statement s-6123 F-01 AWCD A/C Opening Form124 F-01A Papers/ Document Opening AWCD a/c125 F-02 MSD a/c Opening Form126 F-03 Specimen Signature Card

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127 F-04 MTDR a/c opening Form128 F-04A MMPDR a/c opening form129 F-04B Hajj/Umrah a/c Opening Form130 F-05 Cheque Requisition Slip131 F-07 Deposit Pay in Slip132 F-08 Debit Voucher (white)133 F-08A Debit Voucher (fanfold for client a/c)134 F-09 Credit Voucher (Green)135 F-09A Credit Voucher (fanfold for client a/c)

Sl No Item Code Item name136 F-10 Objection memo for Cheque Return137 F-11 Statement of a/c form (Size: 9 5in X 11 in)138 F-11A Statement of a/c form (Size: 9 5in X 5 5in X 11 in)139 F-12 List of Cheque/Bills for Clearing House140 F-13 Cheque/Bill Forwarding Letter/ OBC Form141 F-16 Mandate Form142 F-17 TT Application Form143 F-18 TT/Draft/PO cost memo144 F-19 Weekly Schedule Telegram145 F-20 IBCA146 F-21 IBDA147 F-23 Stationery Requisition Form, Big 148 F-23A Stationery Requisition Form, Small 149 F-24 Statement of Affairs150 F-25 TA Bills form151 F-26 Daily Cash position Slip152 F-29 Statement of Provisional Income & Expenditure153 F-30 Letter of thanks154 F-35 Daily SIB General a/c Statement (OE)155 F-35A Daily SIB General a/c Statement (Responding )156 F-36 Supplementary Sheet Big157 F-36A Supplementary Sheet 158 F-37 IMP form159 F-38 Form T/M160 F-39 Foreign Exchange Debit Voucher161 F-40 Foreign Exchange credit Voucher162 F-41 IBDA (Foreign Exchange )163 F-42 IBCA (Foreign Exchange )164 F-43 Application for Demand Draft165 F-44 Application for Pay Order166 F-45 Denomination Slip167 F-46 Locker a/c opening form168 F-47 Specimen Signature Card (Locker a/c)169 F-48 Mudaraba Shiksha Sanchaya Scheme Form170 F-49 Mudaraba Special Deposit Pension Schemes form171 F-50 Mudaraba Millionaire Deposit Pension Scheme form172 F-51 Nomination form173 F-52 Mudaraba Monthly Savings Schemes form174 F-53 Mudaraba Basasthan Sanchaya Scheme form175 F-54 Auspasta Sakshar/Tip Sahi Sankrant Angiker

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176 F-55 Annual Confidential Report (former f-54)177 F-55a Annual Confidential Report (former f-54)178 F-56 ATM Application Form179 F-57 Mudaraba Lacpati Deposit scheme A/C opening form

Sl No Item Code Item name180 F-58 Mudarab Degun Bridhi Deposit Scheme A/C Opening form181 F-59 Mudarab Notice Deposit Scheme A/C Opening form182 IF-01 Letter of continuity183 IF-02 Letter of Authority184 IF-03 Letter of arrangement185 IF-04 Letter of Guarantee186 IF-08 Murabaha Investment Sanction Advice187 IF-09 Purchase Schedule of Goods188 IF-10 Bai-Muazzal Investment Sanction Advice189 IF-13 Demand Promissory Note190 IF-14 Joint and Several Demand Promissory Note191 IF-15 DP Note Delivery Letter192 IF-17 Letter of Hypothecation193 IF-19 Export Bill Forwarding Schedule194 IF-20 Memorandum of Deposit of Little Deeds195 IF-21 Trust receipt196 IF-24 Letter of Credit Authorization application form in IMP197 IF-25 Balance Confirmation Letter198 IF-26 Letter of Disbursement199 IF-27 Letter of Installment200 IF-28 Application & Agreement for Irrevocable L.C.201 IF-29 Letter of Credit Authorization Application form for Commercial Importer 202 IF-30 Irrevocable Documentary Credit203 IF-30A Irrevocable Documentary Credit continuation Sheet204 IF-31 I D inland L.C.205 IF-32 L.C. advice/amendment Form206 IF-33 L.C. dr/cr advice form207 IF-34 Hire purchase Agreement under Shirkatul Melk208 IF-35 Murabaha Agreement General209 IF-36 Bai-Muazzal Agreement 210 IF-37 Agreement for pledge of securities211 IF-38 FCCA opening form212 IF-40 Signature Card for FCCA213 IF-41 Letter of Authority for FCCA214 IF-42 Investment A/c deposit Pay in slip215 IF-43 Agreement for pledge of goods216 IF-44 Affidavit form217 IF-45 Pledge of MTDR218 IF-46 Deed of Mortgage of m/c & Equipment219 IF-47 Delivery Order220 IF-48 Applications for Investment facility221 IF-49 Proposal for Investment Limit222 IF-50 Application for available investment facility under scheme for

concessional financing of consumer durable for newly married couple223 IF-51 Bai-Muazzal Sanction Advice under scheme for concessional financing of

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consumer durable for newly married couple224 IF-52 Sanction advice Murabaha Investment (Import)225 IF-53 Murabaha agreement Import

Sl noItem Code Item Name226 IF-54 Stock Report227 IF-55 Stock card of Godown228 IF-56 Fate/cost memo of MBE229 if-57,57a Stock report of goods under Mura/ Baim 230 IF-58 Intimatiom letter to importer for MBE231 IF-59 Counter Guarantee form232 M-03 Normal envelope233 M-03A Cloth pasted Envelope234 M-03B Envelope ID (10" x 4.5")235 M-03C Envelope ID (10" x 7.5")236 M-03D Envelope ID (10" x 12")237 M-03E Window Envelope238 M-04 Harvard Lecture- 21st Century239 M-05 L/C File Cover240 M-06 Letter Head Pad-Big241 M-07 Letter Head Pad-Small242 M-08 Memorandum of Articles of Association243 M-09 Manifesto of SIBL - Beng 244 M-10 Manifesto of SIBL Eng. 245 M-11 SIBL Nitimala246 M-12 Office File247 NF-01 Application for Consumer Durable248 NF-02 Bai-Muazzal Sanction Advice for consumer Durable249 NF-03 Sanction advice under hire purchase scheme for consumer Durable250 NF-04 Letter of Under Taking251 NF-05 Particulars of Guarantors252 NF-06 Bai-Muazzal Agreement for special Investment Scheme253 NF-07 Hire purchase agreement under scheme for financing consumer

Durable254 NF-08 Pass Book-Non-Formal255 NF-09 Pass Book-Hajj/Umrah256 NF-10 Cash Waqf Certificate257 NF-11 Family Health Service Cheque258 NF-12 Cash Waqf pay in Slip259 NF-13 Cash Waqf a/c opening form- Beng 260 NF-14 Cash Waqf a/c opening form- Eeng 261 NIF-01 Artha Samajik Jarip Form262 NIF-02 Sadashya Abedan Form263 NIF-03 Biniog Prapti Abedanpatra264 NIF-04 Angikarnama265 NIF-05 Biniog Aunumodan Form

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266 NIF-06 Binioger Biporitey Malamal Sarboraher Jannya Protinidhi Niyog267 NIF-07 Biniog Monjuri O Bitaran Patra268 NIF-08 Biniog Prapti Swiikar Patra 269 NIF-11 Sanchaya O Kisti Aday Bibarani Sheet

Sl no Item Code Item Name270 SP-00 Security Paper271 SP-01 Al Wadiah Current Deposit a/c Cheque book ( 25 leave)272 SP-02 Al Wadiah Current Deposit a/c Cheque book ( 50 leave)273 SP-03 Demand Draft Block274 SP-04 Foreign Demand Draft Block275 SP-05 Mudaraba Monthly Profit Deposit Receipt block276 SP-06 Mudaraba Savings Deposit a/c Cheque book277 SP-07 Mudaraba Term Deposit Receipt278 SP-08 Payment Order block279 SP-09 Mudaraba Education Savings Scheme Receipt

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CHAPTER-VIII

Prevention of Money Laundering Act-2002

(The following is an English translation of the Act and incorporates its amendment (Act No. 3 of 2003). Strikethrough words mean that these were removed while those in italic mean that these were inserted by the amendment. In case of any dispute the official Bangla versions of the Acts shall prevail).

Money Laundering Prevention Act, 2002 (Act No.7 of 2002)

Whereas it is just and necessary to prepare rules with a view to preventing money laundering, therefore, it is enacted as under:

First Chapter

Introduction1. Short Title and Introduction.-(1) This Act will be called as ‘Money Laundering Protirodh (Prevention) Ain (Act), 2002(2) This Act will be in force on the date to be fixed through Government Gazette;

2. Definition. - If nothing is contrary to the subject and reference, in this Act-(Ka) “ Illegal means” will mean any means which is not recognized by any Act, Rules orRegulations;(Kha) “Crime” means any crime under this Act,(Ga) “Court” means Money Laundering Court”;(Gha) Financial Institution” means financial institution defined under Section 2 (Kha) of Financial Institution Act,1993 (Act No.-27of 1993);(Umah) “Code of Civil Procedure” means Code of Civil Procedure, 908 (Act V of 1908);(Cha) “ Court of Session” means Court of Session mentioned in Section 6 of Code of Criminal Procedure;(Chaa) “Determined” means determined by rules;(Ja) “Code of Criminal Procedure” means Code of Criminal Procedure,1898(Act V of 1898);(Jha) “Rule” means rule prepared under this Act;(Eionh) “Bangladesh Bank” means Bangladesh Bank established under the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972;(Ta) “Bank” means the Bank Company defined by Section 5(Na) of Bank Company Ain(Act), 1991 (Act No. 14 of 1991);(Tha) “Money Laundering” means

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(Au) Properties acquired or earned directly or indirectly through illegal means;(Aa) Illegal transfer, conversion, concealment of location or assistance in the above act of the properties acquired or earned directly of indirectly through legal

or illegal means;(Da) “Properties” means movable or immovable properties of any nature and description;(Dha) “Supreme Court” means Bangladesh Supreme Court constituted under Paragraph 94

of the Constitution of the People’s Republic of Bangladesh;(Na) “High Court” means the High Court Division of the Supreme Court

3. Supremacy of the Act.- Not withstanding whatever may contain in any other Act in force, the provisions of this Act will remain in force.

Second Chapter

Responsibility and power of Bangladesh Bank in preventing Money Laundering

4. Responsibility of Bangladesh Bank in preventing Money Laundering.- The responsibility of Bangladesh Bank will be to prevent and resist crime of money laundering and for resisting such criminal activities – (Ka) To conduct enquiry about the crime of money laundering;

(Kha) Observe and supervise the activities of banks, financial institutions and other financial institutions engaged in financial activities;

(Ga) To invite statement from the banks, financial institutions and other institutions engaged in financial activities about any matter connected with money

laundering; (Gha) Examination of the statement received under (Ga) above and taking of proper

action accordingly; (Umah) To give training to the staff/officer of the bank, financial institutions and other institutions engaged in financial activities. (Cha) To perform other work in fulfillment of the objective of this Act.5. Power of enquiry, etc.—(1) Bangladesh Bank or any person authorized by Bangladesh Bank

can enquire into the crime committed under this Act and other related issues and for such enquiry if it is required to enter in to any place the same can be done after following the required system.

(2) In case of enquiry in to a matter the power which an Officer in Charge of aPolice Station can exercise under the Code of Civil Procedure Bangladesh Bank or any person authorized by Bangladesh Bank will be able to exercise the same power while enquiring into the crime committed under this Act.

Third Chapter Money Laundering Court

6. Establishment of Money Laundering Court. (1) In order to fulfill the objective of this Act all Courts of Sessions will be regarded as Money Laundering Court and all Session Judges will be the justice of Money Laundering Court.

(2) Session Judge will settle all cases under this Act himself or he can send the case to any Additional Session Judge under him for settlement.

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7. Jurisdiction of the Court. (1) The Court will be able to impose the prescribed punishment for the crime committed under this Act and in applicable cases pass other orders including order for enquiry, confinement, seizure, fine and compensation.

(2) If the crime under other Act is associated with the crime under another Act in such a manner that in order to dispense justice it is necessary to proceed for trial

for the both crimes together or cases are to be instituted together, then trial for the crime committed under this Act can be done at the same time under other Act in the same Court. But the condition is this that if money laundering is associated with the schedule

of crimes under such Act which is imprisonable for a period less than three years the same will not be treated as a punishment under this Act.

8. Acceptance of the crime for trial etc. (1) Notwithstanding what is contained in any other laws all crimes under this Act will be cognizable for trial under this Act.(2) All crimes under this Act will be Non-bailable.(3) Subject to other provisions of this Act, no accused or punishable person will be released on bail, if--(Ka) no opportunity is given to the complainant party on the application for releasing him on bail.(Kha) The Court is satisfied that there is reasonable ground to adjust him guilty on the charges brought against him; or(Ga) The Court is satisfied that the justice will not be hindered if he is released on bail.9. Application of Code of Civil and Criminal Procedure, etc.-(1) If nothing otherwise exists

in this Act, provisions of the Code of Civil and Criminal Procedures will be applicable as the case may be in case of filing of complain, enquiry, seizure, attachment of property, trial and settlement for the crimes under this Act.

(2) Person conducting cases in the Court on behalf of the complainant will be called as Public Prosecutor.(3) The Court will be able to order the enquiry officer to do further enquiry on the crime of the cases under trial and in such cases the Court will be able to fix up time limit

for submission of the above enquiry report.10. Legal seizure of property.-- On the basis of written application from Bangladesh Bank or any

person authorized by Bangladesh Bank the Court will issue legal seizure of property to this effect that the property of the accused in whatever condition it may remain will be banned from sale or transfer.

11. Freezing of the property.-- (1) On the basis of written application of Bangladesh Bank or person authorized by Bangladesh Bank the Court will issue Freezing Order for the properties of the person who is accused under this Act.

(2) If the Freezing Order is issued as per Sub -section (1) above (Ka) The Court will publish it in the form of Notification in the Bangladesh Gazette and national daily for information of general public.(Kha) The concerned property will in no way can be transferred or the concerned property can

not be made encumbered..(3) In the Freezing Order under this Section, the name of the accused, designation, name of father and mother, address, profession etc should be mentioned as far as possible.(4) If the bank account of the accused is under Freezing Order, if nothing contrary is mentioned in the above Order, all receivables of the accused will be credited in the frozen

bank account.

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12. Appeal.----- Whatever different may exist in the Code of Civil and Criminal Procedures, the aggrieved party aggrieved by order, judgment, decree or punishment imposed by the Court will be able to appeal in the High Court within 30 days of the date of the above order, judgment, decree or punishment order.

12. Appeal.----- Whatever different may exist in the Code of Criminal Procedures, the party aggrieved by order, judgment or punishment imposed by the Court will be able to appeal in the High Court within 30 days of the date of the such order, judgment or punishment.

Fourth Chapter

Crime and Punishment13. Punishment for Money Laundering----(1) If any person is engaged in Money Laundering in any way he will be regarded as a person who has committed a crime.(2) The concerned accused for the crime mentioned in Sub-section (1) will be sentenced to imprisonment for at least a period of six months and a maximum of seven years and will be fined for an amount not exceeding double the amount involved in the crime.14 Punishment for violation of seizure order. - (1) If any person violates the seizure order under Section 10 he will be imprisoned for at least one year maximum or fined for at least Taka ten thousand maximum or he may be punished with both.15 Punishment for violation of the Freezing Order.- (1) If any person violates the Freezing Order under Section 11 he will be imprisoned for at least one year maximum or fined for at least Taka five thousand maximum or he may be punished with both.16 Punishment for divulgation of information. – (1) No person will obstruct the enquiry or divulge information relating to enquiry or relevant other information to other person with a view to casting adverse influence on the enquiry.(2) If any person violates the provision of Sub-section (1) he will be imprisoned for at least one year maximum or fined for at least Taka ten thousand maximum or he may be punished with both.17. Punishment for obstruction in enquiry.- (1) No person will express his unwillingness without any reasonable ground to assist the enquiry officer in his enquiry activities under this Act.(2) If any person violates the provision of Sub-section (1) he will be imprisoned for at least one year maximum or fined for at least Taka ten thousand maximum or he may be punished with both

Fifth ChapterMiscellaneous18. Agreement with the Foreign Country.—(1) The government may enter in to agreement with any foreign country in order to fulfill the objective of this Act.(2) If any agreement is entered into with a foreign country under Sub-section (1) above, the government will declare the name of such country as the 'country under agreement' in

order to fulfill the objective of this Act by Notification in the Government Gazette.19 Responsibility of the banks, financial institutions and other institutions engaged in

financial activities in preventing and identifying money laundering—(1) In checking and identifying money laundering banks, financial institutions and other institutions engaged in financial activities—

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(Ka) As a client of it , it should preserve the correct and full information of all of its clients and in the event of closing of transactions it should preserve records of transactions for at least five years from the date of closure;

(Kha) Will provide the records so preserved as per Sub-section (Ka) above to Bangladesh Bank from time to time on demand;(Ga) Information regarding abnormal transactions and doubtful transactions which are likely to be related to money laundering should be informed to Bangladesh Bank.

(2) Bangladesh Bank will determine the information to be preserved as per Sub-section (1) and issue Circular or Gazette Notification from time to time. (3) In the event of failure of providing and preserving the information as mentioned in

Sub-section (1) Bangladesh Bank will inform the licensing authority of the defaultingbank, financial institution and other institutions engaged in financial activities so thatthe concerned authority can take proper action for negligence and failure against theconcerned bank, financial institution and other institution engaged in financialactivities as per their own rule or provision.

(4) Whatever may contain in Sub-section (3), Bangladesh Bank will be able to imposefine up to a maximum of Taka one lac and a minimum of Taka ten thousand to thedefaulting bank, financial institution and other institution engaged in financialactivities for failure to preserve and supply information as mentioned in Sun-section

(3) and also for negligence.

20. Crime committed by the Company etc.—(1) If the violator of any provision of this Act is a company, it will be regarded that each proprietor, director, manager, secretary or any other officer or employee or representative of the company has violated the provision But the condition is this that the concerned person will not be responsible for the violation if he can prove that the above violation has been done beyond his knowledge or he has failed to check the violation despite his best effort.Explanation: - In this section—(Ka) “Company” will mean any company, statutory body, partnership concern, Association or institution formed with one or more than one person;(Kha) “Director” will mean any partner or member of the Board of Director in whatever name it is called.(2) Registration of the company which is engaged in money laundering directly or indirectly will be liable to be cancelled.21. Power to frame rules.—Government by Notification in Government Gazette will be able to

frame rules in order to fulfill the objective of this Act.Schedule[ Reference - conditions of Section 7(2)](Ka) Penal Code, 1860 (XLV of 1860);(Kha) Arms Act, 1878 (XL of 1878)(Ga) Foreign Exchange Regulation Act, 1947 (VII of 1947);(Gha) Anti-Corruption Act, 1957 (XXVI of 1957);(Umah) Special Power Act, 1974 (XIV of 1974);(Cha) Madak Drabwa Niatran Ain (Drugs Control Act), 1990 (Act No. 20 of 1990);

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(Chaa) Jana Nirapatra (Bishesh Bidhan)Ain [Public Safety( Special power) Act], 2000 (Act No. -7 of 2000);(Ja) Nari O Shishu Nirjatan Daman Ain (Women and Children Oppression Prevention Act), 2000 (Act No.-8 of 2000);(Jha) Aain-sringkhola Bighnokari Aporadh (Druto Bichar) Aain, 2002. (Crimes obstructing law &order (speedy trial) Act), (Act No. 11 of 2002).

KYC:CUSTOMER IDENTIFICATION PROCEDURES

1. Know Your Customer (KYC) Policies and Procedures:

Having sufficient information about the customer- “Knowing Your Customer” (KYC) and making use of that information underpins all anti-money laundering efforts, and is the most effective defense against being used to launder the proceeds of crime. If a customer has established an account using a false identity, s/he may be doing so to defraud the institution itself, or to ensure that s/he cannot be traced or linked to the crime the proceeds of which the institution is being used to launder. A false name, address or date of birth will usually mean that law enforcement agencies cannot trace the customer if s/he is needed for interview as part of an investigation.

The verification procedures needed to establish the identity of a prospective customer should basically be the same whatever type of account or service is required. The best identification documents possible should be obtained from the prospective customer i.e. those that are the most difficult to obtain illicitly. No single piece of identification can be fully guaranteed as genuine, or as being sufficient to establish identity so verification will generally be a cumulative process. The overriding principle is that every institution must know who their customers are, and have the necessary documentary evidence to verify this.

2. ANTI MONEY LAUNDERING PROCESSES:

Know Your Customer Procedures:

The Bank is required to perform due diligence on all prospective clients prior to opening an account. This process is completed by fulfilling the documentation requirements (Account Application, Bank References, Source of funds and Identification for example) and also a ‘Know Your Customer’ profile which is used to record a clients source of wealth, expected transaction activity at it’s most basic level.

KYC profile gives the basic information about the customer like, Name, Address, Tel/Fax Numbers, line of business, Annual sales. If the customer is a Public Figure, the account will become automatically a High Risk Account.

The KYC Profile leads to Risk Classification of the Account as High/Low Risk.

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Staff/OfficerAssessmentOr customerProvided

KYCProfile

RiskClassification

Frequency ofMonitoring andReview

Social Investment Bank Ltd..…………………….Branch

KYC PROFILE FORM

01 Title of Account02 Name of the Applicant03 Account number04 Name of officer opening Account05 (a) Occupation of the Account Holder

(b) Nature of Business/ Job(c) Monthly Income(d) Sources of Fund

06 Particulars of Passport (if any) No……………………Issuing Date……………………Issued by………………………………………………..

07 Name of the Actual owner(in case of Agent/Trustee)

08 (a) Reason for opening of Non- resident/ foreigner’s account(b) Type of Visa Resident/Work

09 (a) What does the Customer do

Jewelry/ Gems Trade, Money Transmitter/ Changer, RatingReal Estate Agent/, Construction Promoters of Projects, Offshore Corporation/Art/Antique Dealer,Restaurant owner, Import/ Export Agent, Share & Stock Broker, Finance Company, Travel Agent,Transport Operator, Auto Dealer (Recon/new), ShopOwner (Retail), Software, Business Manufacturer, Retired from service, Service, Self EmployedProfessional, Operation in multiple location,Corporate customer, Cash incentive, business, Trader (Turn over less than 0.50 crore & more than 1.00 crore)

10 How the A/c was opened Through Other Customers/Officer/DSA/Internet/walk-in/unsolicited

11 What is the Net worth of teh person/sales turn Over of the Firm / Company ?

12 Expected amount of TOTALTransactions on Monthly basis Amount …………

13 Expected amount and Number of Cash Transactions on Monthly basis

14 Risk Assessmen Score...

Signature of Account Holder

Comments (if Any) of G.B./Customer Relationship Officer/Manager/Branch Incharge Signature of Officer Approver’s Signature

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Social Investment Bank Ltd

………………………………….Branch

TRANSACTION PROFILE

Bank Products Required No. of Transactions(Monthly)

Maximum Size(per transaction)

Total Value

01 02 03 04(02*03)

Deposit/Collection/Inward Remittance etc.

Cash DepositCheque depositCash collectionOutstation Cash collectionOutstation Cheque collectionIncoming LCY TransfersIncoming FCY TransfersFCY Cheque collectionExport ProceedsOthers (specify)

Withdrawal/Payment/ Guarantee Commitment/ Outward Remittance etc.

Cash WithdrawalCheque PaymentsMM Products (deposit)FX ProductsOut going LCY TransfersOut going FCY TransfersLetter of CreditLetter of GuaranteesInvestment / Loan FacilityInvestment Transactions(Shares & Securities)Pay roll cardsOthers (Specify)Expected Source of Fund

I/We the undersigned, hereby confirm that this Transaction Profile truly represents the transactions arising out of the normal course of business of myself/ourselves/our organization. I/We also confirm to revise our Transaction Profile, if necessary, from time to time.

Signature of A/C Holder……………………………………... Signature Verified

Name………………………………………………………….

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Title of Account……………………………………………….

Date…………………………………………………………… C.R. Officer (G.B.)/Authorised Officer

RISK RATING & ASSESSMENT

(For use of the Account Opening Officer / In- Charge General Banking and / or Branch Incumbent)

01.What does the Customer Do? (Sl. 09)

Category Risk level RatingJewelry/Gems Trade High 5Money Transmitters/Changers High 5Real Estate Agents High 5Construction Promoters of Projects High 5Offshore Corporation High 5Art/Antique Dealers High 5Restaurant Owners High 5Traders with a turnover of more than 1 crore per annum High 4Import/Export Agents High 5Cash Intensive Business (cash deposit > 25 Lacs in a month) High 5Share & Stock Broker High 5Finance Companies (NBF) High 5Travel Agents High 4Transport Operators Medium 3Auto Dealers (used/ reconditioned cars) Medium 3Auto Primary (new car) Low 2Shop Owner (retail) Low 2Business-Agents, Franchisees Low 2Small trader (turnover less than 50 lacs per annum) Low 2Software Business Low 1Manufacturers (other than arms) Low 1Retired from service Low 0Service Low 0Self Employed Professionals Low 2Operations in multiple locations High 5Corporate Customers of Repute (irrespective of the category) Low 2

02.What is the net worth / sales turnover of the customer? (Sl. 10)

Amount (Tk.) Risk level Risk rating1-50 Lacs Low 050 L – 200 L Medium 1 > 2 crores High 3

03. How was the a/c opened? (Sl. 11)

Mode Risk level Risk rating

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RM/Affiliate Low 0DSA Medium 1Internet High 3Walk- in / Unsolicited High 304. Expected Value of transactions on monthly basis. (Sl. 12)

Value forAWCD(Tk. Lacs)

Value forMSD(Tk. Lacs)

Risk level Risk rating

0 - 10 0 – 5 Low 010 - 50 5 - 20 Medium 1 > 50 > 20 High 3

05. Expected Number of transactions on monthly basis. (Sl. 13)

Number for AWCD Number for MSD Risk level Risk rating0 - 100 0 - 20 Low 0101 - 250 21 - 50 Medium 1 > 250 > 50 High 3

06. Expected Value of Cash Transactions on monthly basis. (Sl. 14)

Value for AWCD(Tk. Lacs)

Value for MSD(Tk. Lacs)

Risk level Risk rating

0 - 10 0 - 2 Low 011 - 25 3 - 7 Medium 1 > 25 > 7 High 3

07. Expected Number of Cash Transactions on monthly basis. (SL. 15)

Number for AWCD Number for MSD Risk level Risk rating0 - 15 0 - 5 Low 015 - 30 6 - 10 Medium 1 > 30 > 10 High 3

08. Overall Risk Assessment : (Sl. 16)

Riskrating

Riskassessment

> = 14 High < 14 Low

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CHAPTER-IX

CONTITUENTS’ ACCOUNTS:GENERAL INSTRUCTION

1. Introduction In this chapter, the instructions are directed particularly to Al-Wadeeah Current Account but many of them are also applicable to Bank’s other deposit account and relations with its constituents generally and should be observed in other departments of Bank’s business also as applicable. The Instructions regarding Mudaraba Savings Account, Mudaraba Notice Deposit (MND) Account, Mudaraba Term Deposit (Receipt)_MTDR Account, Mudaraba Hajj Savings Account, Cash Waqf Deposit Account, Mudaraba Monthly Profit Deposit Receipt (MMPDR), Scheme Mudaraba Monthly Profit Deposit Scheme Special Savings (Pension)-MPSS Scheme, Mudaraba Millionaire Savings Scheme Account, Mudaraba Education Deposit Scheme Account, Mudaraba Monthly Savings Scheme Account, Mudaraba Bashstan Savings Account, Mudaraba Lakhopati Deposit Scheme Account, Mudaraba Double Benefit Deposit Scheme Account, Mudaraba Marriage Savings Scheme Account, Mudaraba Mohorana Scheme Account, Account are to be found in the foregoing Chapters.

2. Introductory References and Opening of Accounts:2.1 The Authorised Officer for opening Accounts must ensure that no

deposit account is opened without the approval of the Manager, who will authorize opening of the account only when he is satisfied that the applicant is respectable and good enough to be a customer of the Bank. Proper introduction to be obtained from a respectable person known to the Bank, preferable having a satisfactorily conducted account with the Bank. Introducer’s signature must be verified by the designated Officer. Introduction of a Mudaraba Savings Bank Account holder should no ordinarily be accepted for opening an Al-Wadeeah Current Account. It must, however, be realized that a letter of introduction does not in any way bind the signatory thereto in the event of the account becoming irregular. Introductory references furnished by the members of the staff lower in rank than Officer must not be accepted.The Know Your Customer (KYC) form duly filled up with the detailed particulars by the intending person to open an account must be taken. Transaction Profile (TP) of the account has to be taken at the same time. The authorized officer must ensure that by no means fictitious account is opened in the Bank. He should follow all instructions of the Prevention of Money Laundering act 2002 at every stage to open accounts for the sake of interest of the Bank.

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Extreme caution must be exercised in case of introductory references furnished by persons not having satisfactory dealing with the Bank. Account Opening Forms and Specimen Signature Card should be completed and signed in the presence of the Manager or an authorized officer of the Bank whom will admit the same under his signature. Manager will personally examine the Account Opening Form and other relevant papers and accord permission for opening of account under his full signature. No Cheque Book should be issued until proper introduction has been obtained and also the initial deposit is received. Rules for opening and maintenance of the respective accounts shall have to be inserted in the respective Account Opening Form. The concerned officials shall make the account opener understand the rules. Letter of Thanks should be sent to the Account opener and the introducer under Registered A/D post latest by the following day of opening of the account.. Similarly, when an account is opened in the name of a Limited Company or a Co-operative Society or any organization, Letter of Thanks should be sent to the Chief Executive of the Company or the Chairman of the Society as the case may be. This action is expected to eliminate the chance of opening any fictitious account.

2.2 Two Recent passport size photographs duly attested by the introducer shall be obtained/preserved duly noted the account number for opening Al-Wadeeah Current Account, Mudaraba Savings Account, Mudaraba Notice Deposit (MND) Account, Mudaraba Monthly Profit Deposit Scheme Account, Special Savings (Pension) Scheme, Mudaraba Millionaire Savings Scheme Account, Mudaraba Education Deposit Scheme Account, Mudaraba Monthly Savings Scheme Account, Mudaraba Bashstan Savings Account, Mudaraba Lakhopati Deposit Scheme Account, Mudaraba Double Benefit Deposit Scheme Account, Mudaraba Marriage Savings Scheme Account, Mudaraba Mohorana Scheme Account etc. A photograph will be preserved with Account Opening Form (AOF) and another with Specimen Signature Card for scanning in the Computer. Account opening officer must verify the signature of the Introducer on the photograph and also put his signature as a token of verification of the face of the account holder with the photograph produced by him.

3. Individual Account:3.1 Nature of

AccountAn Individual competent to make a contract may open an account with the bank by submitting the account opening form duly completed including selection of nominee(s).

4. JOINT ACCOUNT:4.1 Instructions

regarding operation:

At the time of opening an account, clear and specific instruction shall have to be obtained regarding nominee, operation of the account and payment of the balance to the survivors or surviving members in the event of death of one or more joint Account-holders, which may be in any of the following forms.

4.2 Special forms of Instructions:

a) By any of the joint account-holders singly,b) By either or survivor singly,c) By either singlyd) By any two or more joint account holders jointly,e) By all the survivors jointly.

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4.3 Written and signed Instructions

These instructions, as far as possible, shall have to be obtained in clear language and terms of the parties concerned, preferably under the authentications by the signatures of all the Joint Account-holders.

4.4 Bankrupt Condition:

In the event of any of the Joint Account-holders becoming bankrupt, insolvent, lunatic all operations in the Joint Account shall be stopped until fresh instructions are given by the remaining solvent account-holders jointly, signed by them and the official assignee for the incapable account holder.

4.5 Opening of the new Account of the death:

In the event of death of any party to a Joint Account the survivor or survivors shall be requested to close the old account and open a new account in the name of the surviving account- holder(s).

4.6 Conditions for allowing Investment/facility:

No investment shall be allowed in a Joint Account, unless it is operated on jointly by all the parties to the account, and charge documents are to be signed by all of the parties.

5. ACCOUNTS OF PARDANSHIN LADIES5.1 Proper

Introduction:Accounts of Pardanshin Ladies shall be opened after having been introduced by a respectable client and/or otherwise known to the Bank, providing they can read and write English/Bengali.

5.2 Illiterate Pardanshin ladies:

Account of illiterates shall not be opened under any circumstances. However, if she provides her attested photograph and agrees to keep open her face at the time of opening & each operation of the account then it can be opened under her thumb impression having good introducer only in whose presence/witness withdrawal on money from the account will be allowed.

5.3 Accounts of ladies:

Account of ladies can be opened observing all usual formalities.

6. ACCOUNTS OF MINORS6.1 Guardians to

open account (Joint account with Minor Participation)

An Account in the name of a minor shall not be opened unless it is opened by his/her guardian in the following form, preferably a Mudaraba Savings Deposit Account and some scheme accounts.

For XYZ (Minor)ABC (Guardian)

6.2 Formalities for opening:

The Account Opening Form shall only be signed by the guardian, who will continue to operate the account till minor attains adult / majority, 2(two) Passport size photographs of the guardian and introduction are to be obtained in the AOF in the name of minors.

6.3 Age of minor be recorded:

The age with date of birth of the minor shall be recorded both in the Account Opening Form, Signature Card and in the Ledger/Computer.

6.4 Al-Wadeeah Current Account or Mudaraba Savings Bank Account may be opened in the name of a minor always provided that no overdrawn will be allowed in the account. A guardian appointed under the Guardians and Wards Act (Act. VIII of 1980) may also open an account on behalf of the minor. The guardian must not be allowed to operate on the account after the minor has become of age. However Guardian may continue its operation at the written consent of the major .

6.5 A minor attains maturity at the age of 21 (twenty-one) years when (a) a guardian of his person or property has been appointed by the court or (b) his property is under the superintendence of a Court of Wards. In other cases minority ceases at the age of 18 (eighteen) years.

6.6 A minor can be an agent, and is able to be a Director of a limited

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company if the articles so allow, and in drawing cheques on the company’s account can cause the company as principal to be liable for any borrowings it takes from the bank.

7. ACCOUNT OF UNDISCHARGED INSOLVENT7.1 Restrictions No account should be opened in the name of an undischarged

insolvent or a person of unsound mind. When a branch receives definite evidence of bankruptcy or lunacy or an existing customer, all operations on his account should forthwith be suspended till the receipt of order from the Count or definite proof of the customer’s solvency/sanity.

8. ACCOUNTS OF BANKS, GOVERNMENT OFFICIALS AND MILITARY FUNDS

8.1 Prior approval of Head Office required:

Branches should not open accounts for Banks which are not established at their own stations nor should they enter into any agency arrangements with other banks without prior approval of the Head Office.

9. ACCOUNTS IN THE NAME OF FIRMS9.1 Application to open Al-Wadeeah Current Accounts in the name of

Private Firms will be made in the AOF where the name(s) of the proprietor or the partners who are authorized to operate the account and their signatures along with Firm’s Seal should be obtained.

9.2 Cheques payable to a firm must not be accepted for credit of the personal account of a partner or an employee of the firm. It may be encashed in the counter on presentment with the seal branded signature as a recipient of cash by the proprietor only.

10. PARNERSHIP FIRMS10.1 Opening of

Account by one partner:

The law of partnership is modified in the Partnership Act.1932 as adapted in Bangladesh. The attention of manager is particularly drawn to Sections 18, 19 and 20, especially to Section 19(2) regarding the implied authority of a partner to do acts which will bind his firm.A Partnership account shall be allowed to be opened and operated on by any one partner of the firm under his signature with Seal of the firm, if provided under the partnership deed and signed by all the partners of the firm, in their individual capacity.

10.2 Payment of Balance to heirs of a deceased:

In case of death of a partner, if the deceased partner was operating on the Partnership account singly, the balance shall be paid to the heirs of the deceased/the surviving partners as per Partnership deeds/orders of the Court or agreement arrived at between the Surviving partners and the heirs of the deceased., In the later case, the recipient executes Indemnity Bond.

10.3 Submission of Partnership Deed:

Whenever a Partnership deed is given, the same should be accepted and registered with the Bank. However, in case of an ordinary Current Account, the bank should insist on the production of the Partnership Deed. It is not necessary for the Bank to insist that the firm should be registered with the Registrar of Firms.

10.4 Advised to open a new Account:

In case of death of any partner if the account is operated on by other partners as wall, the surviving partners shall be advised to close the partnership Account and open a new account.

11. LIMITED COMPANY

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11.1 Account opening Account of Public/Private Ltd. Company can be opened obtaining its certified copy of Memorandum and Articles of Association, Certificate of Incorporation, Certificate of Commencement of Business (in case of Public Ltd. Co), Resolution of Board of Directors authorizing the person/persons/office bearer(s) to open & operate the account.

11.2 Certificate of commencement

No Cheque Book shall be issued for allowing withdrawals from the account of the newly floated companies unless a certified copy of certificate of commencement of business (in care of Public Limited Company) is produced by the company.

11.3 Production of Certificate

If the company fails to produce such certificate the deposits accepted by the Bank on their behalf representing share money, received in anticipation of the commencement of business shall be refunded in lump sum to the Directors of the company on obtaining a joint receipt from all of them.

11.4 Certified Copy of Managing Agent Agreement:

Accounts of Limited Companies opened or operated on by the Managing Agent of the Company shall not be opened or allowed to be operated on, unless a certified copy of the Managing Agent Agreement is obtained and the authority of the person signing on behalf of the firm or company or the Managing Agent is verified.

11.5 Company’s powers to borrow:

No financial assistance shall be allowed to any company unless it is ascertained that the company is authorized on that behalf by the Memorandum and Articles of Association of the Company and to secure the investment against securities offered by it; and the person signing the Document is entitled to do so by virtue of the powers vested on him by the Memorandum and Articles of the Company & the Resolution of the Board of Directors of the Company.

12. ACCOUNTS OF EXECUTORS AND ADMINISTRATORS12.1 Head Office

approval:Accounts of Executors, Administrators/Trustee (s) shall not be opened without prior permission from Head Office.

12.2 Method of Opening:

On obtaining permission, the account shall be opened in the following form:-Jb. X & Jb. Y, Executors of the Estate of Jb. Z deceased. Jb. X & Jb. Y Administrators to the Estate of the deceased Z.

12.3 All Executors to sign

The Account Opening Form shall be signed by all the Executors to whom probate order has been granted, or by all the Administrators, if more than one.

12.4 Registration of probate:

The probate order or Letter of Administration shall be duly recorded at the Branch Document Register (B-40) and to be preserved properly.

12.5 Operational instruction:

Clear instruction under the signature of all the Executors and/or Administrators shall be obtained to determine as to which of the Executors or administrator shall operate the account.

12.6 Revocation of instruction:

In the event of revocation of such instructions by any of the Executors or Administrators, further operations in the account shall be allowed only under the joint signatures of all the Executors and Administrators.

12.7 Third parties not to operate

No power of attorney or authority letter given by the Executors or Administrators to third parties to operate on the account shall be accepted by the Bank.

12.8 Funds belonging to Estate:

No transfer of funds from the account of the Estate to the personal accounts of the Executors or trustees shall be allowed.

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12.9 Administrators not empowered to borrow:

The Executors/Administrators shall, neither be allowed to raise any borrowings from the Bank in their personal names against securities belonging to the Estate Accounts, nor shall they transfer any funds from the accounts of the Estate to their personal investment or investment accounts.

13. ACCOUNTS OF LIQUIDATORS13.1 Head Office

approval:Accounts of liquidators shall be opened after obtaining prior approval from Head Office.

13.2 At least two Liquidators:

In case of more than one liquidator, the account shall not be allowed to be operated on by not less than two Liquidators, unless so empowered at the time of their appointment.

14. TRUSTEES ACCOUNTS14.1 Before a Trust is opened a Trust Deed (Certificate copy with up to

date amendment) must be called for and a copy or relevant extracts taken serially numbered and retained with Account Opening Form duly noted in Branch Documents Register . Seal should be affixed mentioning their status in all relevant banking operations. Special attentions must be given to the following point: -

14.2.1 Is power given for any number short of all the Trustees to sign cheques?If not, all must sign

14.2.2 Is power given to the Trustees to delegate their authority to any one or more of themselves or to third parties? If not, no delegation should be accepted.

14.2.3 Is power given to the Trustees to seek financial facility? If not, no investment should be allowed.

14.3 No cheque drawn on a Trust Account may be accepted for credit of a private account of one to the Trustees, if the private account is overdrawn unless there is undoubted evidence in the Trust Deed or elsewhere that the transaction is in the accordance with the purpose of the trust. In cases, therefore, where a Trustee has a private account as well as a Trust Account (either solely or with other Trustees) the requisite instructions must be noted in both the private and the Trust Accounts.

14.4 Further instructions, if required, in connection with maintenance of Trust Account may be obtained form the Head Office or written request.

14.5 When a Manager takes over charges of a branch, he will examine all the Trust Accounts and the copies of the relative trust deeds at the time of or as soon as possible after taking over the charge.

14.6 If any branch is approached to act as a Trustee of a customer prior permission of the Head Office must be obtained.

15. ACCOUNTS OF LOACL AUTHORITIES, MUNICIPAL CORPORATIONS, DISTRICT COUNCILS ETC.

15.1 Copy of Statute of the organization:

Before opening the account of any Government or Semi Government Organization or a Local Body, a certificate copy of the Statute or any other law by which the body is formed and governed shall be obtained.

15.2 Contravention of statutes not allowed:

Such accounts shall not be opened or allowed to be operated in contravention of the provisions of the rules governing the accounts of those Corporations. The accounts of Local Authorities, Municipal corporations, District Council etc., shall be opened in Mudaraba

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Savings A/c Al-Wadeeah Current A/c, Special Notice Deposits Account and related AOF shall be used for opening accounts.

16. ACCOUNTS OF ILLITERATE PERSONS16.1 Thumb

ImpressionNo account of the illiterate person shall ordinarily be opened. Illiterate persons desire to open an account may be allowed to open an account and operate on an account under the thumb impression to be printed before an authorized officer duly witnessed by the introducer of the account.

16.2 Photograph: Two recent photographs duly attested by the introducer shall be obtained and pasted on their Specimen Signature Card and Account Opening Forms as usual.

16.3 Letter of Undertaking:

A letter of undertaking shall be obtained from them to the effect that they shall not operate on the account unless they personally come to the Bank and put their thumb impression on the Cheque in the presence of the Bank Manager/Authorized Officer & the introducer.

17. ACCOUNTS OF CLUBS & SOCIETIES17.1 Clubs/Societies

Account will be opened on:

Constitution/Bye-laws, list of office bearers with addresses thereof, duly attested Resolution for opening and operation of the account under official seal & signature to be affixed/obtained.

17.2 Restriction on Investment:

No investment shall be allowed in the accounts of Clubs, Societies and Associations without prior approval from Head Office.

17.3 Fund belonging to societies:

No Cheques drawn on the accounts of Clubs and Societies shall be collected for credit of private accounts of the office bearers of the societies and Clubs.

17.4 Fresh Resolution required

In case of relinquish, transfer or death of any of the office bearers of Club/Society operating on the account, all the operations in the account shall be stopped forthwith, till the receipt of a fresh resolution passed by the Managing Committee determining the method of its operation in future and delegation of powers to the new office bearers, which should be advised to the Bank.

18. INOPERATIVE ACCOUNTS/DORMANT ACCOUNTS: Generally Al-Wadeeah Current Account (AWCA), Mudaraba Savings Account (MSA), Mudaraba Notice Deposit Account (MND), come under purview of Inoperative/Dormant Accounts. When no operation in the Al-Wadeeah Account is taken place for the previous 6 (six) months and in the Mudaraba Savings or MND is taken place for 12 (twelve) months is called Dormant A/c. But no transaction beyond the period i.e. up to 12 (twelve) months for Al-Wadeeah Current A/c and 24 (twenty four) months for Mudaraba Savings or MND is called Inoperative Account.

18.1 Accounts not to be transferred:

a) The Accounts of Local Authorities, Semi-Government and Government Institutions shall not be marked/transferred to a Dormant Account.b) If such accounts become dormant, every effort shall be made to get them revived, instead of transferring them to a Dormant Account.

18.2 Transfer of Inoperative accounts to Dormant Accounts:

The following procedure shall be adopted for transferring inoperative Accounts to a Dormant Account. However, affecting any such transfer sufficient efforts to be ensured to intimate the account holder through all available means.

a) An auto para-meter has been designed in the Computer Program through which Al-Wadeeah Current and Mudaraba Savings Accounts will be separated in dormant files as above.

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For this purpose branches will execute the dormant process quarterly ie, on 1st April, 1st July, 1st October and 1st January. After observing all formalities and precautions transactions may be allowed re-activating the Dormant Account.

b) Computer Operators will be personally responsible for posting of cheques in a Dormant/In-operative A/c without prior permission of the Branch Manager.

c) If operation in any dormant account becomes frequent the Manager after satisfying himself will treat the said account as regular to facilitate transaction in usual manner.

d) Profit shall be paid on the balance of the Inoperative/Dormant Account as per usual rule.

e) If any cheque is presented on any Dormant Account, the Branch Manager after satisfying himself that transaction is in order will authorize payment of the cheque under his signature. No other officer is permitted to deal in the Dormant Accounts.

f) List of full particulars of all accounts so marked in the Computer should be preserved in a file duly authenticated by the authorized Officer and countersigned by the Manager. Outstanding in the Dormant Account should be checked to agree with the balance of the “Dormant WCA/MSA” Account at least once in a quarter.

g) All Dormant Accounts shall be marked as: - “Care Dormant Account. All operations as well as issue of Cheque Book should be referred to the Manager” in the SS Card and Account Opening Form

18.4 Unclaimed/ Inoperative Account for ten years and above:

As per Banking Companies Act 1991 under section 35(A), Bank is to surrender all deposits/valuables to Bangladesh Bank if any account has been found unclaimed and inoperative for ten years and above.The valuables/balances, if any, shall be surrendered to Bangladesh Bank after obtaining prior approval from Head Office considering the following points:

a) If any account except Government, Minor or under order of Court has any balance payable in Bangladesh currency and lying for 10 (ten) years and above without any transactions(s)/communications/correspondence from following date:

i) In case of any term deposit for specific term, from the date of expiry of the said term, and

ii) In case of other account(s) form the date of last transaction, last acknowledgement of statement of the account or from the date of last request for having the same, or

b) In case of any account, on which dividend, bonds, profit or any other money payable, if lying unpaid or no claim raised for ten years and above from the date of becoming payable of the same, or

c) If any cheque, draft or exchange documents sent by a Banking Company to any of its branches for payment in Bangladeshi taka, and or if the cash against the cheque, draft, document is not pain for 10 (ten) years and above form the date of issue/certify/acceptance of the cheque, draft or document or

d) If any approved document/certificate, share commodity, any valuable kept in the bank’s safe-custody, mentioned jointly or singly

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as valuable assets and if the same is not visited or acknowledged for ten years and above from the date of last visit/acknowledgement:In cases, registered with AD. Letter/notice shall have to be sent to the beneficiary of the money, cheque, draft, and exchange document or to the successor of them and to the depositor of the valuables giving 3 (three) months time.If after elapse of 3 (three moths time, any reply/response/acknowledgment do not appear from any of the beneficiary, successor, depositor, account holder, only the money, valuables of them to be surrendered to Bangladesh Bank.Any clarification in this regard shall be obtained form Business Development and Marketing Department, Head Office, Dhaka.The surrender shall be made through FAD, Head Office as and when required.

19 ATTACHMENT BY COURT19.1 A court prohibits or attachment order affects constituent’s account

only to the extent specified in the order. If the order refers generally to debts due from the Bank to the constituent the Bank is prohibited from paying away any sum at the credit of the constituent. If, however, the order specifies the account which is attached, the Bank is not precluded from paying away any balance in excess of that figure. In such cases the constituent should be allowed to operate in respect of the amount in excess of what is required to satisfy the order. In all cases, the order must be noted in the Computer/Ledger by the authorized official and the constituent, advised of its receipt. It will also be desirable to transfer the amount specified in the order to Sundry Deposit Account as a precautionary measure.

19.2 All liens on account of prohibitory orders received should be recorded on the passing officials lists of stopped cheques as well as in the Computer.

20. PROBATES, LETTERS OF ADMINISTRATION20.1 Probates, Letter of administration, Succession Certificates, Court

Orders Receivers etc., submitted to the Bank for registration must be carefully examined by the Manger and recorded with his initials in the Documents Ex-Custody Register.

20.2 Under Section 273 of the Succession Act. 1925, Probates and Letters of Administration have effect over all the property and estate, movables and immovable of the deceased throughout the country.

21. ACCOUNTS IN IDENTICAL OR SIMILAR NAMES21.1 When a new account is opened, the Computer Operator should see

whether any account stands in same or similar names in the computer. If any close similarity exists, precautions should be exercised while allowing transactions in these accounts.

21.2 Whenever a debit or a credit is to be passed through such an account the number of account and the signature of the account holder should be carefully verified and the item should be passed through the account only after fully satisfied in this regard. In case of any doubt as to the account to which a debit or a credit should be passed, the matter should be referred to the parties concerned immediately and the credit amount if necessary should be kept in Sundry Deposit Account for the time being. Such entries in the Sundry Deposit Account should be reversed immediately after obtaining necessary

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confirmation from depositor the party concerned. To secure the Bank against being put under any liability, members of the staff should not normally write-up pay-in-slips etc. on behalf of the customers but necessary help/guidance may be extended.

22. EVIDENCE IN COURT22.1 Under the Banker’s Book of Evidence Act 1891, the Bank is not

compelled except by special order of the court, to produce its books as evidence in any legal proceedings to which the Bank is not a party. It is ordinarily sufficient for the bank to furnish relative extracts from its Book duly certified by the Manager in the following forms: -

22.2 “Certified that the above is a true copy of an entry/entries which is/are the ordinary books of the Bank and that such entry was/entries were maintained in the usual and ordinary course of business and that such book is/books are still in the custody of the Bank.

22.3 When an attachment order is received Manager should thoroughly verify and satisfy themselves that the order is complete in all respects as regards names or parties, description etc. and is in face binding on the Bank. At the same time they should not forget their primary duty as a banker to protect the investment of the customers within the law. In case of any doubt reference should be made to the Head Office immediately without permitting withdrawal on the relative account.

22.4 In accordance with the provisions of Criminal Procedure Code (CPC), Investigating Police Officers can search and order production of Bank’s records for inspection in connection with investigation of criminal cases under the Bangladesh Penal Code (BPC) with prior permission in writing of the Sessions Judge or of the High Court or the competent authority as the case may be. So, if any Police Officer wants to search or demand production of Bank’s records for inspection, he should be requested to produce the court’s order along with his requisitions for the records.

22.5 The documents required by the police authorities in connection with the criminal cases may be handed over to them against acknowledgement of getting a requisition in writing accompanying relevant court order(s) authorizing them to obtain such documents. Requisition from the police authority will remain attached with the court orders and recorded in the Branch Document Register .

22.6 Photostat copies of the original documents handed over to the Police authorities should invariably be retained at the branch, Authentication of Police Officers taking possessions of the document should be obtained on Photostat copies of the purpose or verification.

22.7 Original court orders, requisitions from Police Officer, acknowledgment and Photostat copies of documents handed over to the Police Officer should be retained in the personal custody of the Manager/Authorized officials.

23. IRREGULAR ACCOUNTSWhen a constituent does not conduct his account properly (e.g. when his cheques have to be returned frequently for lack of funds) his attention should be drawn to this fact. If there is no improvement, he may be requested to close his account and no further credits should be accepted on it. In implementing their instructions, however Managers will exercise utmost care so as to ensure that Bank’s

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image/popularity is not affected in any way. Irregularly or unsatisfactorily conducted account may be a source of danger and should not be allowed to continue for long time.

24. FREEZING OF ACCOUNT24.1 Freezing of account means suspension of all types of transactions in

an account under instruction from a competent Court/Authority. On receipt of such order, the relative account must be marked “FROZEN” and no transaction will be allowed on the same. The same will be disposed as per subsequent order of the authority concerned.

24.2 The order of freezing is issued by the Court of Law pending disposal of a case connecting the same. Again some freezing orders are given by inquiring authority in connection with some special and political cases But the same instruction must either from a competent authority, in case of Police authority not below the rank of Deputy Superintendent of Police through the Bangladesh Bank/Head Office.

25 STOP PAYMENT OF CHEQUE25.1 Stop payment

instruction to be obtained in writing

Instruction for stop payment of any cheque of an account shall be obtained from the account holder in writing.

25.2 Instructions received on phone or by telegram

If such instructions are received over telephone or by telegram a provisional note in respect thereof shall be made on the relative Computer pending receipt of writing instructions from the account-holder. If the cheque is presented in the mean time, the same should be returned with the objection “Drawer’s confirmation is required” duly recorded in cheque Returned Register under authentication of the Manager. The account holder shall be advised to confirm his stop payment instruction in writing.

25.3 Noting of time and date of instructions received

The date and time on which the instructions received shall be written on the letter and initialed by an authorized officer

25.4 Verification of signatures on letters received from customers

The signature of the account-holder shall be verified on the letter for ascertaining the genuineness’ of the instruction.

25.5 Verification of the instruction

The instruction shall be passed on to the computer operator and passing officer to check the relative account and to ascertain if that particular cheque has not been paid.

25.6 Noting in the stop payment register

Then, these particulars of the cheque, payment of which has been stopped shall be noted by the Computer Operator and Stop Payment Register and get it authenticated by authorized officer under his full signature.

25.7 Filing of stop payment letter

The stop payment letter received from the party shall be filed in the stop payment file.

25.8 Presentment of Stop payment cheque.

When a cheque, the payment of which has been stopped presented, the stamp “Payment stopped by the drawer” shall be affixed on the face of the cheque and return to the payee along with a usual Cheque return memo duly noted in the Cheque Returned Register under authentication of the Manger.

25.9 Revocation of The following procedures shall be adopted for revoking stop

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stop payment payment instructions:25.9.1 Verification of

signatureRevocation instruction shall be obtained from the account holder in writing and the signature thereof shall be verified by the Manager/Authorized Officer.

25.9.2 Revocation of stop payment instruction

Stop payment instruction shall be withdrawn form the respective account of the Computer.

25.9.3 Recording of revocation instruction:

A note to the effect shall be made in the stop payment register, relevant letter in the stop payment file, lists and other relative books/records and be authenticated by the authorized officer.

25.9.4 Filing of Revocation Letter:

The revocation letter shall be filed with the previous letter which contained stop payment instruction.

26. STATEMENT OF ACCOUNTS26.1 Statement to be

prepared and sent in each month:

Statement of account of Al-Wadeeah Current Accounts and Mudaraba Special Notice Accounts shall be kept ready for delivery to the client on demand or as per instruction of the client.

26.2 Noting the dates in which statements are to be sent to customers:

In case of accounts where statements are to be sent on particular dates, i.e. daily, weekly, fortnightly, monthly etc., a not to that effect shall also be made on the respective Computer of the account-holder for due compliance, and/or separate record of such accounts may be maintained for periodical submission of the statements.

26.3 Sending of Statements.

The statement shall be sent to the parties through Bank Messenger/Registered Post and such charge to be realized from the customers.

27. BALANCE CONFIRMATION27.1 Send balance

confirmation soon after half yearly and annual closing;

Balance confirmation letter generated by the computer shall be sent to all Al-Wadeeah, Mudaraba Special Notice and Mudaraba Savings Account holders, soon after half yearly and annual closing with request to return the annexed slip after confirming the balance noted thereon under their recorded signatures.

27.2 Verification of signatures when confirmation letter are received back:

When the confirmation letters are received by bank from the account holder, the signature of the account holders in the confirmation letters shall be verified by the authorized officer. In case of any different in the signature the same shall be sent back to the account holder with request to sign as per specimen signature recorded with the Bank.

27.3 Comparison of balances confirmed:

When the confirmation letter received and bank found that in order, the same should be referred to the respective Computer operator who will compare the balances entered therein with the balance shown in the Computer and record the date of receipt of the balance confirmation.

27.4 Safe keeping of confirmation letters:

All balance confirmations shall finally be kept systematically in the respective file placed in a cabinet except debit balance confirmations which shall be kept with the file of relative charge documents.

28. STANDING INSTRUCTIONS:The Authorized officer shall:

28.1 Verification of account holder’s signature on instruction

On receipt of any letter containing instructions for effecting periodical payments or remittances or any other instruction given by account holder, verify the signature of the account holder and marked the same on the letter.

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letter.28.2 Noting of

instructionsNote the instructions in the standing instructions Register and Computer.

28.3 Filling of letters File the letter in the standing instructions letter File.28.4 Execute

Instructions on due date

Execute those instructions regularly on due date and realize charges as per norms.

28.5 Due date diary Maintain due date diary properly.

29. PROCEDURE FOR CLOSEURE OF ACCOUNTS29.1 Parties to

submit application for closing of account

Whenever a customer approaches for closing of an account, he may be requested to send / submit an application along with the unused leaves of cheque book and mention the reason for closure of account.

29.2 Approval of the Manager

The Authorized Officer will bring the matter to the notice of the Manager who will personally see that the customer is closing account out of grievances that may possibly be redressed.

29.3 On being satisfied on the reason of closure, Manager will pass an order to that end.

29.4 Verification of signature of the customer

After having approval from the Manager, the signature of the account holder shall be verified by the authorized officer.

29.5 Enquiry of unused cheque leaves and balance of the A/C

The number of unused leaves of cheque book and the balance of the account shall be written on the application by the Computer Operator under his initial.

29.6 Checking of liabilities (if any) due to Bank

The Authorized Officer will make an enquiry to all Departments as to whether there is liability due to the bank. No account shall be closed before adjustment of liabilities due to the Bank.

29.7 Recovery of incidental charges:

The Authorized Officer will realize closing charges from the account and credit to “Income A/C : Other Income.”

29.8 The Authorized Officer will separate the account and keep with the list of closed account in Computer.

29.9 Affixing account closed stamp and noting in the Ledger/Register

The Authorized Officer will affix the “Account Closed” stamp on the AOF and signature card and enter necessary entries in the opening/closed register.

29.10 Supervising of the notings

The Authorized Officer will check the application, AOF, SS Cards and entries made in account opening/closed register and in the Computer and sign over the account closed stamp and initial the application and the register.

29.11 Filing of application

The Authorized Officer will remove relative AOF,SS Card and other documents from the relative files and preserve in closed accounts file. Separate file is maintained for AWCA, MND and MSD accounts etc.

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29.12 Destruction of unused cheque books

The Authorized Officer will destroy the unused cheque leaves by the help of General Banking In-charge duly recorded in the Cheque Book Register and Account Opening Register and Computer.

30. MAINTENANCE OF DIARIES30.1 Concerned officers will maintain proper diaries required attention to

a subject on a particular future date and ensure that no entries requiring action will be overlooked.

30.2 These diaries should record important matters like carrying out customers standing instructions or requests, formalities to be completed in respect of individual accounts, due dates of bill, customer’s promises for adjustment of their accounts etc. if any.

31. NOMINATION31.1 The depositor will nominate one or more persons as his nominee(s)

of the account. In case of more than one nominee, the share of each nominee should be stated.

31.2 Minors may also be named as nominee. In such case, a legal guardian should be appointed or an instruction to be made to pay the share to the nominee on maturity.

31.3 The depositor may nominate a new nominee canceling the previous nominee in writing.

31.4 In the event of the death of the nominee during the lifetime of the depositor and before the withdrawal of the account, the nomination shall be treated as cancelled.

31.5 The nominee(s) shall be entitled to receive the money according to apportionment only after the death of the depositor. In such case there shall be no need for Succession Certificate and the matter shall be settled at the branch level after obtaining under mentioned papers/documents form the nominee(s):

31.5.1 Application of the nominee(s)/nominated guardian.31.5.2 Death Certificate regarding the deceased depositor.31.5.3 Identification Certificate in favor of the nominee(s)/nominated

guardian by two valued account holder or two officers of the Bank or from the Chairman or Commissioner of local Municipality/Union Parishad.

31.5.4 Duly attested Passport size photographs of nominee(s) or nominated guardian.

31.5.5 Indemnity bond jointly executed by the nominee/nominees/nominated guardian along with two valued clients of the branch.

32 Deceased Account

Notice or knowledge of death, insolvency or insanity of a constituent precludes the bank from paying further cheques on his account even though these are dated prior to his death, insolvency or insanity. If the information is reliable the fact should be recorded in the Computer with the date and the source of information. In case of doubt caution should be noted and immediate enquiries be made to ascertain correct position.

32.1 Stopping of operations

In the event of death of the individual, all operations in his account shall be stopped forthwith. Necessary instruction is inserted in the computer.

32.2 Disbursement without

If the balance of the deceased account stand upto Tk. 25,000/- and it there is no monination, the same may be disbursed to the heirs of the

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Succession Certificate:

deceased without Succession Certificate after obtaining the following documents and after obtaining prior permission from BDMD, Head Office.

32.2.1 a) Application received from the heir of the deceased alongwith heir’s photograph duly attested by Local U. P. Chairman/Ward Commissioner.

b) Death Certificate.c) Heir-ship certificate duly issued by Local U. P. Chairman/Ward

Commissioner.Legal Opinion from the Bank’s Panel Lawer.

d) Letter of indemnity in Bank’s prescribed format affixing special adhesive stamp of appropriate value to be executed by the claimant(s) jointly and severally with two or more sureties each good for the amount to indemnify the Bank.

32.2.2 The indemnity should be recorded in Branch’s Document Register. However, a no objection certificate may be obtained form the major heirs, if required. The branch should be satisfied regarding the identity of the Legal heirs.

32.3 Disbursement with Succession Certificate:

In case of death of customer, the balance in his account should normally be paid to the nominee(s) and in absence of nominee(s) to the heir of the deceased on production of a succession certificate form the competent court. If a succession certificate from a competent court is submitted after the death of a customer, the balance in his account should be paid to the legal heirs of the decease in accordance with the succession certificate subject to proper verification of the same and after being fully satisfied and the identity of the claimants. Legal Opinion from the Bank’s Panel Lawer is to be obtained. Letter of indemnity in Bank’s prescribed format affixing special adhesive stamp of appropriate value to be executed by the claimant(s) jointly and severally with two or more sureties each good for the amount to indemnify the Bank. In all cases payment shall be made through Bank’s Payment Order. For more safety, payment may be made to the heir(s) mentioned in the succession certificate transferring balance to account of the heir(s) in the Bank. In this case; the heir(s) should be requested to open new account in the Bank if there is no account in the name of the heir (s).

32.3.1 Upon the death of one of the holders of a joint account, the balance of which is payable to the survivor(s), the account will of course continue but the survivor or survivors should be requested to transfer the balance into a new account in his or their own name(s), a fresh account opening form, specimen signature card etc. be taken. When the balance is not payable to the survivor(s) operation in the account must be stopped.

32.4 Liability to be checked:

Before making payment, Branch In-charge must be satisfied that the deceased or his heirs do not have any liability with the bank.

32.5 No payment to claimants against Will:

The balance lying to the credit of a deceased account shall not be paid to a claimant(s) against any Will left by that deceased.

Payment to claimants against Will:

Payment may be made to the claimant(s) on production of Probate Order in support of the Will from a competent Court.

32.6 Operation by Executors and Administrators disallowed:

The account of a deceased customer shall not be allowed to be operated on or transferred under the instructions on any Executor or Administrator or any claimant under indemnity letter or otherwise.

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33. Procedure for Issuance of duplicate instruments if DD, PO, MTDR, MMPRD and Education Deposit Scheme Receipt (DESR) etc. are lost:

33.1 Introduction Necessity for issuance of duplicate instrument may occur due to loss of original one, which may happen due to theft, fire accident or any other similar occurrence.

33.2 General Instructions:

i) Immediate caution mark and other precautionary measure shall be taken on receipt of the lost report whether verbal, written or over telephone having confirmed the particulars.

ii) Obtain a written application from the purchaser of the instrument stating the particulars of the lost instrument from his possession and the circumstances thereto.

iii) The purchaser of the lost instrument shall lodge a General Diary with the Local Police Station to this effect and a copy of the said G.D. shall have to be submitted to the concerned issuing branch along with the application for issuance of the duplicate instrument.

iv) The signature of the applicant / purchaser must be verified on the original form of application available at branch record by a designated officer.

v) Indemnity Bond duly stamped with proper value and worded to suit the purpose shall have to be obtained duly signed by the purchaser along with two sureties acceptable to the bank and each good for the amount:

vi) On the top of the duplicate instrument the following words shall have to be written in Red Ink “DUPLICATE ISSUED IN LIEU OF THE ORIGINAL NUMBER …………….. DATED…………… REPORTED LOST.”

The date of Original issue shall be the date of Duplicate Instrument.vii) “CAUTION AGAINST FRAUDULENT ENCASHMENT/

WITHDRAWAL” shall be marked in PO, DD, MTDR, MMPDR etc. issue Register/Advice Register/DD. Payable Register and in other records to safeguard bank’s interest.

33.3 Special Instrument for Issuance of Duplication Payment Order:

In cases of lost DD/Payment Orders an NOC (No Objection Certificate) shall have to be obtained from the beneficiary of the instrument stating that the concerned PO has not been deposited with them or has been lost form their custody which will be returned to the issuing Bank, if found later on and they have no objection in issuance and delivery of a duplicate to the purchaser by the Bank.

33.4 Special Instructions for Issuance of Duplicate Demand Draft:

i) In addition to the above General Instructions the following instructions shall strictly be followed while issuing Duplicate Demand Draft (DD).

ii) On receipt of the lost report or request for duplicate DD, the issuing branch will take up the matter with the drawee branch in writing requesting them to let know the fate of the DD specifically whether the DD was paid or not. If already paid nothing could be done and no duplicate shall be issued.

iii) But if the said DD remains un-paid, the drawee branch will immediately take precautionary measures against any fraudulent payment. They will mark STOP PAYMENT in Red Ink on DD payable Register/Computer and other records under authentication of authorized officer.

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iv) The paying branch having confirmed as regards particulars of DD & its advice will make all possible precautionary measures as mentioned above. Then they will send a letter under joint signature of two authorized officers in the following language to the issuing branch for their necessary actions:

“We have not yet paid DD No……………. dated……………. Issued buy your branch favoring.. ... ... for Tk……………… and exercised caution against fraudulent encashment/payment”vi) Having received confirmation from the paying branch the issuing

branch will take necessary steps in the light of the General Instructions giver in para 32.2 above.

vii) Care shall be taken by the issuing branch that no fresh entry shall be passed through SIB General Account and also no duplicate advise be issued.

viii). Copy of the NOC from the beneficiary of the instrument(s) as stated above (where applicable) will be obtained.

33.5 Stop Payments Circular issued by BDMD Head Office:

i) On receipt application of lost instruments from the purchaser the Issuing Branch will write a letter to BDMD Head Office requesting them for circulation of Stop Payment to all concerned and seek their permission to issue duplicate instrument.

ii). In case of DD such letter will be issued to BDMD on receipt of confirmation from the drawee branch that the DD remains unpaid at their end and exercised caution mark against thereof.

iii). Accordingly, as per recommendation of the branch, BDMD Head Office will issue a circular for all concerned to stop payment of the lost instrument requesting them to confirm the fate of the instrument at the earliest.

iv). After receiving confirmation from all concerned to the effect that the instrument remained unpaid to till date BDMD Head Office will issue a letter permitting issuance of Duplicate Instrument by the Issuing Branch.

v). Obtaining Approval from BDMD Head Office the Issuing Branch will issue Duplicate Instrument on observing all formalities mentioned above.

34. Preservation and destruction of old records34.1 Purpose: With the ageing of the branches records are being heaped up demanding

more space for storage. Since all records are not required to be preserved permanently as they may not be required for reference purposes for eternity. Therefore, most of the records shall have to be destroyed after a certain period and some records shall have to be preserved permanently for future reference.

34.2 General Instructions:

All records, files, registers which are not currently in use must be stored in suitable racks placed in the store room/strong room/godown after making necessary entries in separate folios for each type of records in the Old Records Register.

34.3 Old records should be stacked in such a way that the same can easily be located and found out as per sequence.

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34.4 Records for permanent preservation including files of peculiar nature/disputed matter/relating to litigation shall be stacked separately preferably in Steel Almira/Steel Trunk, if possible marking case Number.

34.5 At the end of each year, old records, after the expiry of the date of preservation, shall be destroyed by burning in presence of the officer-in-charge of the old records and the Manager of the branch or an officer nominated by him, on making proper entry in the Old Record Register. They shall also certify to the effect that “The records as appended below/as per list attached have been destroyed by burning in our presence on ………….”. The Certificate must be retained in the branch file for perusal of the Bank’s Audit & Inspection team.

34.6 After each 12 years old records of permanent nature shall be sent to Main Offices at district Head Quarter for storage in security storeroom to be destroyed in due course.

34.7 The Branch Manager shall nominate an In-charge for preservation of old records who will be mainly responsible in this regard.

34.8 A list of old records for permanent preservation and preservation for specific period has been shown in the Chapter-VII of this (G.B.) Manual.

35. Fire Extinguisher:35.1 Every Branch must have sufficient number of fire-extinguisher both in

the Branch premises and Bank’s godown (own/hired) and is kept in a convenient place for use in case of need.

35.2 There should be some bucket also with full of sands/water for emergent use to be placed in a suitable place for easy use in case of need.

35.3 The fire extinguisher should be refilled on or before the due date/expiry of the same.

35.4 The cost of refilling is debited to Expenditure A/C (Miscellaneous).35.5 Every officials/staffs should know how to operate the fire Extinguishers

and other Fire fighting equipments. Manager should take care of it.

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CHAPTER-X

AL-WADEEAH CURRENT ACCOUNT (AWCD)

1. Introduction Al-Wadeeah Current Account (AWCA) should be opened by the Branches in the name of parties who are competent to make a contract as outlined in the relevant paragraphs of chapter IX. Authorized officer should examine that particulars in the Account Opening Form (F-1) signed by constituents are recorded in the computer and the computer will generate an account number for the constituent and the account number should be noted on the specimen signature card, photograph and all other documents relating to the account. The relative Power of Attorney/Mandate, Standing Instructions etc, in any, should also be recorded in the Register/Ledgers/Computer.

1.1 The computer will facilitate searching account by names or any other related information.

1.2 Names of constituents should be written in the same manner (spelling) as written by constituents on the relative Account Open Form (AOF) in all related records of the Bank.

2. Shariah Principles: The operations of Al-Wadeeah Current Account is primarily guided by the principle of ‘Al-Wadeeah’ which means the Bank receives money from the client for safe-custody with the condition to return the money on demand by the constituent either through cheques or by any other acceptable means. The Bank has the discretion to realize charges from the client for safe keeping the money or for any other special services, if rendered.

3. Initial Deposit/ Minimum Balance:

Al-Wadeeah Current Accounts shall be opened with a minimum amount of Tk. 500 (Taka five hundred) which is also the minimum balance required to be maintained by the Account holder.

4. No Profit shall be allowed:

No Profit on Al-Wadeeah Current Account balances shall be allowed and the Bank at its own discretion uses the funds obtaining explicit consent from the depositors through acceptance of account opening rules to use their funds in amalgamation with Bank’s other funds at its own risk, without any risk to account holders.

5. Withdrawal Facilities:

Any amount can be deposited and withdrawn subject to provision of the minimum balance requirement during the banking hours.

6. Account Opening Form (AOF)

Applications for opening accounts should be obtained in the prescribed forms of the Bank, which should be filled properly and signed by the applicant. Partnership Deeds/Partnership letter, Memorandum and Articles of Association of Companies, Rules and Regulations of Associations and Societies etc. as the case may be should also be obtained with the Account Opening Form. Normally, the following documents/papers are to be obtained against different types of depositors in addition to application form F-1 and two passport size photographs of the Account holder(s) duly attested by the introducer.

6.1 Private Individuals (Single & Joint)

a) Specimen Signature Card (F-3) duly signed by the Account holder(s)/operator(s) in front of authorized officials.

b) In case of Joint Account, instruction regarding operation of the account must be clearly mentioned and be signed by all.

c) Letter of Authority/Mandate issued by account holder, if third

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party is authorized to operate the account by the account holder(s) along with the photograph of the Mandate holder duly attested by the Account holder.

d) Power of Attorney, if the same is executed in favor of an Agent/Manager for operation of the account.

e) Incase of Joint Account, option for payment of balance to either or survivors may be noted in the space provided for the purpose in the AOF as per request of the client.

f) Trade License in case of businessman.6.2 Private Firms

(Proprietorship/Partnership)

i) Specimen Signature Card (F-3) duly signed by the account holder(s)/operators(s) in front of authorized officials of the bank.

ii) Copy of upto date Trade License duly attested.iii) In case of Partnership firm, duly attested copy of Partnership Deed

should be obtained.iv) Firm’s Seal mentioning the status of the operators to be affixed.v) Mandate/Letter of Authority, issued by account holder, in case third

party is authorized to operate the account by the Account holder(s).vi) Copy of duly attested Power of Attorney in case the account is

opened by the Manager/Agent under Power of Attorney executed in his favor.

6.3 Limited Companies/ Statutory Bodies/ Corporations etc.

i) Specimen Signature Card (F-2) duly signed by the operator(s) of the account in front of the Authorized Officials of the Bank.ii) a) Copy of Certificate of Incorporation duly attested.

b) Copies of Memorandum and Articles of Association duly certified by the Registrar of Joint Stock Companies with up to date amendments and list of the Directors.

c) In case of public limited company, Certificate of Commencement of Business from the Registrar of Joint Stock Company.

d) Certified copy of resolution of the Board of Directors authorizing opening of the Account and operation of the same duly vetted by the bank official.

e) Particular of the Directors of the Company.f) Common seal of the company mentioning status of the operator(s)

should be affixed where necessary.iii) In case of Statutory body/Corporation etc.

a) Attested copy of the Charter of the Statutory body/Corporation.b) Attested copy of the Resolution of the Board authorizing

opening of the Account and operation of the same.6.4 Clubs/

Associations/ Societies/ Educational Institutions and Similar Organization

i) Specimen Signature Card (F-3) duly signed by the authorized operator(s) of the account in front of the authorized officials of the bank.

ii) Attested copies of Bye-laws/Rules.iii) Resolution of the Executive Committee/Managing Committee

authorizing opening of Bank Account and operation of the same (duly attested by the authorized official of the Bank.

iv) List of Members of the Executive Committee.v) Seal of the organization mentioning official status of the office bearer

authorized to operate the account should be affixed where necessary.

6.5 In order to ensure that no formalities are overlooked when an account is opened, the Computer operator will enter the particulars/information in the computer to be checked by the system and if the system finds any

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error, that should be rectified by the Manager/authorized Officer.6.6 The files containing account opening forms and documents should be

preserved under the custody of Officer-in-Charge/Manager of the Branch and be kept in the strong room or in a fire-proof cabinet/Almirah overnight.

7. Specimen Signature

The system of recording constituent’s specimen signatures must be such as to obviate the possibility of signatures being placed on recorded by an unauthorized person. All specimen signatures must be admitted with full signature by the Manager or the authorized officer at the time they are recorded. Blank spaces between the signatures on the cards should be filled in by drawing an oblique line to preclude the possibility of unauthorized signatures being inserted. Subsequent changes of specimen signatures may be allowed with written request of the account holder(s) and after proper identification. Such signatures should be admitted and attested with dated signature by the officers mentioned above. The number of signatures so admitted should be mentioned in the SS Card.

7.1 In case of instructions from Government, Semi-Government or other Organizations regarding changes in personnel operating Al-Wadeeah Current Accounts, which are usually conveyed to branches by means of letters in which the specimen signature of the newly authorized Persons are given, the following procedures my be followed:

7.1.1 When a letter is received in connection with any change of personnel operating an account, if should be ensured that signatory to this letter has the authority to advise this change. Thereafter the letter should be filed (pasted) along with the AOF and Signature Card containing specimen signature of the new signatory should be obtained.

7.1.2 The new signature countersigned by the predecessor must be authenticated by the Manager of an authorized officer in such a manner as to leave no chance for any replacement or tampering fraudulently with the signature received in the bank. Necessary precautions must be taken in regard to safe custody of the Letter with AOF as in the case of specimen signature card. A Note of the change should be made on the relative specimen signature card. The newly authorized person should submit two passport size photographs of his/her own duly attested by the predecessor.

7.1.3 The fresh specimen signature card received must be verified and recorded in the usual course and drawing normally be allowed only after the completion of the formalities.

7.2 Capacity of Singing

In case of individual account, the Account Opening Form and the Specimen Signature Card shall be signed by an account holder in his individual capacity putting similar Signature at the specified places and in case of Partnership firms, Proprietary concerns and Limited companies it is to be signed by the Proprietor/Partners/Authorized Person/Official in their capacity affixing seal. All other cases, persons opening the accounts shall sign both the AOF and the SS Cards in their official capacity.

8. Photographs: Two passport size photographs of each signatory duly attested by the Introducer of the Account must be obtained and recorded.

9. Introduction of Account:

Suitable introducer shall be obtained from a respectable person known to the Bank/Account holder/Bank Officers (Senior Officer) acceptable to the Bank.

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10. Introduction by Staff:

Introduction by the members of the staff shall be accepted.

11. No Presumption: The Branches shall not open any account without introduction even if the parties open such accounts with cheques drawn by them on any other Branch of the Bank and the signatures on the Cheque and Account Opening Form are similar, presuming that the Branch on which the Cheque is drawn must have obtained proper introduction.

12. Manager’s Prudence:

Manager shall use sufficient intelligence and prudence in ascertaining the genuineness of new account.

13. Cautionary Note: It shall be ascertained that the new account is not similar to any other account opened earlier, note to this effect shall be made on the Account Opening Form, if there is any similarity.

14. Instructions for Allowing Operations:

Clear instructions with regard to operations shall be noted at the specified place on the Account Opening Form and Specimen Signature Cards specially in respect of the Joint Account holders along with their signature.

15. Verification of Introducer’s Signature:

The signature of the introducer shall be verified by the Officer-in-Charge, Deposit Department/Authorized Officer (in case of big Branches). The Stamp “Signature Verified” shall be affixed near the signature of the introducer and the Authorized officer/In-charge of Deposits Department shall sign over the verification seal.

16. Recording of Initial Deposit:

Initial deposit should be in cash. However, under special circumstances, the Branch incumbent having been satisfied may accept cheque/DD/PO etc. as initial deposit in favor of or a DD payable to the Bank with whom the A/C is opened may be accepted.

17. Approval of Manager:

At the time of opening, the Manager’s approval shall be obtained on the Account Opening Form. In case of big Branches, the Officer-in-Charge, General Banking Department not below the rank of Principal Officer may also approve the Account Opening Form.

18. Admittance of Signature:

To admit the signature of the account-holder, the stamp “Signature Admitted” shall be affixed near his specimen signature on the Account Opening Form and the Specimen Signature Cards putting the signature of the bank officer over the stamp stating the number of signatures admitted in the specimen signature card (minimum two) for each signature.

19. Entry in the Register

The Particulars of Account Opening Form shall be entered in the Account Opened and Closed Register (B-12) and in the computer in serial order.

20. Allotment of Account Number & Authentication:

The Account Number allotted to the new account shall be given on Account Opening Form & Signature Specimen Card at the specified place on the front side of the account holder photographs. The account number shall be authenticated by the Authorized officer and account opened and closed Register/Computer entry shall also be initialed/Verified by him.

21. Supply of Pay-In-Slip:

The customer shall be supplied with deposit pay-in-slip (F-7) and requested to deposit the money with the Cashier by filling up the pay-in-slip duly signed by the depositor or his authorized representative in the specified space.

22. Requisition Slip for Cheque Book:

A Cheque Book Requisition slip need not be supplied to the customer at the time of opening the account unless it is asked for.

23. Issuance of Cheque Book

Cheque Books shall be issued on submission of application through Bank’s prescribed Cheque Book Requisition Form (F-5) only after

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completion of the Account Opening formalities in all respects & after due verification of account holder’s specimen signature.

23.1 The issue of chequebooks will be under the direct charge o the Manager or an authorizing officer who will keep all such books in his personal custody; Cheque Book is normally issued after the customer submits a requisition slip duly signed by him. Whenever a chequebook is issued, date of issue to be recorded in Register (B-13) and will be initialed by the officer concerned. The recipient’s signature (or the signature of the supervision Officials/In-Charge of dispatch for cheque books sent by post) will be taken in the acknowledgement column.

23.2 In the event of loss of cheque book, fresh cheque book may be issued against written request from the customer. The customer shall lodge a General Dairy (GD) to the local Police Station and the original copy of the GD shall have to be submitted with the application. He should personally receive the instrument with his signature in the Cheque Book Issue Register. The Authorized Officer must verify his signature. Numbers of the lost cheques should be recorded into the Computer so as to obviate the possibility of any payment against the lost cheques.

23.3 When a cheque book is issued to a constituents messenger or a third party either against or requisition slip or a letter of request, care must be take to see that THE PRESENTER IS DULY IDENTIFIED TO THE BANK and that a cheque book was handed over to his representative as requested and whose signature has been attested by the constituent. A cheque book must NOT be issued to an unknown person, or even if he produces the Bank’s requisition slip signed by the customer, unless the signature of the bearer is duly attested by the account holder.

23.4 All acknowledgements for chequebooks must be noted in the Cheque Books Issue Register (B-13). The Authorized Officer should frequently scrutinize this book. When an acknowledgement for a chequebook is not promptly received, caution (in pencil) should be made noted in the register/computer to pay particular attention to drawer’s signature and other particulars on the first cheque presented from it. A reminder should also be sent to the constituent and if this produces no result, it should be followed by a second reminder by registered post acknowledgement due.

23.5 Constituents should be requested to return their unused cheques when their accounts are closed or transferred to other offices of the Bank. When an account is transferred to another branch, it is important to inform the branch concerned of the numbers of the constituent’s current unused cheques unless the book has been returned.

23.6 On return of a partly used cheque book, the number of the unused cheques therein should be entered in the Cheque Books Register in a separate portion as broken cheque books or loose cheques and the officer in-charge of cheque book should destroy all such unused blank cheques and the requisition slip contained in the Cheque Book with the approval of and in the presence of the Manager. The fact of such destruction should be recorded under the signatures of the officer concerned and the Manager.

24. Sending of AOF to Computer Operator:

The Account Opening Form shall be sent to the Computer Operator for opening Al-Wadeeah Current Account in the Computer.

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25. Title of Account in Bold Letter:

The title of the account and other particulars shall be written in bold letters neatly in the Computer.

26. Entry in the Computer giving proper space:

Cheque Book numbers with series shall be entered in the space provided for the Computer.

27. Classification Deposit Ownership: Code of Category

To classify deposit ownership, a stamp “Code & Category” shall be affixed on the AOF and the relative code number and the category of the account be marked in the Computer.

28. Authorized of the Account in the Ledger/Computer:

The opening of the Account and issue of Cheque Books in the Ledger shall be authenticated by the Manager/Officer in-charge, Deposits Department by signing across the title of the Account and in the Cheque Series space provided there. Account Opened & Closed Register shall also be initialed by him.

29. Maintenance of AOF & S. S. Cards:

Account Opening Form shall be filed in a pasting file in numerical order. The specimen Signature Cards shall be placed in the Card box in numerical order under separate controls of authorized officer. Cabinet containing specimen signature card must always under lock of the authorized officer and must be placed in the strong room or in a secured place overnight.

30. Letter of thanks to Introducer/ Account Opener:

A letter of thanks (F-30) shall be sent to the introducer and the account opener under Registered AD Post/Courier and the office copy of the letter of thank shall be preserved with the account opening form.

31. Checking of Account Opening Form:

All new accounts that are opened during the day, shall be personally checked by the Manager/Officer In-change, General Banking Department in case of big Branches at the close of business of each day.

32. Points of Checking:

Authorized Officer will check the particulars of the new account like; ascertain the introductions, the initial deposit, nature of business of party and other paper/documents such as the Partnership Deed or Partnership letter photographs and Resolution in case of Ltd. Companies etc. are obtained.

33. Passing & Payment of Cheques:

The following procedure will be observed in passing of cheques for payment from Al-Wadeeah Current A/C (AWCA): -

33.1 In the counter, on receipt a cheque for encashment the authorized official immediately observes that the cheque relates to the branch and bears the signature at appropriate place with other material information in order. Then he will obtain a signature of the recipient in the overleaf of the cheque with his initial in the same and pass to the Computer Operator.

33.2 Before the cheque will be scrutinized by the Computer Operator who must satisfy himself that it is in order in every respect, that it is form the drawer’s current cheque book as record in the Computer folio and that the amount does not exceed the credit balance of the account.

33.3 The computer operator will then post the amount in the Computer, enter the transaction Tracer number at the top right corner of the cheque and initial the cheque against the word “Posted” to signify that it is in order and has been duly posted.

33.4 The cheque will then be sent to an authorized Passing official who after satisfying himself that it is in order in every respect, will pass it for payment with full signature, after due verification of the signature(s), for cash or for transfer. If the cheque is for payment in cash, put “PAY CASH” seal and if for transfer put, “TRANSFER” seal and then send it to the another authorized officer for 2nd cancellation (If required)/ then

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to Payment Cashier/Transfer Scroll writer as the case may be.33.5 Care must be taken that debits to an account are not allowed against

unclear cheques without the authority of the Manager/Authorized Officer. The credit slips for cheques on local banks should be retained by a responsible official until the proceeds are received.

33.6 All precautionary measure should be taken when a party having little means as evident from previous transactions presents cheques for large amount for collection.

33.7 In order to have the protection provided under Section 85 of the Negotiable Instruction Act, 1994 the Bank should make payment in due course in accordance with the apparent tenor of the instrument, in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein.

33.8 Cashier may on no account pay cash of Officials or Messengers on behalf of customers said to be waiting in another part of the office. In case where it is considered necessary to pay cash to customers at other departments cashier must personally be satisfied in this regard.

34. Cheques Referred and Returned:

No cheques presented for payment should be honored until there remains credit balance ensuring minimum balance. This type of cheque must be entered in the Cheques Referred and Returned Register No. (B-50) with full particulars of cheques. The cheques should then be sent with the register to the Manager who will write “Return” in the register under his initials. Then the cheque will be returned to the presenter unpaid with due acknowledgement.

34.1 When cheques are returned for insufficient funds, the relative memos must be signed by the Manager and for other reasons by the Authorized Officer himself. Before returning the cheque, however, if possible particularly when the account holder is a man or status having good transactions. However charge at the approved rate to be realized to the debit of the concerned account.

34.2 The Bank should protect its customer by advising him direct in the event of cheque drawn by him is dishonored because of the signature giving ground for suspicion.

34.3 Constituents should use only the cheque forms specifically issued to them for drawing funds from their accounts. Drawing from the accounts against letter of request should be discouraged.

34.4 When a transfer for remittance is ordered by letter, a voucher quoting the number and date of the letter will be made out and signed by two authorized passing officials. The letter should then be filed with the relative voucher after complying with other instruction, if any, contained therein.

35. Computer Entries: The names of payees of cheques need not be entered in the Computer PROVIDED the numbers of the cheques are posted.

36. Balancing of Al- Wadeeah Current Accounts:

Balance of all Al-Wadeeah Current Accounts maintained in the Computer must agree with the respective balances of the accounts in the Clean Cash Book and General Ledger daily.

36.1 All daily transactions of Al-Wadeeah Current Account must be checked by the Authorized Officer other than the Computer Operator/Passing Officer.

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37. Nomination: The same procedure shall be applicable as outlined in the Chapter – IX.

38. Statement of Accounts:

Every Al-Wadeeah Current Account constituent will be furnished periodically (at least monthly) with a statement of his account.

38.1 Statements of accounts may be kept for convenience in loose leaf binders which must be kept overnight under lock and key.

38.2 The Computer Operator should generate monthly statements of Computer Accounts after end of each month.

38.3 Statement of Account should be sent to Constituents on demand. In the absence of instructions to the contrary statement sheets should be sent out as they are completed without waiting till the end of the month. The names of payees of cheques need not be entered except when constituents specially ask for this to be done. Summations of withdrawals and deposits should invariably be shown in the statements of accounts.

39. Balances Confirmation:

The same procedure is applicable in this account as given in Chapter – IX.

40. Stop Payment Instructions:

The same procedure is applicable in this account as given in Chapter – IX.

41. Standing Instructions:

The same procedure is applicable in this account as given in Chapter – IX.

42. Transfer of Accounts:

Upon receipt of the written request from the account holder along with unused chequebook, the account will be transferred from one Branch to another. The account opening form etc. signed at the time the account was opened and any forms and documents signed subsequently which are necessary for its proper conduct at the time of transfer should be forwarded through a letter under registered post/courier to the Branch to which the account is transferred together with the relative IBCA, specimen signature card(s) and standing instructions, other documents, if any.

43. Closure of Account:

The same procedure will be followed as given in Chapter – IX.

44. Deceased Account:

The same procedure is applicable in this account as outlined in given in Chapter – IX.

45. Rules governing the Account (synopsis):The rules governing the operations of Al-Wadeeah Current Account are printed on the relevant Account Opening Form (F-1). This should be read carefully and compiled meticulously. The Rules Stated in Al-Wadeeah Account Opening Form (AOF) are as under:

45.1 Deposit is accepted on the basis of ‘Al-Wadeeah Principle’ and the Bank invests these funds together with other deposits based on Islamic Shariah. The Depositor is not entitled to get share of any profit generated from the investment of the deposit which the Bank utilized with the other deposits of the Bank.

45.2 Initially at-least an amount of Tk. 5000/- is required to be deposited and an introduction of Account is to be given to the satisfaction of the Bank of opening of an Al-Wadeeah Current Account.

45.3 The account is debited every half yearly @ Tk. 50/- on account of incidental charge if balance comes below Tk. 500/- at any time within the half year. When an account is close, Tk. 50/- is realized as closing charge.

45.4 Initially a customer has to apply for a new chequebook in a separate

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Cheque Requisition Form (F-5) and subsequent application is to be made through Cheque Requisition Slip supplied with the cheque book.

45.5 Money can be drawn form the account by issuing a cheque supplied by the Bank. In this case relating sections of Negotiable Instrument Act are applicable.

45.6 A customer has to count the number of cheques leaves when he receives his cheque book and must keep it in a safe place so that no cheque can be stolen/lost. In any fraud or forgery happens with a stolen/lost cheque, the Bank will not be liable.

45.7 The account holder must sign on each cheque according to the specimen signature supplied to the Bank, If the specimen signature changes, the Bank must be informed immediately and the signature should be replaced.

45.8 The Bank allots a number of each account of the depositors mentioning the account number and title. A depositor has to fill up a prescribed deposit slip to deposit cash or cheque and obtain counter foil of the deposit slip with the signature of an authorized Bank officer. A cheque should be crossed while being deposited.

45.9 The Bank record the instruction of customer to stop payment of a cheque with due care, But if it is paid by mistake, the Bank will not be liable.

45.10 The Bank supplies monthly statement of account without realizing any charge from the customer.

45.11 The Bank can debit the customer’s account against necessary expenditure under advice to the customer.

45.12 The Bank reserves the right to close an account without showing any reason, particularly the non-profitable accounts which are running with very small balances for a long time and which may be closed without notice realizing closing charges as per bank’s existing rules.

45.13 If customer’s address is changed, the Bank must be informed immediately. The Bank communicated the customer through the post office. The Bank will not be liable if any letter or money sent by post was not delivered in time/non delivery.

45.14 In a joint account, if a person expires, the operation of this account shall be stopped forthwith. The balance will be paid after making a revised agreement with the successors of the deceased or a new account may be opened by the living person(s)

45.15 The Bank makes debit or credit to the customer’s account with care. It can debit the wrongly credited amount from the account.

45.16 The reserves the right to change, amend or modify any existing rules at any time and the customer is bout to abide by the rules.

CHAPTER-XI

MUDARABA SAVINGS DEPOSIT (MSD) ACCOUNT

1. Shariah Principle:

The Operations of Mudaraba funds i.e. Mudaraba Savings Accounts, Mudaraba Special Notice Accounts, Mudaraba Term Deposit (Receipt)

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Accounts, Mudaraba Hajj Savings Accounts, Mudaraba Savings Bond, Mudaraba Special Savings (Pension) Scheme and Mudaraba Monthly Profit Deposit Scheme Accounts and Mudaraba Mohur Savings A/c etc. are conducted according to Mudaraba principle/adhering to the principles of Shariah. The depositor is the ‘Shahib Al-Mal’ (Owner of the fund) and the Bank is ‘Mudarib’ (Organizer/Manager). The Bank is authorized to invest the Mudaraba funds at the risk of the ‘Shahib Al-Mal’ (depositor). The Bank will arrange proper deployment of the fund. The depositor has got no say in the management. Total profit resulting from such investments will be distributed between the Bank and the depositor as per agreed ratio

2. Nature of Deposits:

An individual or individuals in single or joint name and in the name of Academic Institution, Club, Association, Socio-economic Organization etc. may open this account. This type of deposit is subject to share of profit/loss in the Bank’s investment/business using Mudaraba fund. The weight-age of profit/loss shared by Mudaraba Savings Deposit Account holders is higher than the rate shared my Mudaraba Notice Deposit Account holders.

3. Opening of Accounts:

As the name indicates Savings Accounts are mainly intended for saving of funds of the depositors and so, such accounts should be operated with certain limitations as prescribed in the Mudaraba Savings Accounts Rules from time to time. All officers of the Bank should be fully conversant with the MSD rules. Application for opening of Mudaraba Savings Account should be obtained in Bank’s prescribed Form (F-2)

3.1 Restriction for opening:

Opening of more than one account in the name of same person should not normally be allowed. Managers may, however, permit depositors to have more than one Mudaraba Savings Account jointly with other persons at the same branch provided that the spirit of the savings Rules is not abused.

3.2 Opening and Operation of Joint Account

When an account is opened in the name of two or more persons, both or all of them must sign the application form duly completed and the account will be operated in accordance with the instructions in the application form, unless instructions are rescinded by either or any one of them. In case of death of one of the accountholders, the operation of the account shall have to be stopped forthwith. Payment of the balance may be disbursed as per succession certificate to the successors of the deceased. Afterwards a new account may be opened by the survivors.

3.3 Opening and Operation of Minor’s A/C

The following procedure should be followed when an account is opened by submitting application form F-2 in the name of a minor jointly with his/her guardian:-

3.3.1 The heading of the account should be :-“Mr. ………………… (Guardian) and ……………… (Minor) payable to either or survivor. The date of birth of the minor is ……………………… attains majority on ………………… as per Account opening form No. ………. Dated ………….”

3.3.2 The date of attaining majority should be noted at the top of the relative ledger folio/computer.

3.3.3 Cheque Book should not be issued on such accounts unless the adult account holder intends to sign all cheques himself or jointly by himself or jointly by himself and the minor.

3.3.4 In the case of death of adult member, the money will automatically become payable to the minor observing the necessary documentation

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formalities.3.3.5 In cases where a guardian has been appointed by the court, money can be

withdrawn only by the legal guardian. A minor for whom a guardian is appointed by the count attains majority on completion 21 years of age under the Guardian and Ward Act (Act – VIII of 1890). On the death of the guardian, the minor will have to apply to the court for payment of the money to him/her.

3.3.6 When an account is opened under court orders, a certified copy of the order should be filed along with the Account Opening Form.

4. Minimum Deposit/ Balance

Mudaraba Savings Deposit Accounts shall be opened with a minimum initial deposit of Tk. 100/- and which is also the minimum balance for sharing profit/loss.

5. Photographs/ Introduction:

Two passport size photographs duly attested by the introducer of the account opener(s) must be obtained and recorded while the introducer should be a respectable man known to the Bank/ preferably to be an account holder. For details Chapter IX may be seen.

6. Withdrawal Formalities:

Any amount can be deposited in the account but money can be drawn without notice, two times in a week but maximum six times in a month up to 25% of existing balance or Tk. 20,000/- whichever is less or as per rules framed by the Bank from time to time.

7. 7 (Seven) Days Notice:

For drawing of amounts higher than the prescribed limit, as above, the customer shall be required to serve a 7 (seven) days prior notice in writing. In that case the remaining balance in the account after withdrawal of the notice amount shall share in the profit/loss of the Bank provided the balance amount is Tk. 100/- or above. On emergency and genuine need, any amount can be paid without notice but the account holder will have to forgo profit for the month only.

8. Rate of Profit: Profit on this account shall be allowed at the rate advised by FAD, Head Office from time to time after finalization of Account of the Bank on minimum monthly balance between the 6th day and the last day of a month.

9. Incidental Charge:

Incidental charge is realized half-yearly basis when the balance comes below Tk. 100/- at any time as per rate prescribed by the bank from time to time and now the chargeable amount is Tk. 10/- only.

10. Forfeiture of Profit

The customer shall forfeit his right to share in profit if the provision of para 6, 7, and 8 are not followed.

11. Supply of Cheque Book:

Generally withdrawals from the accounts are considered through the cheque supplied by the Bank without cost. Monthly statement is given to the customer.

11.1 Cheque Books will be issued to the account holder only after completion of all formalities regarding opening of the Account with the initial deposit.

11.2 Stock of Cheque Books must be kept in the custody of the Manager or authorized officer who will be responsible for the issue thereof in accordance with the instructions laid down in the (earlier) Chapter – IX.

12. Specimen Signatures:

Specimen signatures of the depositors will be obtained at the time of opening of the account and must be admitted under the signature of the Manager or the concerned authorized officer. For illiterate persons, Left-hand Thumb Impressions (LTI) for man and Right- hand thumb Impressions (RTI) for Woman, witnessed by a person know to the Bank may be accepted. Visible marks on the body, such as moles, scars, etc.

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may be noted for identification purposes. The same precautions must be taken to prevent unauthorized specimen signatures finding their way into the Bank’s records as are applicable to Al-Wadeeah Current Accounts.The LTI or RTI account holder will be physically present in the Bank to receive cash drawing from his/ her account by the cheque supplied to him/her. The authorized officer will verify the genuineness of the account holder and make payment upon his satisfaction so that no fraudulent payment is made.

13. Balancing of Accounts:

The balance of Mudaraba Savings Accounts must be taken out and balanced once a month at irregular intervals. An authorized officer must check such balancing. Computer sheet must be checked by the authorized officials and the total balance is to be verified with the corresponding figures of Clean Cash Book and General Ledger.

14. Application of Profit:

Profit/Loss (Provisional) will be applied on half yearly basis to all Mudaraba Savings Accounts at the prescribed rates and on balance maintained during the month as specified by the Head Office (from time to time). Final rate of Profit/Loss will be declared and adjustment, if any, to be made on completion of the Balance Sheet of the Bank for particular year.

14.1 When a depositor wishes to close his Mudaraba Savings Account, an application in this regard should be obtained from the account holder. Profit/Loss accrued may be applied direct to the debit of Profit paid on the depositor against his receipt. There is no objection to the depositor certificate will be obtained. The unused chequebook leaves will be taken back, and be destroyed in presence of the Manager or authorized officer duly recorded in the cheque Book Register, Account Opening Register/Computer/Ledger.

15. Standing Instruction:

The same procedure shall be applicable as outlined in Chapter IX

16. Nomination: The same procedure shall be applicable as outlined in in Chapter IX17. Deceased

Accounts:The same procedure shall be applicable as outlined in the in Chapter IX

18. Transfer of Accounts:

Mudaraba Savings Accounts can be transferred from one branch to anotherBranch, free of charge. The following procedures should be followed in this regard.

18.1 Upon receipt of the written request from the account holder along with unused cheque books and passbook, if any, the transferring officer will close the account in he Mudaraba Savings Account ledger/Computer, the last entry in the Computer being “withdrawn Tk…….. by transfer of account to ………… Branch”. The computer sheet will be signed under this entry by authorized supervision official and forwarded together with the relative account opening form, specimen signature card, product sheet etc. and an Inter-Branch Credit Advice for the amount of the balance to the branch to which the account is transferred.

18.2 The receiving branch will re-open the account in their register/computer/ledger and the relative voucher be passed with “Deposited Tk ……… by transfer of account from ……….. Branch”. The account will be given a new serial number at the Branch where the account is transferred. The new number of the account should be recorded on the account opening form, specimen signature card and the ledger folio / Computer duly authenticated and also be intimated to the depositor (A/C

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holder) immediately.18.3 It is advisable to transfer the Account from 1st to 5th day of the month so

that product of that month is considered for profit by the opening Branch.18.4 If the account is transferred after 30th June of the Year then the product up

to June shall have to be mentioned for onward noting of the same by the branch where the account it transferred.

18.5 It the final rate of profit of the preceding year is yet to be declared then the product of the last year to be mentioned in the forwarding letter to facilitate disbursement of enhanced profit in due course.

19. Bank’s Discretion:

The Bank considering unsatisfactory transaction in any account may stop its operation or may close it at its discretion.

19.1 The Bank can change, modify, extend or cancel any rule or such account and the depositor is bound to abide by it.

20. Stop Payment of Cheque(s):

Similar procedure is applicable in this account as outlined in Chapter IX

21. Closing of Accounts:

The Bank reserves right to close, without previous notice, an account which, in its opinion is not being operated properly or for any other reason without being bound to disclose the reason to the account-holder. An account holder wishing to close his account must apply in writing and will surrender his unused cheque leaves. This balance will then be paid to the account holder by cheque for the available balance with accrued profit, if any, after deduction account closing charge. For details section 29 of Chapter-V may be seen.

22. Balance Confirmation:

Similar procedure shall be applied as per section 27 of Chapter -V.

23. Sector Code: Appropriate sector code provided in SBS Manual to be inserted in the space provided for the propose I the account opening form.

24. Other Formalities:

Similar procedures as explained in case of Al-Wadeeah Current Accounts shall be adopted with the following exception:

24.1 Books and Forms: Separate Account Opening Form (F-2), Pay-in-slip (F-7) and ledger/ computer shall be used.

24.2 Account Number: The Account number shall bear “MSD” in the prefix.24.3 Introduction: Introduction by a satisfactorily conducted Mudaraba

Account holder shall also be accepted.24.4 Cheque Book: Mudaraba deposit A/C cheque book shall be used for

withdrawal of deposit.24.5 Letter of Thanks (F-30) shall be sent to the account holder & the

introducer under Regd. A/D post/currier.

CHAPTER-XII

MUDARABA NOTICE DEPOSIT (MND) ACCOUNT:

1. Shariah Principle: The Operations of Mudaraba Notice Deposit Account is subject to Mudaraba principles of Shariah as detailed in Chapter IX.

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2. Nature of Deposit & Initial Deposit

The Nature of the deposit and its operation may be categorized as that of Al-Wadeeah Current Account excepting that these deposits share profit and bear loss of the Bank’s over all performance and its withdrawal is subject to (seven) days prior notice for any amount. Here, minimum initial deposit and balance have been fixed at Tk. 25,000/- (Twenty five thousand) only.

3. A.O.F. & S.S. Card

AWCA Opening Form (F-1) and Specimen Signature Card (F-3) are used in this case.

4. Photographs: Two Passport size photographs of the operator(s) of the A/C duly attested by the Introducer must be obtained and recorded for use in case of need.

5. Introduction of Account

Suitable introduction shall be obtained from a respectable person known to the Bank/Account holder/Bank Officers acceptable to the Bank. For details Chapter IX may be seen.

6. Introduction by Staff:

Introduction by the members of staff shall be accepted.

7. Introduction by Mudaraba Savings A/C Holder:

Introduction from Mudaraba Savings Account-holders shall not be for opening a Mudaraba Special Notice Account. However, the branch incumbent at his own discretion may accept introduction by a Mudaraba Savings Account holders who maintains a good average balance for long time or that such account-holder is personally known to him as a reputed one.

8. Admittance of Signature:

The Manager/Officer-in-Charge of deposit section/authorized officer shall admit the signature of A/C. holder putting his Signature on the stamp ‘Signature Admitted’ affixed near the specimen signature of the account holder AOF and SS Cards.

9. Verification of Signature of Introducer:

Introduction of the AOF shall be obtained and signature of the introducer shall be verified by the authorized Officer as done in case of Al-Wadeeah Current Account.

10. Manager’s Approval:

The Manager’s approval shall be obtained on the Account Opening Form.

11. Allotment of A/C Number.

The Account Number allotted against the new account shall be giver on AOF, SS Card and Cheque requisition slip using “MND” in the prefix.

12. Specimen Signature & Capacity of Signing

The system of recording constituent’s specimen signatures must be such as to obviate the possibility of signatures being placed on recorded by an unauthorized person. All specimen signatures must be obtained and admitted with full signature by the Manger or the Authorized Officer at the time they are recorded. Drawing an oblique line to preclude the possibility of unauthorized signatures being inserted should fill in blank spaces between the signatures on the cards. Subsequent changes of specimen signatures may be allowed with written request of the account holder(s) and after proper identification. Such signatures should be admitted and attested with dated signature by the officers mentioned above. The number of signatures so admitted should be mentioned in the S. S. Card.

12.1 In case of instruction from Government, Semi-government or other Organizations regarding changes in personnel operating the accounts, which are usually conveyed to branches by means of letters in which the specimen signatures of the newly authorized Person are given. The following procedures must be followed:

12.1.1 When a letter is received in connection with any change of personnel operating on an account, it should be ensured that signatory t this letter has the authority to advise the change. Thereafter, the letter should be filled (pasted) along with the AOF and duly signed SS Card should be obtained. The Manager or an authorized officer in such a manner as to leave no

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chance for any replacement or tampering fraudulently with the signature received in the Bank must authenticate the new signature countersigned by the predecessor. Necessary precautions must be taken in signature card. A note or the change should be made on the relative specimen signature card with dated signature. The newly authorized person should submit duly attested two passport size photographs of his/their own duly attested by the predecessor.

12.1.2 The fresh specimen signature card received must be verified, admitted with date and recorded in the usual course and drawings into account normally be allowed only after the completion of the required formalities, if any.

12.1.3 In case of individual accounts, the Accounts Opening Form and the Specimen Signature Cards be signed by an account-holder in his individual capacity putting similar Signatures at the specified places and in case of Partnership firms, Proprietor concerns and Limited companies it is to be signed by the Proprietor/Partners/Authorized person/Official in their Capacity affixing seal of the firm/company stating the status/capacity of the signatory. In all other cases, persons opening the accounts shall sign both the AOF and the SS Cards in their official capacity.

13. Supply of Pay-in-Slip & other formalities

Mudaraba Deposit A/c Pay-in-slip (F-7) book shall be supplied to the Account holder with a request to deposit the money with the cashier. All other opening formalities/procedures will be similar as explained in Al-Wadeeah Current Account at Chapter-X. Al-Wadeeah Current Account Cheque Book will be issued for MND.

14. Profit/Loss: Profit and Loss is calculated on daily minimum balance but no profit will be allowed while the balance comes below Tk. 25,000/- and in case of any withdrawal without notice the customer will be paid profit on the minimum balance for that month (calculating on daily product basis) as per rate of profit declared by FAD, Head Office from time to time.

15. Incidental Charge:

Incidental charge as per rate fixed by Head Office will be realized from the account at every half yearly closing while the balance comes below Tk. 25,000/- at any date of the concerned half-year.

16. Withdrawal Facilities:

Any amount can be deposited and withdrawn subject to provision of the minimum balance requirement during the banking hours.

17. Rate of Profit: Profit will be allowed at provisional rate at every June and December subject to adjustment of the same with the final rate declared by the bank. The enhanced amount of profit, if any, to be paid by crediting the customer’s account or any be paid through payment order if the account is closed earlier. Similarly, the Bank may realize the excess amount of profit, if any, paid earlier to the customer(s) for adjustment of the final rate.

18. Issuance of Cheque Book

Cheque Books shall be issued on submission of application through Bank’s prescribed Cheque Book Requisition Form (F-5) only after completion of the Account Opening formalities in all respects & after due verification of party’s specimen signature. Other procedures including issuance of Al-Wadeeah Cheque Book as laid down in Al-Wadeeah Current Account. In Chapter- will be followed.

19. Sending of Documents to Ledger Keeper /Computer Operator:

After completion formalities in all respects, the Account Opening Form along with Specimen Signature Cards shall be sent to the Computer Operator for opening of the Account in the Computer.

20. Title of Account in The title of account and other particulars i.e. address, telephone, telex, fax

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bold letters: number shall be written in bold letters neatly and systematically in the Computer.

21. Entry in the Computer giving proper space:

Cheque Book Numbers with series and prefix shall be entered in the space provided for in the Computer.

22. Provision for Nominee:

The individual joint account holder may nominate nominee to receive the amount after his/their death as per Bank’s rule.

23. Classify Deposit Ownership

To classify deposit ownership/category of deposit “Code & Category” shall be marked in the Computer.

24. Maintenance of A.O.F. & S.S. Cards

Account Opening Form shall be filled in a pasting file in numerical order. The Specimen Signature Cards shall be placed in the Card Box in numerical order under separate control of Authorized Officer. Cabinet containing specimen signature card must be placed in the strong room/secured placed overnight. The Account Opening Forms file should also be placed in the strong Room/Secured place under Joint custody. The movement of the File(s) except file(s) in Current use shall be duly recorded in Document Ex-custody Register (B-112).

25. Letter of Thanks to Introducer & Account Opener:

Letter of Thanks (F-30) shall be sent to the introducer and the account opener on the prescribed form under Registered AD post/Courier.

26. Checking of Account Opening Form:

All new accounts that are opened during the day, shall be personally checked by the Manager/Officer In-charge, General Banking Department in case of big Branches at the close of business of each day.

27. Points of Checking:

Authorized Officer will check particulars of the new account like the introductions, the initial deposit, nature of business of the party and other papers/documents such as photographs, Trade License, Partnership Deed, or Partnership letter and Resolution in case of Ltd. Companies etc. (are obtained).

28. Payment and Passing of Cheques:

The same Procedure is applicable in this account as outlined in Chapter-X of Al-Wadeeah Current Account.

29. Cheques Referred and Returned:

The same Procedure is applicable in this account as outlined in Chapter-X of Al-Wadeeah Current Account.

30. Computer Entries:

The name(s) and the payee(s) of cheques need not be entered in the Computer Provided the numbers of the cheques are posted.

31. Balancing the MSN:

The same Procedure is applicable in this account as outlined in Chapter-X of Al-Wadeeah Current Account.

32. Statement of Accounts:

The same Procedure is applicable in this account as outlined in Chapter-X of Al-Wadeeah Current Account.

33. Balance Confirmation:

The same Procedure is applicable in this account as outlined in Chapter-X of Al-Wadeeah Current Account.

34. Stop Payment: The same Procedure is applicable in this account as outlined in Chapter-X of Al-Wadeeah Current Account.

35. Standing Instructions:

The same Procedure is applicable in this account as outlined in in Chapter-X of Al-Wadeeah Current Account.

36. Deceased Accounts:

The same Procedure is applicable in this account as outlined in Chapter-IX.

37 Nomination: The same Procedure is applicable in this account as outlined in Chapter-IX.

38. Transfer of Accounts:

The same Procedure is applicable in this account as outlined in Chapter-XI of Mudaraba Savings Account.

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39. Dormant Accounts:

The same Procedure is applicable in this account as outlined in Chapter-IX.

40. Inoperative Accounts:

The same Procedure is applicable in this account as outlined in Chapter-IX.

41. Unclaimed Accounts:

The same Procedure is applicable in this account as outlined in Chapter-IX.

42. Closing of Accounts:

The same Procedure will be followed as per Chapter-IX.

CHAPTER-XIII

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Rules Governing Mudaraba Term Deposit (MTDR)

1. MUDARABA Term Deposits are accepted by the bank with a sum of Tk.5000 or above (multiple of 1000) from individuals (single and joint), firms (proprietorship/partnership), limited companies, autonomous bodies, charitable institutions, association, education, institution, local bodies, trusts, etc, against issuance of non transferable receipts in acknowledgement of MTD received. MTD Account may be opened in the names of minors jointly with their guardians, for example :

Received from Mr. X . Guardian of Mister/Miss ………………………….(minor)

2. The Mudaraba Term Deposits are accepted for periods of 12, 24, & 36 months. Weightage on the rate of return is given to deposits of longer maturity.

3. The bank reserves the right to invest the funds received in the Mudaraba Term Deposit Accounts, in its sole judgement, if any interest-free “halal” business it deems fit.

4. Mudaraba Term Deposit Account holder will share the profit of investment with Social Investment Bank Limited, at the rate declared by the bank from time to time. Any loss which cannot be covered by the Investment Loss Offsetting Reserve will be adjusted from Mudaraba fund and in that case the bank shall not take any remuneration for the service rendered in managing the fund.

5. The profit earned on Mudaraba Term Deposit Account will be credited as determined by the bank at its sole discretion on the basis of its net working results at the end of the year, within a reasonable time from the date of the close of the books of accounts of the bank. The bank’s decision in this respect will be final & binding on the Mudaraba Term Depositors. If the Mudaraba Term Deposit Account is closed before declaration of profit of current year, the depositor shall accept profit at the rate declared in the preceding year, In that case, both the bank & the depositor will relinquish their claim on difference amount of profit which may accrue at the close of the year.

6. The account holder is not allowed to withdraw the amount before maturity date. But obtaining the bank’s prior consent the depositor (s) may withdraw the deposit before maturity without any profit i.e. no profit no loss basis.

7. MTD account holder may withdraw the profit amount annually if he so desires on condition the final adjustment. If needed, will be made at the end of the year. MTD account holder will give an undertaking to that effect.

8. If the profit amount is not withdrawn it will automatically be added to the principal amount annually and the entire amount will earn profit or loss.

9. MTDR is not transferable instrument & as such it cannot be endorsed in favour of others.

10. The Mudaraba Term Deposit Receipt (MTDR) should be preserved properly. In case of loss, the Account holder should notify the issuing branch immediately by quickest possible means so that the bank can take care of.

11. Matured deposit if not encashed within one month of maturity, the deposit shall automatically be renewed for the period it kept before.

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12. Any change in the address of the depositor should be immediately communicated to the bank. No responsibility can be accepted by the bank for delay, non-delivery etc. of letters, remittances etc. sent through Post Office and other agents.

13. The bank retains the right of refusing to accept any deposit from any person in MTD account without assigning any reason.

14. The bank reserves the right to add or alter any or all the rules governing MTD and such altered or additional rules shall be immediately thereafter be deemed to be binding on all depositors.

15. A declaration to the effect that the account holder has gone through operation rules of the account and bound to obey and in token of his acceptance he should put his specimen signature in the account opening form.

CHAPTER-XIV

RULES OF CASH WAQF ACCOUNT

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1. Cash waqfs shall be accepted as endowment in conformity with the Shariah. Bank will manage the waqf on behalf of the Waqif.

2. Waqfs are done in perpetuity and the account shall be opened in the title given by the Waqif.

3. Waqif will have the liberty to choose the purpose(s) to be served either from the list of 32 purposes mentioned below identified by SIBL as given below or any other purpose(s) permitted by shariah.

4. The amount deposited in the Cash Waqf A/Cs will be invested as per Bank’s own decision in conformity with the shariah and the Cash waqf amount will earn profit at the higest rate offered by the Bank from time to time.

5. The waqf amount will remain intact and only the profit amount will be spent for the purpose(s) specified by the Waqif. Unspent profit amount will automatically be added to waqf amount and can earn profit to be grown over the time. No check book will be issued in this account.

6. Waqif may also instruct the Bank to spend the entire amount for the purpose specified by him/her.

7. Waqif has the opportunity to create cash waqf at a time. Otherwise he/she may declare the amount he/she intends to build up and may start with a minimum deposit of Tk. 1000/= (one thousand) only ( or equivalent foreign currency). The subsequent deposits shall also be made in thousand or in multiple of thousand.

8. Waqif shall also have the right to give standing instruction to the bank for regular realization of cash waqf at a rate specified by him/her from any other a/c maintained with SIBL.

9. Cash waqf shall be accepted in specified endowment Receipt Voucher and a certificate for the entire amount shall be issued as and when the declared amount is built.

10. Account of Cash Waqf are maintained in a separate ledger and necessary bank charges are deducted therefrom.

11. In case of any change of address of the Waqif must inform the Bank immediately.

12. Bank reserves the right to regret to open any Cash Waqf Account or to close an account opened earlier without showing any cause.

13. The rules of Cash Waqf Account are subject to amendment in conformity with the shariah at any time by the Bank.

14. Declaration by the Waqif :

A declaration to the effect that the account holder has gone through operation rules of the account and bound to obey and intoken of his acceptance he should put his specimen signature in the account opening form.

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Waqif will put tick mark ( ) and sign against one or more purposes selected from the following list.

Family Rehabilitation :

1. Imporving the conditions of absolutely poor living below the poverty line.

2. Rehabilitation of physically handicapped and disadvantaged.

3. Rehabilitation of beggers.

4. Rehabilitation of destitute women.

5. Upliftmen of urban slum dwellers.

Education & Culture :

6. Education of orphans i.e. supplying books free of cost.

7. Expansion and development of appropriate education for skill development.

8. Informal education facilities of children at home ( i.e. mother’s educational program, children litrrature).

9. Physical education and sports facilities.

10. Supporting local culture and heritage and art promotion.

11. Conducting Dawah activities.

12. Supporting education of deserving students in the form of scholarship.

13. Supporting vocational education in general.

14. Supporting education of a soecific area.

15. Financing specific Madrashs/School/Colleges of a particular area.

16. Educating deserving descendants.

17. Supporting any projects in the area of education, research, religious and social services in the memory of father, mother and any descendants.

18. Establishing educational chair.

Health & Sanitation :

19. Village health and sanitation.

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20. Supplying pure drinking water (to households, schools, mosques, slums, etc.)

21. Establishing hospitals, clinics, health care programs specially for the poor.

22. Health research grant, Research in particular disease.

Social Utility Service :

23. Settling disputes (e.g. Village litigation).

24. Providing legal aid to deserving women to establish their lawful rights.

25. Assist in arranging dowry-less marriages of poor girls.

26. Maintenance of public roads and tree plantation in the village.

27. Providing assistance to peace loving non-Muslims and solving their problems.

28. Creating social awarness to prohibit gambling and other social vices such as theft and other anti-social activities.

29. Construction, installation and development of public utility services.

30. Maintenance of a specific mosque(s) with an income generating project(s).

31. Maintenance of a specific graveyard with an income generating project(s).

32. Maintenance of a specific Eidgah(s) with an income generating project(s).

In addition, Waqif may mention any other welfare or service oriented purpose(s) permitted by the Shariah.

CHAPTER-XV

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Rules Set For MMPDR

1. Deposit for Tk.50,000/-, Tk.1,00,000/-, Tk.1,50,000/-, Tk.2,00,000/-, Tk.2,50,000/-, Tk.3,00,000/- and any multiple amount thereof is acceptable under this scheme.

2. The period of Deposit will be at least 03 (three) years.

3. Monthly profit Taka for 500, 1000, 1500, 2000, 2500, 3000 will be paid respectively against deposit of Tk.50,000/-, Tk.1,00,000/-, Tk.1,50,000/-, Tk.2,00,000/-, Tk.2,50,000/-, Tk. 3,00,000/- or proportionate amount against proportionate deposit at provisional profit. At the end of the accounting year, the provisional profit will be reconciled with the declared rate.

The deposit under this scheme shall get share/profit on the income derived from deployment of fund in investment during any accounting year proportionately for the weightage of 0.05 more than the profit paid at the weightage of deposit for 03 (three) years.

4. The payment of monthly profit shall be due after one month on the corresponding date of next month from the date of deposit. The monthly profit shall be credited in the Mudaraba Savings Account/ AWCD/MND maintained in the Bank of the depositor.

5. The account holder will not be allowed to withdraw any deposit before 03 (three) years or its maturity. In case of pre-maturity encashment profit will be payable as per saving rules and at the rate applicable for Mudaraba Savings Deposit. In such case excess amount of monthly profit will be reconciled.

6. Banks prescribed account opening form F4A will be used to open the account.

7. The depositor shall have to maintain a separate Mudaraba Savings Account/AWCA/MND at the concerned branch where the monthly profit at provisional rate of his deposit shall be transferred.

8. Bank will issue a special type receipt to the depositor for the amount received under the scheme in the same manner as issued in case of MTDR. The receipt is not transferable but acceptable as security for allowing any investment facility.

9. Any change in address will immediately be communicated with the Bank.

10. The Bank reserves the right to change, amend, modify or cancel any rules and terms and conditions and the client shall have to abide by the same.

CHAPTER-XVI

Rules set for Hajj/Umrah Savings Deposit:

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1. This account is known as Mudaraba Hajj/Umrah Savings Account.

2. Any Muslim of Bangladesh is allowed to open an account under this scheme. Bank’s prescribed Account Opening Form F9-4B is used for this purpose. Two Passport size photographs are required duly attested by the introducer alongwith specimen signature card.

3. This account is conducted on the basis of Mudaraba Principle. Here Bank is treated as Mudarib and account holder as Shaheb-e-Mal. The account holder has consented to receive profit/share of the account on profit and loss basis.

4. A pass book is issued to account holder. The entry for monthly installment deposit will be entered in the pass book at the time of deposit. A charge of Tk.20/- have to pay in case of issuance of duplicate pass book for loss of the original pass book.

5. Any change in the address of the depositor should immediately be communicated with the bank.

6. An amount of Tk.1,02,100/- is fixed as expenditure for the year 2002. An adjustment charge at Tk.5% will be fixed on the expenditure of Hajj/Umrah for each year.

7. The account holder has to deposit installment for that year as shown in the table. An adjustment charge at Tk.5% will be fixed on the expenditure of Hajj/Umrah for each year.

8. For performing Hajj within 01 (one) year to 10 (ten) years period if desired by the depositor may deposit the installment as fixed in the table.

9. Profit under the scheme is calculated on the basis of daily product at the weightage of 1.06.

10. The deposit received under this scheme may also be used for badal Hajj. The size of installment and period are shown in the table.

11. On June and December closing profit will be charged at provisional rate but adjusted at declared rate for the previous year. In case of failure of the account holder to perform Hajj/Umrah or nobody performs badal Hajj for him, profit in such account will be charged at the rate applicable for Mudaraba Savings Deposit Account.

12. The account will be opened duly introduced by an account holder acceptable to the Bank.

13. Account holder may decide the installment for any period that cannot be changed afterwards.

14. Under this scheme account may be opened in the name of minor but the procedure for opening account in the name of a minor will be followed.

15. For encashment before maturity profit will be charged at the rate applicable for Mudaraba Savings Deposit Accounts. Profit is not chargeable in the account if the deposit has not attained 06 (six) months period. The interested person who desires to perform Hajj/Umrah before maturity of the account he will be allowed to withdraw the accumulated amount from account with usual profit at 1.06 weightage subject to deposit of the rest amount of expenditure.

16. The monthly installment of this account has to be deposited by the 10th of month. Any advance installment under this scheme is acceptable at any time by the bank.

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17. In case of failure to deposit monthly installment within schedule time account holder may deposit the same in the next month with the due installment. But failure of deposit for 02 (two) installments will be deposited on the 3rd month installment with the prior permission of the Bank authority.

18. The account will be treated as Mudaraba Savings Deposit if 03 (three) consecutive monthly installments are not deposited by the account holder.

19. Account holder will not be allowed to withdraw any amount from the account. For this reason, Bank will issue no cheque book to the client.

20. After maturity of the account, if the accumulated amount including profit becomes less than the real Hajj expenditure of that year, the account holder has to bear the remaining expenditure. In case of failure 01 (one) year period may be extended additionally to the account holder.

21. The amount found excess in the account on maturity over the amount of expenditure for Hajj will be refunded to the account holder.

22. The officer and staff of Social Investment Bank Limited may open this account.

23. At the time of drawing from bank for performing Hajj account holder have to show satisfactory evidence to the bank in support of his identification.

24. Bank reserves the right to change, amend, modify or cancel any rules, terms & conditions and the client shall have to abide by the same.

CHAPTER-XVII

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Rules set for Mudaraba Pension Savings Scheme(MPSS):

1. Any bonafide citizen of Bangladesh of sound mind aged 18 years and above is eligible to open an account under Mudaraba Special Savings (Pension) Scheme.

The balance of the account will be paid to the account holder or his nominee after his death. If the nominee is minor the account holder will writes the name of the person who will receive money from the bank for the minor otherwise legal heirs of the account holder will receive money from bank as per rules set by law.

2. Bank will distribute the profit at proportionate rate from the income derived from deployment of fund in investment on the basis of the principles of Islamic Shariah.

3. On a regular account profit will be calculated on daily product basis giving weightage for 1.05 and 1.08 for 5 years and 10 years term respectively.

4. The installment fixed for this scheme will have to be deposited by the 15 th of concerned month in cash or the same can be deposited through cheque. If the 15 th is government holiday the installment may be deposited in the preceding working day of the 15th.

5. In case of deposit by cheque the installment will be defaulted for the month if the cheque amount has not been credited by the 15th.

6. If the nominee dies in life time of the depositor or before receiving the balance of the account holder, the nomination will be treated as cancel. The account holder may change the nominee submitting written application to the bank. The nominee after the death of the account holder may withdraw the entire balance of the account at a time if desired. The following papers & documents are required to submit to the bank at the time of receiving the balance of the account by the nominee (s) : (a) Application of the nominee /nominee (s) of the guardian (b) Death Certificate of the deceased account holder (c) Identification Certificate of the nominee/nominee (s) either from 02 (two) valued client of the bank or 02 (two) officers of the bank or chairman/commissioner of local union parishad/municipalities (d) Duly attested passport size photographs of nominee/nominee (s) (e) Indemnity bond by the nominee.

7. Any advance installment may be deposited by mutual understanding. But profit will not be charged for the advanced deposit. Profit will be charged only at the time of calculation of profit.

8. The size of installment or period cannot be changed or renewed.

9. At the written request of the account holder account may be transferred from one branch to another branch of the bank.

10. The account holder is allowed to withdraw the deposit before its maturity on payment of service charge for Tk.25/-.

11. Government tax will be deducted from the account as per government rules.

12. (Closure of account before maturity)

For five years term

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(a) The principal amount will be refunded before completion of 06 (six) months term.

(b) After 06 (six) month but before 5 years profit will be given at the rate applicable for Mudaraba Savings Deposit Account for the period covered along with the principal.

For ten years term

(a) The principal amount will be refunded before completion of 06 (six) months term.

(b) After six month but before 5 year profit will be given at the rate applicable for Mudaraba Savings Deposit Account on declared weightage for the period covered along with the principal.

(c) The amount for 5 years term at declared weightage of profit and the profit for the rest period at the rate applicable for Mudaraba Savings Deposit with declared weightage will be paid including principal amount.

13. (Payment of Pension)

After completion of the term the account holder if desires can withdraw the total deposit along with the profit at a time or in monthly installment basis as per option given by him. If the amount is paid on monthly installment basis the profit on the deposit after completion of the term will be given at the rate applicable for Mudaraba Savings Deposit Account till balance exists.

14. Payment of pension after death of the account holder

(a) Payment of pension amount after the death will be given as per rules. If there is nominee (s) the amount will be disbursed as per share determined by the account holder himself.

(b) If there is no nominee the amount will be disbursed to the heirs of the account holder on production of succession certificate from competent court.

15. Automatic closure and revalidation of the account :

(a) If the account holder fails to deposit 03 (three) consecutive installments before 5 years maturity he cannot continue the account under the scheme and will be given profit at the rate and weightage applicable for Mudaraba Savings Deposit Account. But the account may be revalidated subject to deposit all the arrear installments by the 15th of fourth month with a written application showing valid reason for such default with late fees.

(b) After 5 years if the account holder again failed to deposit 04 (four) consecutive installment bank deserves the right to close the account. In such case the entire balance of the account including profit for the previous period and profit for the rest period at the rate applicable for Mudaraba Savings Deposit will be given. The account may be revalidated subject to deposit all the arrear installments including late fees by the 15th of the month with a written application showing the valid reasons for such default.

(c) The client shall get 5 (five) chances for 5 years terms accounts and 10 (ten) chances for 10 years terms account to revalidate his account.

(d) An amount of Tk.25/- will be realized as late fees for each irregular installment.

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(e) The account shall be treated as automatically closed if monthly installment are not deposited regularly. In case of automatically closed account the depositor shall get profit as per terms laid down hereinabove. The balance of automatically closed accounts shall be paid to the client on serving notice to him after 03 (three) months from such closure through payment order or transfer to him Mudaraba Savings Deposit or Al-Wadia Current Account maintained in the bank. If no response to notice is received within reasonable time the payment order shall be sent to the account holder’s recorded address by registered post and postal expenses plus account closing commission as per prescribed rate shall be recovered from the balance of the account.

A declaration to the effect that the account holder has gone through operation rules of the account and bound to obey and intoken of his acceptance he should put his specimen signature in the Account Opening Form.

CHAPTER-XVIII

Rules set for Mudaraba Monthly Termed Saving Scheme

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1. Period of savings :- 5 years, 8 years, 10 years and 12 years.

2. Size of monthly installment :- 200/= , 300/= , 500/= , 1000/= , 1500/= , 2000/=

3. Deposit under the scheme will be received on Mudaraba Principle. Under the scheme profit will share on daily product basis at the rate of weightege of 1.05 for 03 (three) years term.

4. The total amount payable on maturity including provitional profit for installment of each category is shown in the following table. The profit will be charged in the account on actual calculation at the end of the year. On maturity actual profit may be more or less than the estimated profit shown in the table :

MonthlyDeposit

200/- 300/- 500/- 2000/-

Term Total Deposit

EstimatedProfit

TotalDeposit including Est.Profit

Total Deposit

Estimated Profit

TotalDeposit including Est.Profit

Total Deposit

Estimated Profit

TotalDeposit including Est.Profit

Total Deposit

Estimated Profit

TotalDeposit including Est.Profit

5years 12,000 4,000 16,000 18,000 6,000 24,000 30,000 10,000 40,000 1,20,000 40,000 1,60,0008years 19,200 10,800 30,000 28,800 16,200 45,000 48,000 27,000 75,000 1,92,000 1,08,000 3,00,00010years 24,000 18,000 42,000 36,000 27,000 63,000 63,000 45,000 1,05,000 2,24,000 1,80,000 4,20,00012years 28,800 25,200 54,000 43,200 37,800 81,000 72,000 63,000 1,35,000 2,88,000 2,52,000 5,40,000

5. Bank’s prescribed account opening form will be used to open the account.

6. Account holder may select the size of installment at the time of opening of account which could not be charged subsequently.

7. Under the scheme account may be opened in the name of minor (s).

8. More than 01(one) account for different installments may be opened in a Branch by a same person.

9. On maturity the total amount payable will be made on the date after 01 (one) month from the date of deposit of last deposit.

10. Usually encashment before completion of 5 (five) years term will not be allowed. In case of pre-matured encashment before 5 (five) year the rules set for Mudaraba Savings Deposit Account will be applicable for this scheme and profit will be charged at the rate applicable for Mudaraba Savings Deposit. But no profit shall be charged if encashed before 06 (six) months.

11. In case of encashment within 02 (two) periods for profit will be paid entirely for the period it matured and for the rest period profit will be calculated at the rate applicable for Mudaraba Savings Deposit.

12. Installment may be deposited by the 15th of month. In case of holiday on the 15th installment may be deposited in the next working day.

13. If account holder failed to deposit 03 (three) consecutive installment under this scheme before maturity of 05 (five) years he would not be continue the account. The rules set for Mudaraba Savings Deposit is applicable here and profit will be charged at the rate applicable for Mudaraba Savings Deposit.

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14. After maturity of 05 (five) years and subsequently within 02 (two) certain term if the account holder failed to deposit of 04 (four) consecutive monthly installment, bank deserves the right to close the account. In this case, the balance with the entire profit for the previous matured period will be paid including profit for the rest period charging the rate applicable for Mudaraba Savings Deposit.

15. Account holder may issue standing instruction to the Bank for crediting monthly installment from his account maintained in the Bank.

16. Transaction will be stopped in the account after the death of the account holder. The nominee appointed by the account holder will receive the balance of the account. Unless there is any nominee the balance of the account is payable to legal heirs on production of succession certificate from competent court.

17. Taxes will be deducted from the account as per government rules.

18. The account holder will immediately inform the Bank his address and telephone number if changed.

19. Bank deserve the right to change, amend, modify or cancel any rules, terms & conditions and the client shall have to abide by the same.

CHAPTER-XIX

Mudaraba Education Savings Scheme1

1. This scheme is adopted by the Bank on the basis of profit and loss from the business of the Bank under the principles of Islamic Shariah.

2. Bank receives deposit on the basis of Mudaraba Principle. Profit is calculated at the rate of 1.12 weightage of the deposit for 03 (three) years.

3. All the Branches of Social Investment Bank Limited will operate the scheme.

4. An amount of Tk.25,000/- or any amount multiple thereof is acceptable under the scheme.

5. Bank receives deposit under the scheme for the period of 07 years, 10 years, 15 years and 20 years respectively.

6. On maturity the balance of the account is payable at a time or after maturity Monthly Education Allowance will be paid for 06 (six) years as per allowance shown in the table hereunder:

Term Initial Deposit Payable on maturity Monthly Education Allowance7 years 25,000 55,000 1,000

10 years 25,000 77,000 1,50015 years 25,000 1,36,000 2,50020 years 25,000 2,40,000 4,500

On maturity the amount payable shown in the table is estimated where monthly education allowance is provisional.

7. The amount of profit payable at a time at different frequencies of maturities may be increased or decreased for the reason of application of profit at different rates to the deposit at the end of the year. That is, the amount shown on maturity on different frequencies in the above table may be more or less at the time of payment. If the calculated & declared amount of profit is more than the profit shown in the table the excess amount of profit will be paid to the depositor. On the contrary, as per calculation the declared amount of profit at the end of the year is less than the amount of profit shown in the table whatsoever will be paid to the depositor.

8. If the account holder desires to receive Monthly Educational Allowance for a period of 06 (six) years instead of payment at a time on a maturity the monthly allowance may be more or less from the figure shown in the table due to application of declared profits for various frequencies..

9. At the time of receiving education allowance the account holder will submit the receipt or instrument to the Bank duly discharged in favour of the Bank and give written instruction to the Bank for payment of Monthly Educational Allowance to the nominee.

10. Bank will issue a receipt for the deposit received from the account holder.

11. The instrument will not be allowed to encash before its maturity. In case of pre-maturity encashment the following conditions are applicable:

(a) If the instrument is encashed before 07 (seven) years profit will be charged at the rate applicable for Mudaraba Savings Deposit Account.

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(b) If the instrument is encashed after 07 (seven) years the entire balance for the period and the profit for the rest period will be paid to the depositor at the rate applicable for Mudaraba Savings Deposit Account.

12. The instrument is acceptable to the Bank as security for allowing investment facility.

13. (a) The nominee of the account will receive the amount payable to the account after the death of the depositor. If there is no nominee the amount will be paid to the heirs of the deceased on production of succession certificate from the competent authority.(c) If the nominee after the death of the account holder desires to receive education allowance for 06

(six) years under the prevailing rules of the scheme he will submit the receipt to the Bank on maturity duly discharged in favour of the Bank with proper verification of identification for the legal guardian of the nominee.

14. For loss of the instrument the rules set for issuing duplicate of Mudaraba Term Deposit Receipt will be applicable for issuing duplicate instrument in this scheme.

15. Excise duty and other taxes will be deducted from the account as per government rules.

16. Bank reserves the right to amend, revise, change, alteration, addition, deletion, modification, terms and conditions relating to the rules under the scheme and client shall have to abide by the same.

CHAPTER-XX

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Rules set for Bashtan Saving Scheme:

1. A Bangladeshi National aged 18 years & above with sound mind must apply in the prescribed format of the Bank to open the account.

2. Monthly installment for Tk.500/-, Tk.1000/-, Tk.1,500/-, 2000/- and multiple thereof may be acceptable under this scheme.

3. The account will be treated close if 03 (three) consecutive installments are not deposited.

4. Profit will charged on the deposited balance at the rate calculated for declaration at the end of accounting year. No profit will be charged if the account is closed or encashed within 06 (six) months from the starting date.

5. Transaction in the account will be stopped to the death of the account holder. The nominee appointed by the account holder will receive the balance of the account. Unless there is any nominee the balance of the account is payable to legal heirs of the account holder on production of Succession Certificate from competent court.

6. The period of scheme is 15 years. In case of pre-mature encashment the profit will be charged at the rate applicable for Mudaraba Savings Deposit Account.

7. Excise duty and other taxes will be deducted from the account as per government rules.

8. Any change in the address and telephone number of the account holder will immediately communicate with the Bank.

9. Account holder is eligible to get investment facility from the bank at 80% of available balance stands to the account subject to completion of 5 (five) years.

10. On maturity, bank may consider the application of investment facility for house building from the bank if policy framed for the same by the Bank.

11. Bank reserves the right to change, amend, modify or cancel any rules, terms & conditions and the client shall have to abide by the same.

CHAPTER-XXI

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Rules Set for Mudaraba Millioniare Scheme

1. This is a deposit scheme based on Islamic Shariah Principle under Mudaraba mode where monthly installment is Tk.550/-, Tk.1050/- and Tk.2050/- respectively.

2. Under the scheme the period for deposit of monthly installment is 15 (fifteen) years, 20 (twenty) years and 25 (twenty five) years respectively. On maturity of the term depositor will receive estimatrd amount as shown in the following table:

Period Monthly Installment Tk.550

Monthly Installment Tk.1050

Monthly Installment Tk.2050

15 years 10,00,00020 years 10,00,00025 years 10,00,000

3. The depositor shall receive profit at provisional rate as calculated on the basis of weightage at 1.12 on daily product of the balance for deposit of 03 (three) years term. At the end of the accounting year, the declaration of final profit will be credited in the account. On maturity the actual amount payable in the account may be more or less than the estimated amount shown inthe table here-in-above.

4. The size of the installment is not changeable after opening the account.

5. The procedure for deposit of installment:-

(a) Monthly installment will be deposited by the 15 (fifteen) of each month. Otherwise the account will be defaulted.

(b) If the 15th day is holiday the installment will be deposited on the next working day.

(c) Cheque is acceptable for deposit of monthly installment. The date of collection of the cheque will be treated as the date of deposit.

(d) Monthly installment may be deposited from the account of depositor maintained in the bank as per standing instruction.

6. Any eligible person may open more than one account under the scheme.

7. In case of pre-mature encashment profit will be calculated at the rate and weightage applicable for Mudaraba Savings Deposit Accounts under the provision of Mudaraba Savings rules. But no profit will be calculated and chargeable before completion of 06 (six) months period.

8. Investment facility may be allowed to the account holder against lien of the balance of the account at 80% of available balance. The depositor will pay profit against the investment at the rate fixed by the Bank from time to time.

9. The account will be treated as automatically close if the account holder fails to deposit 04 (four) consecutive installments before its maturity. But profit will be paid for closing the account at the rate applicable for Mudaraba Savings Deposit Account. No profit will be charged for the deposit kept for less than 06 (six) months period.

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10. The deposit received by the Bank under the scheme will be deployed in investment with other deposit of the bank on the basis of Shariah Principle of investment.

11. The account holder will immediately inform the Bank his address and telephone number if changed. Bank usually communicate letters etc. through Post Office. In case of missing any letter Bank will be held liable.

12. (a) After the death of account holder the legal guardian of the minor account holder or the minor can continue the account upto maturity. In such a case a new agreement will be completed with the Bank.

(b) The nominee (s) will be paid the balance amount of the account including accrued profit in the account after the death of the account holder. In such case proper evidence for identification of the nominee (s) will be produced to the Bank.

(c) In case of maturity of deposit before attainment of adult by a minor the legal guardian of the minor will receive the estimated balance from the Bank. But in this case proper evidence for guardianship will be produced to the Bank.

13. Government excise duty or taxes will be deducted from the account as per government rules.

14. Bank reserves the right to change, amend, modify or cancel any rules, terms & condition and the client shall have to abide by the same.

CHAPTER-XXII

1

Rules set for Mudaraba Lakhopoti Deposit Scheme

1. Under the scheme the monthly size of installments are Tk.470/-, Tk.1280/-, Tk.2380/- and Tk.3830/- respectively.

2. The period of Account under the scheme is 2 years, 3 years, 5years and 10 years respectively.

3. On the basis of Mudaraba Principle under Islamic Shariah deposits are received in this scheme. Profit distributed among the Mudaraba depositors at the rate 75% of the income derived from deployment of fund in investment.

4. The amount payable at maturity on the basis of monthly installments and terms of the scheme are shown in the table mentioned hereinunder:

Monthly Total Deposit Term Payable on Maturity470/- 10 year 1,00,000/-1,280/- 5 year 1,00,000/-2,380/- 3 year 1,00,000/-3,830/- 2 year 1,00,000/-

* The amount payable on maturity of terms will be more or less from the amount shown in the table because of application of profit at various rate according to calculation of total profit & loss and the weightage of the term at different frequencies.

5. Bank reserves the right to deduct tax from the account as per government rules.

6. Under this scheme any bonafide Bangladeshi citizen may open an account for any installment and term but after opening of account monthly installment and term cannot be changed.

7. Under this scheme an account may be opened in the name of minor (s).

8. Under this scheme more than 01 (one) account may be opened for any term.

9. The amount payable on maturity will be the corresponding date of next month from the date of deposit of the last installment received by the Bank.

10. Monthly installment must be deposited by the 15th of month but in case of holiday on the 15th next working day may be acceptable for deposit. Under this scheme account may open in any working day of a month. Any advance installment may be deposited by mutual consultation with the Bank.

11. Under the scheme the depositor will not be allowed to withdraw the amount before maturity date. But in case of pre-maturity encashment the depositor is allowed to withdraw the amount subject to: (a) No profit is applicable if the period is less than 01 (one) year (b) But the profit is applicable for the period over than 01 (one) year at the rate applicable for Mudaraba Savings Deposit.

12. In case the account holder failed to deposit monthly installment within the schedule time he can deposit the installment in the next month with an additional Tk.10/- for the installment.

13. The account holder if failed to deposit 03 (three) consecutive installment he can revalidate the account by paying 5% compensation for the installment dues in the next month. The Mudaraba Lakhopoti Deposit Scheme will be treated as Mudaraba Savings Deposit Account if the account holder failed to

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deposit more than 03 (three) consecutive installments. It is mentionable that the account will be closed without applying any profit in the account if period of deposit is less than 01 (one) year. In case of period more than 01 (one) year profit will be charged at the rate applicable for Mudaraba Savings Deposit Account. In such case the government taxes and other paybles will be deducted as per government rules.

14. Under this scheme the account holder is allowed investment facility at 80% of his total deposit subject to fulfillment of 02 (two) years period of the account with having minimum balance Tk. 30,000/- only.

15. In case of death of the account holder the transaction of the account will be stopped. The balance of the account will be paid to the nominee of the account holder or his/her heirs on production of succession certificate from the competent court.

16. With the permission of the bank authority an account under this scheme may be transferred from one branch to another branch of the bank.

17. Under this scheme account holder may open an Al-Wadia Account or Mudaraba Savings Account so that monthly installment can be transferred automatically as per standing instruction of the client by realising Tk.5/- per installment as service charge.

18. Under this scheme monthly statement of account may not be issued but in special case monthly statement of account may be issued on realization of Tk 10/- as service charge.

CHAPTER-XXIII

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Rules set for Mudaraba Double Benefit Scheme

1. Bank receives deposit for Tk.10,000/- and above in this scheme on the basis of Mudaraba Principle under Islamic Shariah and issues a not-transferable receipt as a token of deposit.

2. Bank receives deposit on the basis of Mudaraba Principle under Islamic Shariah. The depositor will share profit at least 75% of the income derived from deployment of Mudaraba fund in investment.

3. The period of the deposit under this scheme is 06 (six) years. Under this scheme the deposit will be benefited double or more or less within the period of 06 (six) years because of applications of profit against total profit & loss and the period at the weightege proportionately.

4. The depositor will not be allowed to encash the balance of the account before its maturity. In case pre-maturity encashment profit will be paid at the rate applicable for Mudaraba Saving Deposit Accounts but no profit will be charged within 01 (one) year from the date of starting of the account.

5. Investment facility may be allowed to the depositor at 80% of the value of the receipt against pledge of the receipt as security. For this facility of investment profit will be paid to Bank as at the rate applicable for investment.

6. Under this scheme deposit account may be opened in the name of minor (s).

7. While closing the account before declaration of profit for an accounting year, the account holder will have to receive profit at the provisional rate of the bank or at the rate declared for the last year.

8. The amount of deposit received under the scheme by the bank will be deployed in investment with other deposits available in the fund of the Bank as per Shariah Principle.

9. The depositor will immediately communicate with the bank the address or telephone number if any changed. Bank usually communicate with its client through Post Office. Bank will not be held liable for missing any letter or late delivery by the Postal Department.

10. The account holder will preserve Mudaraba Double Benefit Deposit Scheme Receipt. He will immediately inform the loss of the receipt to the Bank for taking necessary precautionary measures as per rules. Notwithstanding serving written information the Bank will not be held liable for fraudulent payment of the lost instrument if any.

11. Bank will issue a duplicate receipt in favour of the depositor after obtaining proper indemnity bond from the account holder..

12.(a) The nominee appointed by the account holder will receive the balance of the account after death of account holder. In case of more than one nominee appointed by the account holder the balance will be distributed proportionately as fixed by the account holder. At the time of claimant of balance of the account the nominee/nominees will produce his/ their proper evidences of identification for nomination to the Bank.

(b) If there is no nominee the balance of the account is payable to legal heirs of the deceased on production of succession certificate from competent court.

13. Without serving any prior notice to the account holder excise duty or taxes wiil be deducted from the account as per government rules.

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14. Bank deserve the right to amend, revise, change, alteration, modification and cancel terms and conditions relating to the rules under the scheme and client shall have to abide by the same.

CHAPTER-XXIV

Rules set for Mudaraba Marriage Savings Account

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1. Any Bangladeshi unmarried youth with sound mind aged 18 years and above in his name or any father/mother/guardian for their unmarried son or daughter may open a Mudaraba Marriage Savings Account in Social Investment Bank for the period 2/3/5/10 years term for installment of Tk.200/-, Tk.300/-, Tk.500/-, Tk.1,000/-, Tk.1,500/-, Tk.2,000/-, Tk. 3,000/-, Tk.5,000/- and Tk.10,000/-. Bank prescribed account opening form F64 will be used to open the account with a SS card and two passport size photographs duly attested by the introducer.

2. Profit will be charged in the account if the account runs regularly, at the weightage of 0.93 for the period of 2/3/5/10 years on the basis of daily balance. Deposits are receivable on the basis of Mudaraba Principles under Islamic Shariah that will be invested on the same principles. At least 75% share of total profit derived from the deployment of fund in investment under Mudaraba Principle will be distributed to the depositors.

3. The monthly installment shall have to be deposited by the 1st to 15th of each month by cash or through cheque. If the 15th of any month is a government holiday then the installment may be deposited on preceding working day.

4. Any advanced installment may be deposited in the account.

5. The size of installment and the period of account are not changeable or renewable.

6. Under this scheme any eligible person or guardian may open more than one account in any branch of the bank.

7. On maturity the balance of the account will be paid on the date after one month from the date of deposit of last installment. Under this scheme transaction will be stopped to the death of the account holder and the balance thereto is payable to the nominee of the account holder or in absence of nominee the heir(s) of the account holder as per rule.

8. Under this scheme account holder/Guardian may open an Al-Wadia Account or Mudaraba Savings Account so that as per his standing instruction monthly installment is transferred automatically with recovering Tk. 10/-per installment as service charge.

9. Monthly Statement of account may be issued to the account holder on payment of Tk.10/- as service charge.

10. The account under the scheme is transferable from one branch to another branch of the bank at written request of the client showing valid reason.

11. In case of failure to deposit monthly installment or any other reasons the account may be closed before its maturity by paying Tk.25/- as service charge.

12. In case of death of account holder before maturity drawing from the account will be allowed to nominee or heirs as per provision of section No. 18 and in the absence of nominee the terms & conditions of section No.7 is applicable.

13. Government tax and other duties will be deducted from the account as per rules.

14. Profit will be charged at provisional rate if the account is matured before calculation of declared profit. Subsequently, there will be no claim of bank or client if the profit is more or less from the declared profit at the end of the year.

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15. The balance of the account under this scheme must be used for activities relating to marriage.

16. (Closure of account before maturity)

For 2/3/5 years term:

(a) The principal amount will be refunded before completion of one year.

(b) After 06 (six) months but before maturity of five years profit will be paid to wife of account holder at the rate applicable for Mudaraba Savings Deposit Account for the period covered along with the principal.

For ten years & above terms:

(a) The principal amount will be refunded before completion of one year.

(b) After one year but before maturity of five years profit will be given at the rate applicable for Mudaraba Savings Deposit Account on declared weightage for the period covered along with the principal.

(c) The amount for five years term at declared weightage of profit and the profit for the rest period at the rate applicable for Mudaraba Savings Deposit with declared weightage will be given including principal amount.

17. Automatic closure and revalidation of the account

The account shall be treated automatically close if monthly installments are not deposited by the 15 th of month. However

(a) Where monthly installment fall in arrear within one year of the opening of the account the depositor deposit the same by the 15th of the following month with a written application showing valid reasons for such default, the account may be revalidated for operation.

(b) If after one year of opening of account 03 (three) consecutive installments are not deposited the account may be revalidated subject to deposit of all arrear installment by the 15th of the fourth month with a written application showing the valid reason for such default.

(c) The client get one chance for five years account and four chances for ten tears account to revalidate his account.

(d) In case of automatically close account the depositor will get profit applicable as per terms prescribed in section No. 14 & 15.

18. The balance of the account is payable to nominee/heirs after the death of wife of account holder on obtaining the following papers & documents:

(a) Death Certificate of account holder.

(b) Identification Certificate of the nominee/heirs either from two valued clients of the bank or Two Officers of the bank or Chairman or Commissioner of local Union Parishad/Municipalities.

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(c) Duly attested passport size photographs of the nominee (s)/heir (s).

(d) Indemnity bond by nominee (s)/heir (s) in favour of bank.

19. A declaration to the effect that the account holder has gone through operation rules of the account and bound to obey and in token of his acceptance he should put his specimen signature in the account opening form.

CHAPTER-XXV

Rules set for Mudaraba Muhor Savings Account

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1. Any Bangladeshi bonafide married citizen with sound mind may open the account in his wife’s name for payment partialy or fully the unpaid Muhor. An unmarried person may also open this account for payment of Muhor in future to his wife. The scheme adopted by Social Investment Bank Limited is applicable for this purpose. The amount deposited in this account will be paid to the wife of the account holder or the nominee/nominee (s) of wife after her death. Bank’s prescribed account opening form F63 will be used to open the account with an SS card and two passport size photographs dully attested by the introducer.

The size of installment :- The depositor shall be allowed to fix the monthly installment of deposit at the rate of his choice for the options as mentioned here-in-under.

Tk.500/-, Tk.1,000/-, Tk.2,000/-, Tk.3,000/-, Tk.4,000/- and Tk.5,000/- respectively.

2. If the account runs regularly the profit for the period of 5 (five) years term at the weightage of 0.93 and for 10 (ten) years term at the weightage of 0.95 will be paid at the end of the financial year on the basis of daily balance product. Deposits are received on the basis of Mudaraba Principles under Islamic Shariah that will be invested on the same principles. At least 75% share of total profit derived from the deployment of fund in investment under Mudaraba Principles will be distributed to the depositors. But in case of loss depositor has to bear loss proportionately as per capital deployment.

3. The monthly installment shall have to be deposited by the 1st to 15th of each month by cash or through cheque. If the 15th of any month is a government holiday then the installment may be deposited on the preceding working day.

4. If cheque amount for installment is not credited in the account within the 15th the account holder will be treated as defaulted for that installment.

5. If the nominee dies during the lifetime of the wife or before receiving the amount of the account the nomination will be treated as cancel.

6. Any advance installments may be deposited by mutual understanding with the Bank.

7. The size of installment and the period of account are not changeable or renewable.

8. At the written request of husband and with the due consent of wife an account under this scheme may be transferred from one branch to another branch of the bank.

9. In case of failure to deposit monthly installment or any other reason the account may be closed before its maturity by paying Tk. 25/- as service charge.

10. Drawing from the account before maturity or after maturity will be allowed to wife by her signature unitarily.

11. In case of death of wife before maturity drawing of the account will be allowed to nominee or heirs as per provision of section No. 17 where there is no nominee the terms & conditions applicable as per provision of section No. 13.

12. Government tax and other duties will be deducted from the account as per rules.

13. In case there is no nominee the balance of the account will be paid to the heir(s) of wife on submission of succession certificate from competent court.

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14. Profit will be charged at provisional rate if the account is matured before calculation of declared profit. Subsequently, there will be no claims of bank or client if the profit is more or less from the declared profit at the end of an accounting year.

15. (Closure of account before maturity)

For five years term

(c) The principal amount will be refunded before completion of one year.

(d) After one year but before maturity of five years profit will be paid to wife of account holder at the rate applicable for Mudaraba Savings Deposit Account for the period covered along with the principal.

For ten years term

(d) The principal amount will be refunded before completion of one year.

(e) After one year but before maturity of five years profit will be given at the rate applicable for Mudaraba Savings Deposit Account on declared weightage for the period covered along with the principal.

(f) The amount for five years term at declared weightage of profit and the profit for the rest period at the rate applicable for Mudaraba Savings Deposit with declared weightage will be given including principal amount.

16. Automatic closure and revalidation of the account

The account shall be treated automatically close if monthly installments are not deposited by the 15 th of month. However

(e) Where monthly installment fall in arrear within one year of the opening of the account the depositor deposit the same by the 15th of the following month with a written application showing valid reasons for such default, the account may be revalidated for operation.

(f) If after one year of opening of account 03 (three) consecutive installment are not deposited the account may be revalidated subject to deposit of all arrear installment by the 15th of the fourth month with a written application showing the valid reason for such default.

(g) The client get one chance for five years account and four chances for ten tears account to revalidate his account.

(h) In case of automatically closed account the depositor will get profit applicable as per terms prescribed in section No. 14 & 15.

17. The balance of the account is payable to nominee/heirs after the death of wife of account holder on obtaining the following papers & documents:

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(e) Death Certificate of wife.

(f) Identification Certificate of the nominee/heirs either from two valued clients of the bank or Two Officers of the bank or Chairman or Commissioner of local Union Parishad/Municipalities.

(g) Duly attested passport size photographs of the nominee (s)/heir (s).

(h) Indemnity bond by nominee (s)/heir (s) in favour of bank.

18. A declaration to the effect that the account holder has gone through operation rules of the account and bound to obey and in token of his acceptance he should put his specimen signature in the account opening form.

CHAPTER-XXVI

Cash Management, Maintenance ofKeys and Security measures

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1. Cash is a very important and sensitive item for day to day transaction of the Branches. Internal check, supervision and monitoring at different stages of cash handling is extremely necessary to avoid the incidents of thefts, fraud, forgeries, embezzlement and shortfall of cash. Adherence to the set rules & procedure is essential. Proper maintenance and handling of cash plays a vital role in smooth functioning of the Bank.

2. The Cash in-Charge, 2nd Officer and the Manager as Joint custodian must be present when the strong room is closed and opened. None should enter into it except in the presence of the key holders. The strong room must be under the double lock. Cash and documents kept in joint custody in the strong room should be handled only in the presence of all the joint custodians.

3. The following general instructions must, however, invariably be followed at all branches.

3.1 No unauthorized person be allowed to enter into the cash counter which should be under lock and key from inside, stitching / sorting of cash must be done under proper supervision.

3.2 The Cash-in-Charge/Paying cashier must maintain the specimen signature of authorized passing officials and similarly receiving/paying cashier signature must be with cash receiving officer/passing officer. The dealing of cash by the corrupt employees and officials should be guarded against pocket / parallel banking.

3.3 Notes of each denomination must be sorted and arranged in the prescribed manner in packets of 100 pieces each. Packets of less than 100 pieces of each denomination should be treated as loose cash and not to be mixed up with full packets. Each packet should be secured by a rubber band and stitching or as per instruction given from Bangladesh Bank from time to time.

3.4 The full packets of 100 pieces each should be tightly tied with thread at the left hand edge of the packet. Upper side of the packet should be covered by pasting a denomination slip available at branches. However, the full packets of the Tk. 100/- and Tk. 500/- taka notes shall have to be stitched as per practice of the Bangladesh Bank. 10(ten) packets of each kind of notes shall form bundle for arranging cash in tills.

3.5 The round rubber stamp of the branch should be distinctly affixed on both sides of the packets covering the thread portion under the initial of concerned receiving /counting cashier(s).

3.6 The staff counting and examining the notes will legibly put their signatures on the label as well as at the backside of the packets.

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Introduction:

Custody ofCash

General InstructionforCash Handling:

3.7 The Head Cashier or the Cash-In-Charge should countersign the labels on all full packets and to see that the packets contain legible signatures as prescribed above of the cashiers who have counted and examined the notes. Normally all full packets of same denomination should be equal in size so that while putting counter signature the Head Cashier or the Cash-In-Charge may be able to detect shortage or excess in any packet. The size of the packets may reveal such discrepancies.

3.8 At the time of closing the cash balance of all loose packets should be counted 100%. The full packets should be checked by random counting of few packets of different denominations.

3.9 The packets so made, counted and checked will then be tightly tied up in bundles of packets each before safe keeping in Vault.

3.10 Under no circumstances Defective/Mutilated/Burnt/Torn etc. notes should be mixed up in the packets of good notes. As a matter of rule those types of notes should not be accepted over the counter either as deposits or in exchange of good notes. Violation of this rule will invite disciplinary action against the person liable. At the request of valued clients these type of notes may be accepted only on collection basis, Such notes, if any, should be sent immediately for collection to the nearest office of Bangladesh Bank directly for payment of value in terms of Bangladesh Bank’s / Head Office instructions.

3.11 Soiled notes, if any, should be kept separate from those notes fit for re-issue. Such notes should be deposited to Bangladesh Bank and or Sonali Bank as per practice in vogue.

3.12 All notes must be protected against damp, insects etc. and should be kept in the chest / under lock and key.

4. The cash balance shall ordinarily consist of nothing but notes and coins and

the 2nd officer will see that the whole of it is licked up in the strong room. In the event of any cash payment being made after the Cash Balance Book have been closed in any emergency or in any unavoidable circumstances, after closing of Cash Balance, the relative voucher must be passed by the Manager and entered in the Paying Cashier’s Book (B-7) under the following day’s date. A note to this effect is made in the Cash Balance Book under authentication of the Cash-In-Charge and the 2nd officer. Amounts received, if any after closing the Cash Balance Book (B-45) must also be similarly entered in the Receiving Cashiers Book (B-7) and noted in the Cash Balance Book. ANY DEVIATION FROM THIS RULE WILL BE REGARDED AS SERIOUS OFFENCE.

5. Before taking notes and coin into the joint custody the 2nd officer will check their correctness in the following manner:

5.1 He will personally count all notes of denominations and will verify as large a portion as practicable.

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Evening Banking:LatePaymentAnd LateReceipt

Cash CheckingProcedure:

5.2 The 2nd officer will satisfy himself in each evening that the joint custody balance corresponds exactly with the entries in the cash position slip as well as Cash Balance Book. The Manager satisfies himself about the Cash Balance of the Branch on each day either by counting the whole amount or on test basis. However, the Manager will check at least once a month the WHOLE of the Cash Balance and the fact is to be noted in the Cash Balance Book under his full signature with date.

7. Any shortage in the cash balance, occurs under any circumstances should be recovered from the concerned Cashier/Cash-In-Charge on the same day, if possible. Failing recovery on the same day, the amount must be debited to “Protested Bills Account”, under telegraphic/Telex advice to Head Office/Zonal Office followed by a letter in detail describing the shortfall fixing responsibility of the offender with specific recommendations of the Branch-incumbent. The amount must be recovered as soon as possible and the entry in “Protested Bills Account” adjusted under advice to Head Office.

8. While taking day’s cash position, any excess if found in cash balance it must be credited to “Sundry Deposit Account” under advice to Head Office naming the cashier at fault. Any claim made for the amount should be paid by means of a Payment Order/ transfer voucher if the Manager is fully satisfied himself that the demand is in order. On 31st December in each year, items which have been lying unclaimed for one year or more will be referred to Head Office for instructions as to their disposal.

9. Care should be made that no forged/miss-matched currency note(s)is/are received at the counter. Whenever a forged note is detected at the counter, the depositor should be handed over to the police.

Ordinarily no defective (mutilated, burnt, torn, defaced, soiled etc. unfit for exchange) notes tendered at branches should be accepted. In the event of any such notes being detected the amount will be immediately recovered from the Cash- In-Charge / dealing cashier. However, on account of deposit of such notes by the valued clients should be received on collection basis like OBC i.e. collected from Bangladesh Bank through feeding branch. The account of the depositor will be credited after realization of the proceeds and recovery of Bank’s charges.

10. Insurance of Cash-in-safe, Cash-over-counter and Cash-in-transit in respect of all branches is arranged by the GSD, Head Office. Particulars of remittances received and dispatched, will be recorded by the branches in the Cash-in-transit Register and monthly statements thereof be submitted to the GSD, Head Office by the 7th of the following month. The amount of premium payable to the insurance Company will be paid by Head Office by debiting the branches concerned through IBDA. The branches will in turn respond the entry (IBDA) by debiting their Expenditure Account under sub-head “Insurance” on receipt of the relative advice from Head Office. Insurance limit relating to Cash-in-safe, Cash-on-counter and Cash-in-transit should be meticulously observed including maintenance of the Cash within the respective approved Limit / ceiling.

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CashShortage:

ExcessCash:

Forged CurrencyNotes:

Insuranceof Cash:

Change of Officials:

11. Whenever the 2nd officer / joint custodian of cash is changed or a Branch Manager is relived, the official taking over, will verify the whole of the cash balance of the branch & will submit the Cash Verification Report to HRD, Head Office.

11.1 Whenever the Cash-in-charge is changed, the outgoing and incoming officers will sign the Cash Balance Book (B-19) on the date of relieve.

11.2 Whenever cash balances are verified by an Executive / Auditor, Verifying Officer, Manager/2nd officer, must remain present during the period of verification.

12. When the cash in hand exceeds the limit fixed by the Head Office, cash excess over limit shall have to be remitted to the nearest feeding branch Local Office / Bangladesh Bank at the earliest.

12.1 On receipt of information, the Feeding Branch should arrange collection of cash. Feeding Branch will be debited by Remitting Branch through SIB General A/c. and IBDA with Cash Remittance Invoice be sent with the cash escort party which will be responded on receipt of cash by the Feeding Branch. Transport of cash must be within the insurance limit of Cash-in-transit. The cash should be remitted through/carried by an Officer with adequate armed guards and security measures.

13. Cash remittances to and from branches must be accompanied by an officer and necessary armed guards or police escorts. Number of armed guards/police escorts required should be determined by volume of cash involved and means of transport available.

13.1 For all cash remittances sent, branches should maintain a Register (b-46) and the receipt of the accompanying officer/cashier shall be obtained therein for the amount of cash delivered to them. Signatures of the members of the escorts should also be obtained and verified.

13.2 For the amount of cash remitted, the remitting branch will debit the concerned branch and send the relative IBDA with the officer accompanying the remittance. The denominations of notes and coins and the value against each denomination should be mentioned in the overleaf of the IBDA.

13.3 The receiving branch will check the cash as per particulars to the IBDA and account for the remittance on the same day by responding the IBDA. The receiving branch must also acknowledge receipt of the remittance in the sub-joined portion of Invoice duly signed by the Branch Incumbent, 2nd Officer and the Head Cashier. The acknowledgement should be handed over to the accompanying officer, who in turn will deliver the same to the remitting Branch on his return. For acknowledgement received the

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Deposit of Cash WithAuthorizedOfficers:

CashRemittances& Cash lifting:

relative column in the Cash Remittance Register (B-40) should be kept in the safe custody of the authorized official.

13.4 For lifting of cash from branch or branches specific and fresh Letter of Authority on each occasion should be issued in favor of the officer deputed for the purpose. Letter of Authority should be addressed to the branch from where cash is to be lifted as per intimation received. Where cash is to be lifted from more than one branch by an officer it is not necessary to issue separate letter of authority addressed to each individual branch. One Letter of Authority addressed to all branches should be enough. The officer concerned, on his return from the branches with cash, should surrender the Letter of Authority which should be cancelled and filed by the authorized official at the cash lifting branch.

13.5 At the receiving branch cash lifted from a branch or branches should be checked before the accompanying official as per particulars mentioned in the relative IBDA (s). The IBDA(s) should be responded on the same day of cash is received. An acknowledgement duly signed jointly by authorized officials as provided in the sub-joined portion of Invoice mentioned above should be sent out at once to the branch from where cash has been lifted.

13.6 The date of receipt of the acknowledgement from the cash lifting branch should be entered by the remitting branch in the Cash Remittance Register (B-40) against initial of the authorized officers. Non-receipt of the acknowledgement should be followed up with the cash-lifting branch without any delay. Acknowledgement should be preserved in a file.

13.7 Like Cash Remittances sent, records of Cash Remittances received should also be maintained in the Register (B-40) as mentioned herein above.

13.8 In both the cases of remittance received and sent the record of Cash Remittance shall be recorded in the Register (B-40) duly filled in the appropriate column without fail and that should be ensured by the Branch-Incumbent positively.

13.9 Shortage, if any, found in any packet should be recovered from the staff with due information to the branch-incumbent of concerned/respective branch and not be debited to Suspense Account. Due care to be taken to check embezzlement of cash in transit.

13.10 Any incident of shortage/excess of cash at the cash counter in the daily receipt and payment must be subject to written clarification/explanation from the concerned receiving and paying cashier. The excess payment/short receipt, if any, must be recovered from the concerned cashier on the spot and the excess, if any, must be kept in Sundry Deposit Account till identification of the cases and settlement thereof within the acknowledgement of the branch incumbent/competent authority.

The District Head quarter branches will make their remittance through Sonali Bank, Treasury Branches as per present practice. In case, if necessary, District Head quarter Branches will contact with Local Office, directly to make remittance to and from them.

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Shortage/Excess cashFound atCounter:

Where, there is Bangladesh Bank Office, the Divisional Head quarter Branches will avail the said remittance facilities through Bangladesh Bank and where there is no Bangladesh Bank Office, they will also remit to and from through Sonali Bank, Treasury Branch.

13.11 No soiled, mutilated non-issue notes are to be issued to cash counter for payment purpose. Such notes accumulated at the Branch are to be kept ready for getting exchange from Bangladesh Bank through the designated feeding Branch on collection basis under intimation to BDMD, Head Office. While the designated feeding branch has no scope to get those notes exchanged from Bangladesh Bank directly, the same may be sent to Principal Branch, Dhaka with prior approval from BDMD, Head Office, Dhaka. The branch shall ensure regular persuasion to Principal Branch, Dhaka till receipt of the Exchange value from them. The BDMD, Head Office shall monitor early disposal of the notes/remittance of the exchange value. Such remittances will be carried out by Principal Branch, Dhaka by its own escort with transport.

13.11.1 For such remittance the following entries are to be passed by the remitting branch.

Debit: Suspense Account

Credit: Cash in Hand Account

Debit: IBG Account (after receipt of the cash)

Credit: Suspense Account (after receipt of the cash)

14. When cash in vault of the branch, maintaining account with Bangladesh Bank or Sonali Bank exceeds the insurance limit approved by the Head Office, deposit the excess amount with the Bangladesh Bank or the Sonali Bank, as the case may be as per arrangement.

14.1 The deposit should be made by debit to “Balance with other Bank Account” Or “Bangladesh Bank principal Account” maintained with the branch/Local Office and cash deposited through pay-in-slip and in turn a receipt will be issued by the Bank with which cash is deposited.

14.2 Necessary entries should be made in “Balance with other Bank Account”/”Bangladesh Bank Principal Account” Register (B-62) wh7ch should be signed by the Manager or the authorized officer.

14.3 The officer who will carry and deposit cash with the Bangladesh Bank/Sonali Bank will sign on the reverse of the relative voucher.

14.4 The cash along with the pay-in-slip will be carried by the official concerned to the Bank accompanied by armed guard (s) and deposited against receipt issued by the Bank where cash is deposited.

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Deposit of Cash withBankers:

14.5 When the concerned official returns after deposit of cash, the counterfoil of the pay-in-slip should be checked by the Manager himself and pasted/kept with the relative debit voucher.

14.6 In case of Principal Branch Cash is being deposited to Bangladesh Bank through Financial Administration Division (FAD). Generally, FAD prepares & signs the pay-in-slip for depositing the money.

15. When withdrawal of cash from the Bangladesh Bank / Sonali Bank / other Bank is required where the account of the branch is maintained, the same may be withdrawn through cheque duly recorded in the Bank Ledger (B-62)/Computer after completion of necessary formalities.

15.1 The cheque should be drawn in chronological order under the signatures of the authorized officers in the appropriate manner. The Officer (s) who will be sent to bring the cash will sign on the back of the counterfoil of the cheque. Adequate armed guards should accompany the Officer(s) who will be sent to bring cash.

15.2 The amount of the cheque will be credited to Bangladesh Bank / Sonali Bank/ Other Bank Account by contra debit to Cash Account when the cash is received.

15.3 In case of Principal Branch, Bangladesh bank Cheque are issued by FAD as & when requested by Principal Branch for withdrawal of Cash from Bangladesh Bank.

15.4 Payment through counterfeit cheques should be checked.

16. If a branch outside Dhaka having T.T. discounting facility with the Bangladesh Bank or Sonali Bank at the same station is short of fund to meet its requirements for payment, the same may be managed by discounting T.T. with the concerned Bank within the limit fixed for the purpose, the T.T. being re-disbursable at Dhaka by FAD, Head Office.

16.1 When required a letter should be written to the Bangladesh Bank or Sonali Bank requesting them to discount T.T. specifying the amount of the T.T. to be discounted under signatures of the authorized officer.

16.2 A telegram will be sent by the branch to FAD requesting them to reimburse the amount of T.T. discounted to the bank concerned. On receipt of the telegraphic advice from the branch concerned FAD will arrange for the reimbursement to Bangladesh Bank or Sonali Bank as the case may be.

17. A Register (B-24) of all-important keys, including those of the Cashier must be kept at every branch. This Register will contain full particulars of the keys of the branch and will show where the originals and the duplicates are to be found. The entries in the register will be initialed by the official

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Withdrawalof CashfromBanker:

TelegraphicTransferDiscounting

Custody ofKeys:

holding the original key and the Manger. The entries should’ also be initialed by every incoming Manager, whenever there is any change of Manager. “Important keys” include keys of strong- room, doors and safes and cabinets therein containing cash, gold, ornaments, banks’ and correspondents’ control documents, articles in safe deposit, documents of value to the Bank, revolver and gun licenses etc.

18. None of the custodians is authorized to leave the ‘Important keys’ with any officials without the written approval of the Manager and Manager without the approval of the competent authority. Such approval should be recorded in the Key Register (B-24) by making proper entry under due authentication of the Branch Incumbent.

18.1 When the strong-room keys and other keys are kept in the personal safe of the Manager (or the 2nd officer jointly in-charge of cash), the key of the safe in which they are lodged must not leave his custody. Sub-ordinate employees of other unauthorized persons must never be allowed to handle the keys of the strong-room and safes, for any purpose whatsoever. Should this by any chance occurs, the circumstances must be immediately reported in full to Head Office so that necessary steps may be taken to safeguard the Bank’s interest. A small safe may also be given to the 2nd Officer/Cash in-Charge for keeping the strong-room keys, important documents etc. and others keys held by him. The key of this safe must not leave his custody. The important keys should never be given to any unauthorized officer or person nor made visible during the course of use and custody at any moment.

18.2 In the event of absence from duty, the 2nd Office/Cash-in-Charge may, subject to the approval of the Manager, authorize his senior-most assistant to perform his duties.

18.3 Great care must be taken with all locks and keys. Any important key Showing signs of serious wear should be send to Head Office in a sealed packet in order that a new one may be made the duplicate being used meanwhile. No important key may be made, and, except in an emergency, no repair to any important lock may be carried out by local mechanics without the prior permission of Head Office.

19. The duplicate keys of the strong-room and the duplicates of all other important keys must be greased and labeled and put into a strong wooden or tin box.

19.1 The box containing the duplicate keys of the branch must be locked or otherwise secured, wrapped in waterproof cloth and sealed by the Manager with the branch seal in the presence of the 2nd Officer/Cash-in-charge and the supervising official concerned. The packet will be labeled with the name of the branch.

The box will then be signed by the Manager and deposited at the nearest branch of SIBL/the Bangladesh Bank or Sonali Bank or any other Bank of good standing as Head Office shall instruct. If the duplicate keys are to be deposited by one branch with another near by branch of the Bank, the same

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Custodiansof ImportantKeys:

DuplicateKeys:

procedure should be followed. In all cases, the relative safe deposit receipt will be entered in the Branch Documents Register (B-26) and kept with the other documents in Branch documents file. The acknowledgement in this regard must be preserved along with the duplicate copy of the forwarding letter duly signed by the Manager & 2nd Officer.

19.2 Duplicate keys must be removed from the safe deposit at every inspection / audit of the branch and whenever there is change of Manager, 2nd Officer/ Cash-in-Charge. The reason for and the duration of their holding after withdrawal will be recorded in the Key Register (B-24) . The packet must be opened by the Manager in the presence of the 2nd Officer & Cash-in-Charge of Cash who will themselves break the seals on the packets containing their keys. When the duplicate keys have been examined, they may be taken into use and in their place the originals may be deposited in the packet in accordance with previous para. If, however, the duplicate keys are more worm than the original, the duplicates will be re-greased and re-deposited.

19.3 Every effort must be made to return the packet for safe deposit in the same day, failing which the steps taken for its safe keeping must be reported to Head Office/Zonal Office. When the packet is held by another branch, the dates of its withdrawal and redeposit will also be advised to Head Office/ Zonal Office by that branch.

19.4 The duplicate keys of all other cabinets, almirahs, boxes etc. will be greased and labeled showing the names of the official holding the originals thereof and locked in a box, the key of which will be kept by the Manager or the authorized officer and kept in the strong-room. Particulars of these keys will be recorded in a separate section of the Branch Keys Register.

20. All concerned are advised not to keep any amount in their vault/counter exceeding the cash limit covered by the insurance taken for their respective branches and in case of remittance per single carry limit must not be exceeded.

20.1 All officials should not go to prayer at a time keeping the cash unsafe rather it may be performed by phases.

20.2 No doubtful entry of stranger shall be allowed inside the branch.20.3

20.4 Control over computer operations should be ensured .Daily computer sheets should invariably be checked by the respective authorized officer other than the computer operator, from the vouchers.

20.5 Key of vault/safe/Almirah must be under the custody/possession of the respective authorized custodian and be used by them in every deposit/withdrawal duly recorded.

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CautionaryNotes:

CHAPTER-XXVII

LOCKER SERVICE

Some branches are provided with safe deposit Lockers by Head Office to enable them to offer facilities to the public for safe deposit of their jeweler, important documents and other valuables. Instruction as set out in the succeeding paragraphs will be followed in connection with operation in the safe Deposit Lockers.

1. The Lockers holder must have a Mudaraba Saving or current Account with satisfactory transactions/balances. Minimum Balance of TK.5,000/-is to be retained in the account of the Locker holder.

2. Lockers will be leased out to a hirer on the basis of application in the prescribed from F-46 which contains the detail terms& conditions of hiring the Locker printed at the back page thereof, as a token of having accepted the terms & conditions.

3. Locker holder may nominate nominee(s) for receiving valuables in case of death of Locker holder.

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Bank Account:

Application:

Nomination:

Specimen Signature:

4. Specimen Signature of lessee/hirer shall be recorded in F-3 and the same (specimen Signature) as well as the signature in application form must be attested by the Manager of the Branch/Authorized Officer.

4.1 The Lessee desiring to authorize a third party to operate the Locker on his behalf will sign Mandate Form F-16 and Specimen Signature Card F-3. This facility should, however, be extended at the discretion of the Manager to persons of known standing and respectability.

5. 2 (two) copies of passport size photographs shall have to be obtained.

6. The locker holder must inform his changed/latest address to the Bank. All letters sent by the Bank to the recorded address of the locker holder will be treated received by him.

6.1 The client(s) has/have no ownership of the locker. He can only use it as per condition of the deed. The client cannot hand-over or sublet the locker. The client may keep only deeds, ornaments or any valuable things in the locker but not any arms, ammunition and explosives or illegal things or papers as per terms of the agreement.

6.2 The bank has right to close the locker section for a certain period or forever if considered risky without serving any notice to the locker holder(s). The Bank reserves the right to refix the time of opening/closing the locker.

6.3 Either of the parties may cancel the deed through saving 30 days notice. In such case the locker holder must hand-over the keys of the locker to the bank within noon of the day of dismissing.

6.4 If the locker holder does not serve notice for dismissal of the deed, it will be treated renewed the agreement for the next year.

6.5 Bank is not responsible for any loss/damage of the things kept in the locker by riot, robbery, fire or natural incident.

6.6 The relation between the locker holder and the Bank will be of locker hirer and locker owner.

6.7 The locker holder/hirer is bound to carry out the rules for operation of the locker to be amended/changed/modified from time to time.

7. In all cases a password (code word) shall be given to all Locker holders and the same shall be recorded in Specimen Signature Card to facilitate operations of Locker without doubt. The locker holder shall keep his/her password secret.

8. Locker shall be allotted on yearly basis. The Locker holder will pay the yearly rent in advance at the time of allotment and subsequently rentals will be recoverable in advance.

9. The schedule of rents depending on the size of the Locker will be decided by the Head Office and circulated to the branches from time to time.

1

Photographs:

GeneralInstructions:

Pass Word:

Allotment:

Schedule ofRates ofRental:

9.1 The advance rent paid by the Locker holder will be credited to “Income Account: Locker’s Rent”.

10. Locker Key Security Deposit shall be realized as fixed by Head Office while allotting Locker and the same shall be kept in Sundry Deposit Account: Locker Key Security Deposit.

10.1 Locker Key Security Deposit is refundable at the time of return the Keys.

11. The Key of the Locker will be handed over to the Locker holder after completion of all formalities and obtaining proper acknowledgement.

11.1 The locker holder must keep the keys in a secured place and must not hand-over the keys to any person except authorised representative(s) and he must be careful on the issue.

12. Operation of Locker shall be allowed within business hours of the Bank.

13. The record of attendance & operation of Locker should be maintained in Locker Operation Register .

13.1 Before allowing the Locker holder to operate the Locker, he must sign in the appropriate column of Locker Operation Register in presence of the Manager/Authorised Officer who will attest the same from the Specimen recorded in the Bank. He will also ask for the ‘password (code word) and verify the same. Thereafter, he shall allow him/her to enter the Locker room on being satisfied beyond doubt as to the identity to the Locker holder.

14. Locker Register shall be properly maintained with full particulars of the locker holder(s) and payment of rentals.

15. Master Key will be kept by the Manager/Authorized Officer of the Branch.

15.1 Duplicate Master Key along with other Keys shall be kept in nearest SIBL Branch/Bangladesh Bank/ Sonali Bank.

16. Yearly rental will be realized at the time of letting out the Locker and proper receipt to be issued in this regard.

16.1 30 (thirty) days before the next rent falls due, a reminder should be sent to Locker holder for payment of rent for the following year.

16.2 Rent of locker is payable always in advance and if the client does not pay the next installment soon after payable, the Bank may exercise the power to control the access of the client into the locker.

1

Locker KeySecurityDeposit:

Hand-overThe keys:

Working Hours:

LockerOperationRegister:

LockerRegister:

Master key andDuplicateMaster Key:

Recovery ofRent:

16.3 If the locker holder is unable to pay the yearly rent of the locker or any of the conditions in this connection is violated by the locker holder, the rights of using the locker by the locker holder will be voided. In such case the Bank has the right to send the valuables to the recorded address of the locker holder by breaking the locker after obtaining necessary approval from the competent authority.

16.4 The client will possess the general lien on the valuables which has been brought near the locker and kept in the locker. The Bank possesses the right to realize the locker rent through selling of the valuables if the locker holder fails to pay the dues.

1 In cases of loss of key by the Locker holder the branch after being satisfied shall arrange to break open the Locker after obtaining prior approval from Head Office and on recovery of penalty of Tk. 500/- and actual cost of breaking open the Locker and replacement of the Lock.

17.1 The repairing works of the hired lockers/drawers of the lockers/keys etc.will be done by the approved technician of the Bank.

18. If a Locker holder is reported dead, the Locker shall be sealed and no one shall be allowed to operate the same. Opening of Locker shall be allowed only after obtaining court order and approval from the Head Office.

18.1 However, if there is any nominee, he will be allowed to receive the valuables.

19. The Manager of the Branch shall be the custodian of the Locker. However, in case of a big branch the 2nd officer of In-Charge of General Banking may be authorized to work as custodian of Locker under intimation to Head Office.

20. The Branch should maintain a record of all used and unused keys of lockers. There will have a clear picture of unused keys/lockers in the register.

CHAPTER-XXVIII

CLEARING AND COLLECTIONS

1. Clearing and Collections are very important items of bank’s business and without which we cannot think of Bank transactions effectively. All cheques, Payment Order, Demand Drafts and other credit instruments tendered for the credit of customer’s account are delivered by the depositors at the clearing and collection counter. Deposits received by post

1

Loss of Key:

Death of LockerHolder:

Custodian ofThe Locker:

MaintenanceOf used andUnused key:

Introduction:

are to be sent over to the clearing and collection counter. Both Usance and Demand Bills are received at branches for collection or realization.

1.1 Clearing is a process of collection & payment of instruments (cheques, payment orders, drafts etc.) through inter bank settlement under the leadership of Bangladesh Bank / Sonali Bank (where branch of Bangladesh Bank is not available). Instruments of the clearing area are received by and drawn on the bank (s) (members / sub-members) for credit to/ payment from customers / bank’s accounts collection and payment of clearing instruments are done in the following manner:

1.2 Clearing House arrangement has been established for settlement of payment of different instruments of different Banks of City Corporation/ Municipality area branches. Bangladesh Bank generally acts as organizer of clearing House and Sonali Bank do the job on behalf of Bangladesh Bank, where there is no Bangladesh Bank. Every local schedule bank is the member of the clearing House. The Branches of each clearing house member Bank of the locality is/are the sub-member of the House. The settlement of accounts is done by member bank on behalf of their respective bank’s sub-members.

2.

2.1 The instrument is received duly entered in the voucher (s) pay-in-slip (F-07) duly recorded in the Subsidiary Day Book. Instruments so by the received must be generally and specially crossed.

2.2 The instrument is checked for any apparent discrepancy and is compared with the particulars noted in the pay-in-slip and its counter-foil.

2.3 In case an Order instrument, proper identification and endorsement is required. However, in case an order instrument is being deposited in second payee’s account or payee’s name on the specially crossed instrument differs slightly from that of the depositor, the instrument may be accepted only from the customers well known to the bank after obtaining a guarantee/an indemnity there against which is to be attached to the pay-in-slip.

2.4 Instrument(s) suitably discharged/endorsed/sealed/crossed is/are sent to the In-charge along with the pay-in-slip for checking and signature thereon after affixing the relative stamps on the instrument, pay-in-slip and the counterfoil. Then the instrument and pay-in-slip are detached from the counterfoil and the latter is handed over to the customer.

3. The particulars of the instruments and the vouchers are entered in the outward Clearing Register (B-9)/ Computer. Then get the Clearing Register/Computer entries balanced and the vouchers separated from the instruments lodged and ensure sending of the instrument(s) to the respective Department against acknowledgement in the register.

1

Clearing:

Clearing House:

Receipt of InstrumentBy the branches:

Outward Clearing

Clearing Items:

3.1 The instruments are arranged bank-branch wise. The sub-main schedule/computer diskettes are prepared in triplicate, two copies of which are attached with the relative instruments. The grand total of the schedule is taken and agreed with that of the registers/computers total. Then the house page/computer entry is prepared in duplicate and is sent to the Principal Branch /designated Branch with the instruments for clearing purpose.

3.2 Social Investment Bank General (SIBG) A/C (L.O/designated Branch) is debited through inter Branch Debit Advice (IBDA) for the total amount of the instruments sent duly recorded in the IBDA issue Register (B-45) and credited to the clearing adjustment A/C. The entry is passed as under:

Dr. SIBG A/c. Principal Branch /Designated Branch

Cr. Clearing Adjustment A/C.

3.3 The instruments along with IBDA are sent to Principal Branch /Designated Branch. The entry relating to Clearing Adjustment A/C is reversed on receipt of clearing return from Principal Branch /Designated Branch by passing the following entry.Dr. Clearing Adjustment A/C.Cr. Concerned Depositor’s A/C.In case of returns of instruments:Dr. Clearing Adjustment A/CCr. Sundry Deposit A/CCr. SIBG A/C. Principal Branch /Designated Branch (for the return and by responding the IDBA)

4. The instrument is received in the similar manner as explained in the earlier Para’s.

5. The instruments with schedule/computer diskette as received by the

branch by the (Member) from the branches (Sub-members) are re-arranged bank-branch wise.

5.1 The amount of the instruments received from the branches are entered in the Outward Clearing Register (B-9)/Computer and IBD as are entered in IBDA Received Register (B-45).

5.2 The Main schedule for each Bank is prepared and total amount from the respective sub-main schedule are entered thereon.

5.3 The Clearing House Book (B28)/Computer diskette is prepared in duplicate, and the total is balanced with that of the Clearing Register/Computer.

5.4 The following entries are passed while instruments are sent to Clearing

House (Bangladesh Bank) to give accounting effects: Dr. SIBG A/C, FAD, Head Office.

Cr. Clearing Adjustment Account (Clients of members Branch) Cr. Clearing Adjustment Account (Sub-member Branch)

1

Receipt of Instrumentby the Principal Branch:

Lodgment by the Principal Branch:

Clearing House at thetime ofplacement of instrumentsto the house:

6. The instruments with schedule, Clearing House Book /Computer diskette are to be sent to the Clearing House for realization of proceeds.

6.1 Thus the instruments so far piled at Principal Branch/Designated Branch are delivered to the representative of respective banks and simultaneously receive their instruments as delivered by other banks at the Clearing House.

7.

7.1 The instruments drawn on our bank as received from other branches in Clearing House are entered in the Clearing House Book (B-28)/Computer from the main schedule of the respective bank mentioning the amount and

number of the instruments.

7.2 The amount of instrument delivered received & the difference is written or a figure slip provided in the Clearing House and the slip is returned.

7.3 The instrument with schedules are arranged branch wise in duplicate and a copy of each Schedule is detached.

7.4 The amount of each schedule is entreated in the Clearing House Book. (B-28) of the respective branches. The respective house pages are totaled, the total of each is noted on a slip and a grand total is taken out which will agree with the total of clearing house book.

7.4.1 For total instruments received from clearing house the following entries are passed:Dr. Sundry Depositors/PO/DD payable etc. A/Cs (Principal Branch)Dr. SIB General A/c of the sub-members

Cr. SIB General A/c, FAD, Head Office.(Being the amount of total instruments received from clearing house)

7.5 The instruments are sent to the respective sub-member branches along with IBDA(s) and with the slip showing total amount and number of instrument sent retaining the instrument meant for the Member Branch.

8. The instruments are sent to the branches concerned for clearance. The

Clearing House Book along with the duplicate schedules and filed.

a) Particulars of the instruments are compared with the Schedule and the slip in along with IBDA and the Schedules are detached.

b) Returned instruments are sent to Principal Branch/Designated

Branch along with IBDA within the fixed time frame for onward submission to Bangladesh Bank Return House.

c) The following entries are passed at the time of return inward:

1

Inward Clearing:

Clearing House at the time of Receipt of Instruments from the House:

Dr. Sundry Depositors /Clients A/C(Sub-member Branch) Cr. Clearing Adjustment A/c

(Being the amount of instruments returned dishonor to clearing house)

d) For return outward the entries are as under: Dr. Clearing Adjustment A/c

Cr. Sundry Depositor A/c(Member) Cr. SIB General A/c(Principal Branch)

(Being the amount of instruments presented in the House received dishonored from Clearing House).

10. The amount of instrument presented/received/returned (inward & outward)

through Clearing Account shall be settled by observing the following procedures: At the end of the day, the Clearing Adjustment Account will show a nil balance-by transferring the credit balance/debit balance to Bangladesh Bank/Sonali Bank account maintained for the purpose. For favorable/un-favorable House, the following entries are to be passed to make the Clearing Adjustment A/C balance nil.

In case of favorable House:Dr. Bangladesh Bank/Sonali Bank A/cCr. Clearing Adjustment A/c

In case of un- favorable House:Dr. Clearing Adjustment A/cCr. Bangladesh Bank/Sonali Bank A/c

In every case Bangladesh Bank/Sonali Bank Dr./Cr. Advices are to be verified and matched to the entries.

10.1 Every receipt/return of clearing instruments (inward & outward) must be recorded in Clearing Register (B-9)

10.2 Every out return must be recorded in Cheque Referred & Return Register (B—50). Dishonor of instruments must be under the authentication of Manager/ 2nd Officer with due intimation to the drawer.

10.3 In case of Return inward the fate of the instruments must be intimated to the depositor with/without the instruments as warrants.

11. Transfer Delivery:

11.1 Receipt of Instrument by the branches:

11.1.1 The instruments are received from the customers/ departments & similar procedure is adopted as explained earlier in previous sections.

1

Settlement ofClearing House A/c:

11.1.2 The collecting branch prepares a schedule of all the cheques drawn on the branches at Dhaka City area and debit SIBG Account Principal Branch for the entire amount. Accordingly they prepare a debit advice (IBDA) to send the same to Principal Branch for collection of the instrument under Transfer Delivery System.

11.1.3 The instruments with schedules, advice received from the branches are arranged branch-wise and a main schedule is prepared to enter the same with total amount in the Outward Transfer Delivery Register (B-9).

11.1.4 The amounts of advice received from the branches are also entered on the opposite page of the above noted register and the register is balanced.

11.1.5 Principal Branch, in time, debits the Transfer Delivery Adjustment Account to respond the related IBDA(s) of the respective branches. Principal Branch at the same time again debit the drawee branches by IBDA after sorting all the instrument branch-wise. Then send the instruments along with IBDA to respective branches.

11.1.6 In case of return unpaid of any instrument from any drawee branch, they send IBDA and instruments to Principal Branch again for settlement of the transfer delivery at Principal Branch.

11.1.7 The Principal Branch will further debit the Originating branch and Credit the Transfer Delivery Adjustment Account for final settlement at Principal Branch. At Present Office leads the function of Transfer Delivery activities with the branches of Dhaka City.

11.1.8 Every receipt/return of Transfer Delivery Instruments (inward & out ward) must be recorded in Transfer Delivery Register (B-9)

12. Outward Bill for Collection (OBC):

The instruments received enclosing Pay-in-slip are duly checked and compared with the particulars noted in the Pay-in-slip and its counterfoil shall be entered in the Subsidiary Day Book .

12.1 The instrument and the pay-in-slip are detached from the counterfoil and the later is handed over to the customer duly stamped and signed.

12.2 Outward Bills for The details of the instruments are entered in the

Collection Register (B-31) and a collection number is allotted in serial order which is also noted on the instrument and the pay-in-slip duly initialed by the authorised officer. The instrument is sent to the collecting branch under registered post/enlisted courier service through a forwarding schedule (F-13) with necessary instructions for collection and remittance of the proceeds the pay-in-slip is to be kept/preserved in the OBC outstanding file with care to guard against fraud forgery altering the Particulars of the pay-in-slip or by keeping a fake pay-in-slip in OBC file removing the original / genuine one.

12.2 The instrument drawn on other banks are sent to the nearest main branch

of the bank of the locality and the instruments drawn on our branch easement direct to the respective branch.

1

Collection of OutstationCheques:

12.3 At the time of sending the instrument for collection, the following contra entries are passed:

Dr. Outward Bills Lodged A/c. (OBL)Cr. Outward Bills for Collection A/c. (OBC)

12.4 On receipt of the collection proceeds the following vouchers are to be passed:

(a) Dr. Outward Bills for Collection A/c. (OBC)Cr. Outward Bills Lodged A/c. (OBL)

(Being entry passed on……….against OBC No………now reverse on collection / return).(b) Dr. SIBGen A/c (Collection Bank)

Cr. Clients / Depositors A/c(Being the OBC No……..sent for collection now realized)

(c) For realizing the charges/commission:Dr. Client’s A/cCr. Income A/c (Commission)Cr. Income A/c (postal charges)

12.5 Debit and Credit advices (F-21 & 20) are to be sent to the clients for information and necessary action.

For realizing the charges/commissionDr. Client’s A/cCr. Income A/c (Commission)

Cr. Income A/c (postal charges)(Being the amount to commission and postal charges incurred now realized)

12.6 The outward Bills lodged are to be balanced monthly with the figure so the outstanding OBC vouchers on the particular date.

13. Collection of documentary bills (sight):

13.1 The pay-in-slip duly completed is received along with the Bill of Exchange, Invoice and Railway Receipt/Steamer Receipt/Truck Receipt /Bill of Landing/Consignment Note etc.

13.2 The documents are checked to ensure:-

a) Pay-in-slip and invoices are duly signed by the party and/ their authorised representative (s).

b) The Bill of Exchange/RR/SR/TR/BL/CN are drawn/endorsed in favor of the Bank

c) The bills are listed in a forwarding schedule in case the bills are sent to other bank.

d) The other processes are similar to that explained in section 12.00.

14. Realisation of proceeds through advice:

14.1 On receipt of the related realisation advice, the following entries are passed.(a) Dr. Outward Bills for Collection (OBC) A/c.

1

Cr. Outward Bills Lodged (OBL) A/c.(b) Dr. SIBG A/c. (Branch Concerned)

(Br. Advice is treated as debit voucher)Cr. Party’s AccountCr. Income Account (Postage/Telegram charges recovered)Cr. Income Account (Commission)Cr. Income Account, (others, if any)

14.2 The date of payment is marked in the Register (B-31) and office copy of the schedule and pay-in-slip are to be stamped and numbered serially as per register. The voucher, pay-in-slip, schedule and the realisation advice along with the register are sent to the Officer-in-charge for checking and signature.

14.3 The vouchers are released and the schedule is filed in the “OBC Paid File” and the realisation advice is to be sent to Depositor/Client.

15. Realisation of proceeds through Demand Draft(s) of other Banks (S):

15.1 When presented through clearing house, the following vouchers are passeda)Dr. Clearing Adjustment A/c./Cash A/c. For full amount of bill. For Bank’s charges, if any, retained by the outstation collecting agent-

Cr. Party’s Account.Cr. Income Account (Postage/Telegram Charges recovered).Cr. Income Account (Commission on bills).

b) Dr. Outward Bills for Collection (OBC).Cr. Outward Bills Lodged (OBL).

16. If the realisation advice is not received within one week in case of cheques and two weeks in case of documentary bills or as otherwise required, reminder on standard printed form should be issued.

17. Inward Bills for Collection (IBC)

17.1 When instruments stamped, numbered in the Inward Bills for Collection Register (B-32) are received from own branches or other banks they are to be checked. For any apparent discrepancy sender to be contacted for disposal instruction.

17.2 The following Vouchers are also prepared and attached with the instruments:a) When bills are received from other branches-Dr. Party’s A/c.Cr. SIB General Account (Concerned Branch)b) When bills are received from other bank

Dr. Party’s A/c.Cr. Demand Draft on nearest Branch.Cr. Income Account (Postage Recovered)

1

Issuance ofReminder

Collection of Cheque:

Cr. Income Account (Commission on bills)

17.3 The Voucher schedule and instruments along with the register are to be sent to the in-charge for checking and onward placement of the said instrument/voucher to concerned department/desk for necessary action.

17.4 Then the schedule is filed in the IBC instrument file.

18. No transfer of fund through IBCA be allowed from/to any Private Account out obtaining Prior approval from Head Office. Remittance through IBCA(s) can only be made to the specific account number of a particular branch approved by the competent authority. Branches may remit fund to any Private A/c through. T.T/D.D even if the same is approved free of cost by the authority.

CHAPTER-XXIX

PAYMENT ORDER, DEMAND DRAFT, TELEGRAPHICTRANSFER AND HANDLING OF TEST KEYS

1. All Demand Drafts and Payment Order leaves/blocks will be kept in the joint custody of the Manager and the 2nd Officer or the authorised Officer who will satisfy themselves daily that every leaf issued by them has been accounted for in chronological order. Detailed instruction regarding the custody and issue of Bank’s security instruments are laid down in Chapter-IX and these must be carefully and strictly followed:

1

RemittanceOf fund to The privateA/c. through IBCA.

Custody of SecurityInstruments:

PaymentOrder:

2. All local payments, whether on behalf of the Bank or the Bank’s constituents, will be made by means of payment Orders which will be signed jointly by two authorised officers. When the Bank’s constituents request for issue of Payment Orders, they should apply for the same on the prescribed form (F-44) along with the required money (Cash/Cheque) including the Bank’s Commission and other charges. Payment Order is issued for settlement of local payment duly recorded in the Payment Order Accounts Register (B-15) /Computer. The Payment Order should be written neatly as per application form.

2.1 The signing official must see that the particular(s) of each Payment Order have been entered in Payment Orders Account Register No. B-15/Computer. Each original entry being marked off with the contra date (date of payment / cancellation) and be initialed in the Register by the official passing the Payment Order for payment. The Payment Order Accounts Register is self balancing one thus the balance in the Register/Computer must be compared daily with the Clean Cash Book and General Ledger (B-04) by a supervising official. The Payment Order Accounts Register/Computer figures(commission, other charges & amount of P.O. issued) must be summed daily and daily figures are to be verified with the concerned figures in the Clean Cash Book and General Ledger (B-04).

2.2 The Bank’s Payment Order is an instrument which might be paid complying with following:

a) the payee on identification,b) the payee’s banker who should certify that the amount has been or

will be placed to the payee’s credit, or

2.3 The amount of a Payment Order in favour of a third party may be refunded to the purchaser duly released by the payee cancellation provided the original Payment Order is surrendered by him to the Bank. Cancellation charge as per rate in force should be recovered for credit to Income Account (Commission).

3. The balance of the payment order A/c must be balanced at least once in a month taking outstanding items entry wise in the Balance Book (B-23). At the close of each year ending the outstanding entries in the Payment Order Register are to be carried forward to the next year. If a Payment Order is not promptly presented for payment, the person at whose instance it was issued or the remitting branch, as the case may be should be contacted and requested to arrange for its encashment at an early date. The total of the outstanding entries must be tallied by the authorised officials to balance with the balance of the accounts in the Clean Cash Book and General Ledger on the date of balancing.

4. Application for Demand Draft will be taken on prescribed When an application is received by letter the prescribed application forms should be filled up with the required particulars taken down from the letter and authenticated by the authorised supervising official, the letter then

1

Balancing:

Application Form/IssuanceOf DD forms F-43.

being carefully filed with the voucher. Reference of the letter should also be recorded in the application form.

5. Commission and other charges for the issuance of Demand Drafts will be realised from purchasers at the prevailing rates of the Bank. Any change in the rates will be communicated to the branches by the Head Office through circulars from time to time.

6. The tendering of a Cheque in favour of the Bank itself is no authority for the Bank to issue a Draft by debit to the drawer’s account. The cheque should be accompanied with an application on the prescribed form or a letter requesting the Bank to issue the required draft which should be signed by the person(s) authorised to operate the account. In case of cheques drawn on other banks, it will not be possible to verify the signatures on the application forms with those on the cheques. It follows that when two or more signatures are necessary for operations on an account, the application should ordinarily be signed by the requisite number of parties authorised to operate the account even if, it is accompanied by a cheque which is properly signed.

6.1 The signature and particulars of an application for a Demand Draft to be issued by debit to the applicant’s account must be carefully verified/checked and when the account is debited the letter or application should be cancelled with and Transverse Line or oblique line and “entry passed” be written thereon. The cancellation will be dated and initialed by the official signing the vouchers and the letter will be carefully filed / preserved for record/reference.

7. When a draft is to be issued, the relative Application Form F-43 will be sent to the Manager or the authorised officer who after satisfying himself that the voucher(s) has/have been duly passed/entered in the Receiving Cashiers Book (B-07) in case of a cash transaction, or in Transfer Scroll (B-06) in case of a transfer transaction noting the printed number of the DD in the application form (specified space) under the initials of the issuing officials.

7.1 Drafts must be issued in chronological order free from alterations under the joint signatures of authorised officials. All details in such instruments must be clearly and neatly written in ink and the instrument is to be protector-graphed or figured by Check Writer Machine across the face at the top with the amount payable after the words “ Not over Tk……..”. If there is no protector-graph machine or Check Writer Machine in the branch the words “Not over Tk…..” should be written in red ink. As the names of branches are not printed on Bank’s draft forms, particular care must be taken that all drafts, before they are issued, are branded with the Branch name seal just below the name of the Bank. Any other special instruction issued by the Head Office in connection with issuance of Draft should also be carefully observed and followed.

7.2 When a Draft leaf is spoiled in preparation, the next one to be issued and the fact should be noted against the form number in the relative Register

1

Bank’s Commission

Issuance of DDAgainstTendering of Cheques:

ProcedureOf IssuanceOf DemandDraft (DD)

under the initial of the Manager or the authorised officer. Spoiled leaf should be cancelled by the authorised official duly authenticated and be preserved in a separate file for purpose of verification by the auditors. For further protection the space for authorized signatures must be wiped out from the leaf.

8. Bank Drafts and TT’s may be entered in a Draft/ TT issue Register (B-30). The daily total of the DD/TT’s amounts and the commission amount therefore (respective columns of the Register(s) are to be verified with the concerned figures of the Clean Cash Book and General Ledger) will be carried into the Clean Cash Book and General Ledger under “ Social Investment Bank General Account” and Income A/c :”commission” respectively. These will be checked by the Manager or the authorised Officer in the same evening or latest by the following morning and compared with the amounts carried into the Clean Cash Book which will be signed by him. The Registers will be summated and tallied with the figure that of General Ledger and closed at the end of each year.

8.1 Particulars of all Demand Draft, Telegraphic Transfers and Payment Orders should be entered in relative Registers before signing the instruments. The signing official must verify the orderliness of the instruments with the relative vouchers and the entries in the Registers, which will be initialed by him.

8.2 The Particulars of each draft issued will also be entered in the relative advice of drafts issued (IBCA) simultaneously with the draft and will be installed by the signing official. All draft advice (s) i.e. IBCA issued duly signed by Authorised officers of the Branch and will be sent to the drawee branches on the following day duly recorded in the IBCA issue Register (B-45). The daily total of IBCA register must be tallied / verified with the concerned figures (daily total) of the DD/TT issue Register. Similarly the TT Confirmatory Advice (IBCA) is/are to be issued/forwarded for TT’s issued.

9. The Draft Advice should not ordinarily be handed over to the payee / beneficiary but should be dispatched direct to the paying Branch.

10. For facilitation of encashment to payee of the Draft a Letter of Introduction is issued by the issuing Branch. In case of Draft purchased by the payee himself, who is not known to the drawee branch, the Manger may at his request issue a letter of introduction addressed to the drawee Branch attesting therein the signature of the payee and the letter may be handed over to him in a gala sealed cover marked ‘Secret’ for delivery to the Manger of the drawee Branch. Attestation of the payee’s signature must be made under joint signatures of the officials who have signed the relative drafts. On receipt of the said ‘Secret’ cover the Manager of the drawee office will examine the cover minutely and ensure that no tampering has been made in the ‘Gala Seal’ and on being fully satisfied, he will accept the identification of the payee after obtaining his fresh signature which should agree with the signature that has been attested by the issuing Branch. The

1

Demand Draft issueRegister

Entry of Particulars

Issuance &Dispatch of Advice:

Delivery of Advices:

Letter of Introduction

drawee Branch will, however, pay the draft if the same is otherwise in order in all respects.

11. When a Draft Advice is received, the same should be recorded in the Draft Payable Register (B-29) & IBCA Received Register and the following entries will be passed:

Dr. Social Investment Bank General (SIBG) A/c. (Issuing Branch)

Cr. Drafts Payable Account.

Before passing Cr. Entries signature on the IBCA must be verified by the Authorised Officials.

When a Draft is presented for payment, it will be recorded in the Draft Payable Register and then sent to the authorised passing officer who will see that the signature on the Draft is genuine, test number is OK and thus to confirm that the draft is in order in all respects before passing it for payment. He will put his initial against the signature and Test on the DD at the time of passing the draft and the following entries are to be passed:

Dr. Draft. Payable A/cCr. Client’s A/c

In such cases Draft itself will act as Draft payable Debit voucher and Draft payable Seal should be affixed on it. The contra dates of the receipt of the Draft Advice and payment of the Draft are to be marked in the Register under proper authentication. The Draft Payable Register (B-29) is a self balancing one. The balance of the account is/are to be drawn daily and verified with the Clean Cash Book and General Ledger (B-4) by the authorised officer.

12. Extreme care must be exercised when draft is presented for payment before

the receipt of the relative advice (IBCA). Such payments may be made under the authority of the Manager/Authorised officer who will satisfy as to the identity and respectability of the presenters and also the genuineness of the signatures of the drawing officials. The question of identification in the case of cash payments will be as per letter of introduction. In the absence of such letters, identification by a party with substantial means who is well-known to the Bank would normally be acceptable.

12.1 In all such cases where a draft is paid Ex-Advice it should be made to the debit of Drafts paid Ex-Advice/Computer and the following entries are to be passed:“Dr. Drafts paid Ex-AdviceCr. Client’s Account”

At this stage the Drafts Paid Ex-Advice A/c will show a debit balance. Drafts paid Ex-advice seal will be affixed on the face of Draft. These entries should be reversed only on receipt of the relative draft advice as under:

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Payment Procedure atPayingBranch withAdvice:

Ex-AdvicePayment:

Dr. SIBG A/c. (Issuing Branch)Cr. DD Paid Ex-Advice.

No payment against the Draft without advice should be made if the Branch Manager/authorised officer is not fully satisfied with the genuineness of the draft and also the identification of the beneficiary.

13. The outstanding entries of Drafts Payable A/c and Draft paid Ex-Advice A/c will be taken down and the totals thereof be agreed with the balances of the respective accounts in the Clean Cash Book and General Ledger at least once a month by a supervising official.

14. If the amount of Draft is required to be refunded by cancellation to the purchaser, the purchaser must apply in writing to the Manger along with the Draft giving reasons for the cancellation. If the Manager is satisfied about the genuineness of the application after verifying the signature on the application with the concerned application form for purchases of the draft and also about the reasons for cancellation, he will cancel the draft by writing the word ‘CANCELLED’ in bold letters in Red Ink across the face of the draft or affixing cancelled seal and attach the cancelled draft with application. Thereafter, the discharge of the purchaser must be obtained on the Revenue Stamp of appropriate value on the reverse of the draft under the words “Received payment by cancellation”. The amount of the draft will be paid by debit to the Drawee Branch through Islami Bank General Account treating the Draft as Dr. Voucher under advice (IBDA) on joint signatures of authorised officers. The IBDA shall have to be dispatched on the same day duly recorded in the Draft issue Register (B-4 30) and IBDA issue Register (B-45) and cancellation charge at the prescribed rate should be recovered for credit to Income A/c “Commission” The following entries are to be passed:

a) Issuing Branch :Dr. SIBG A/c. (Drawee Branch)Cr. Cash/Purchaser A/c.

b) Responding Branch:Dr. Drafts Payable A/c.Cr. SIBG A/c. (Issuing Branch)

15. When a TT application form (F-17) is received by the authorised officer, he will confirm that the amount of TT along with commission and Telephone/Telex charges are duly received by either in Cash or transfer to debit of the client’s A/c.

The particulars of receipted voucher then will be entered into the TT Issued Register (B- 30) in chronological order. The Test No of the TT will be inserted/applied by the authorised Test Key holders. Then the tested

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Balancing ofDraftsPayableAccount:

Refund byCancellation:

ProcedureFor issuanceOf T.T.:

message will be conveyed/transmitted immediately through Telephone/Telex by the authorised officer of the branch.

The confirmatory advice (IBCA) with detail particulars of the TT shall be sent to the payee branch on the same day duly recorded in the IBCA Issued Register (B-45).The following entries shall have to be passed:

Dr. Cash/Party’s A/c

Cr. SIBG A/c of the concerned Br. (Payee Br.)

Cr. Income A/C (Commission/Telex Charge) realised for the issued amount

Cr. Sundry deposit A/c. (VAT) which will be transferred to FAD H.O. Later on.

At the end of the day, the daily total of different columns of the TT Issued Register (B-30) are to be done and the authorised officer must see that Concerned figures are tallied / agreed with the relative figures of Clean Cash Book and General Ledger (B-04), Income Register (B-5), IBCA Register (B-45) and Daily SIBG Extract (F-35).

16. When a TT message is received over Telephone/TLX the Test Number should be decoded /verified by the authorised TT Test Key holders. If agreed, it should be entered into the TT Payable Register (B-33) and the following entries are to be passed:

Dr. SIBG A/C. (Issuing Br.)

Cr. T.T. Payable A/C

Dr. T.T. Payable A/C

Cr. Client’s A/c. /T.T., PO.

The beneficiary also will be intimated accordingly regarding receipt of the T.T. After Payment the Receipt of the T.T. Confirmatory advice (IBCA), must be posted in the T.T. Payable Register duly verified the amount, date and particulars etc. If the T.T. Confirmatory advice is not received, within reasonable time, the Issuing Br / Branches are to be pursued till receipt of the Confirmatory Advice (IBCA)

If the T.T. test is not agreed or in case of other discrepancies the amount will be kept in the T.T. Payable A/C and immediately be contacted over phone followed by a letter with the issuing Branch to settle the discrepancy at the earliest.

Separate vouchers in respect of each T.T. (issue or payment) shall have to be prepared by the branch.

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Payment of T.T.:

The daily total of T.T. Payable Register is to be done and the figures must be tallied with the relative figures of the SIBG Extract of the day.

17. When there is no account of the beneficiary with the payee branch, payment order shall have to be issued favoring beneficiary/beneficiary’s bank and to be dispatched immediately along with a forwarding letter under intimation to the Issuing Branch.

Manager/Authorized officials must ensure that all the T.T issued of the day have been dispatched/conveyed along with Confirmatory Advice on the same day to the payee branch and all the T.T. Confirmatory Advices (IBCA) for the TTs received and paid are duly entered in the TT Payable Register/IBCA Received Register.

18. Test-Key Apparatus part-I & part-II should be handled cautiously and maintained jointly by the Manager and 2nd Officer/In-Charge, General Banking, so that coding/de-coding may be accurate to avoid unnecessary correspondences and in case of big Branch it may be maintained by a nominated officer having permission from FAD, Head Office.

18.1 Issuing and Receiving of T.T message should be done at least by the 2nd Officer or In-Charge, General Banking Department of the Branch.

18.2 In case of incorrect Test, the matter should be brought to the notice of the Manager or 2nd Officer and the same has to be taken up with the issuing Branch immediately to ensure prompt service to the customers. Issuing Branch will take up the issue on priority basis so that correct test may be conveyed to the responding Branch without delay.

18.3 T.T. confirmatory (IBCA) shall have to be dispatched to the concerned payee Branch (s) on the same day for issuance of the T.T(s).

18.4 Daily SIBG statement shall have to be dispatched latest by the following day positively for reconciliation purpose.

18.5 The Branches should send their requisition for Test Key Apparatus Table ‘X’ as per pro-forma supplied by FAD, Head Office. In such requisition the Branch must mention the date of receipt of previous Table ‘X’ by the Branch and serial number used up to the date if submission /sending of fresh requisition, if it is not the first requisition for any particular Branch.

CHAPTER-XXX

WRITING OF TRANSFER SCROLL, CLEANCASH BOOK AND GENERAL LEDGER

1. The Bank maintains its business under double entry system where every debit has an equal amount of credit. Transactions in the Bank take place either in cash or through transfer instruments. Cash Receipts & Payment

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Issuance of T.T., PaymentOrder: (TT/PO)

Handling ofT.T. Test Keys

Introduction:

vouchers are recorded in the Cashier’s Receipt and Payment Register (B-7 & B-8) while transfer Receipt and transfer Payment Vouchers are recorded in the Transfer Scroll (B-6). The daily total of Cash Receipt & Payment and Transfer Scroll must tally with the total of Clean Cash Book and General Ledger (B-4) of the day.

2. Every transfer voucher irrespective of amount must be passed by two authorised officers. Before posting in the Transfer Scroll, the writer must ensure that voucher is passed by the authorised officer with the stamp “TRANSFER”

2.1 The Transfer scroll is a book where all transfer transactions are recorded systematically under the columns Debit and Credit. The voucher are serially numbered under the signature of the scroll writer with the TRANSFER RECEIVED or TRANSFER PAID date seals for credit and debit voucher respectively. The daily total of both debit and credit amount of the vouchers must tally with other. The daily total of debit cash voucher and that of transfer voucher (number & amount) must be equal to the total number of voucher and amount of payment side of Clean Cash Book and General Ledger (B-4) and similarly the day’s total of credit cash voucher and that of Transfer Scroll (number and amount) must be equal to the total of vouchers and amount of Receipt side of the Clean Cash Book and General Ledger. Bank’s summarized cash transactions and positions are also recorded in the transfer scroll after recording no-cash transaction.

3. The Clean Cash Book & General Ledger is the abstract of each day’s transaction classified under the General Ledger headings. It is the prime book of recording of transactions in a systematic manner. In some Banks, Clean Cash Book, General Ledger and General Ledger Abstract are separately maintained. In our Bank instead of maintaining above three books one book named Clean Cash Book and General Ledger (B-4) are maintained. These books are written daily and compiled from the supplementary sheets. Heads of Accounts related to Capital and Liabilities have been arranged in the left side and Property and Assets have been arranged in the right side. The book reflects the transactions of all category of Heads of Accounts and also closing balances of all heads of accounts including income & expenditures, Grand total of liabilities side must be same with that of Assets side. Since the Clean Cash Book & General Ledger are the most important books of the Bank. The book reflects the daily position of income and expenditure, assets and liabilities of the Bank. This book is, therefore, balanced daily, checked by the authorised Official and verified by the Branch Incumbent /In-Charge.

4. Branch will not create any head of account in the Clean Cash Book and General Ledger without any written approval from Head Office.

5. LIABILITIES:

Deposits:

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Maintenance ofTransfer Scroll:

Clean CashBook & General Ledger:

Caution:

Heads ofAccounts inClean CashBook andGeneral Ledger:

Al-Wadeeah Current DepositsMudaraba Savings DepositsMudaraba Savings Deposit (RDS)Mudaraba Special Notice DepositsMudaraba Term DepositsProfit-Payable A/C.Sundry DepositsNon-Resident Taka DepositConvertible Taka A/C.Mudaraba Hajj Savings A/C.Mudaraba Savings BondMudaraba Special Savings (Pension ) SchemeMudaraba Monthly Profit Deposit Scheme (MPDR)Mudaraba Mohur Saving Account (MMS)

Sub Total

BILLS PAYABLE:

D.D. PayableT.T. PayableP.O. Payable

Sub Total

Total Deposit (Excluding F.C. Deposit)

F.C. Deposit Accounts:

Total Deposit (Including F.C)

OTHERS LIABILITIES

F.C. ChargesAdjusting A/C Credit Balance

Profit Receivable A/C.F.C. Held against B.B. L/CClearing AdjustmentProfit/Rent Suspense AccountCompensation Suspense AccountTransfer Delivery Adjustment A/CRent Receivable Account

BRANCHES ACCOUNTS:

SIB General A/C (Computer)

Sub-Total

LIABILITIES AS PER CONTRA:

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Outward Bills for Collection Inward Bills for CollectionOutward Foreign Bills for CollectionInward Foreign Bills for Collection Inland L/CImport L/C (General)Back to Back L/C (Foreign)Back to Back L/C (Inland)Back to Back Bills (Foreign)Back to Back Bills (Inland)Letter of Guarantee

INCOME A/C:GRAND TOTAL:

ASSETS:

CASH & BANK BALANCES:

Cash in Hand Foreign Currency in HandBalance with Bangladesh BankBalance with Sonali BankBangladesh Bank F.C. Clearing A/CBalance with other Banks:a) In Bangladeshb) Outside Bangladesh

Investments:

Bai-Murabaha (General)Bai-Murabaha (Post-Import)Bai-MuazzalBai-Muazzal (MDS)Hire Purchase under S. MeelkMudarabaMusharaka (General)Musharaka (Preshipment)Bai-SalamQuard Against TDRQuard-e-Hasana (General)Bai-Muazzal (Staff)H.P.S.M. (Staff)Quard against P.F. (Staff)Quard-e-Hasana B.F. (Staff)Quard-e-Hasana (General)(Staff)

Sub-Total: Staff InvestmentTotal of General Investment.

Inland Bills PurchasedFBN & FBP:Bai-Mura Bill of Exchange (Gen)

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Bai-Murabaha Import BillsBai-Muazzal B.B. BillsForeign Bill NegotiatedFCDPSub-Total of Foreign Exchange InvestmentTOTAL INVESTMENT:

Furniture, Fixture & Library.PREMISES ACCOUNT:

OTHERS ASSETS:

Suspense AccountD.D. Paid without AdviceAdjustment A/C Debit BalanceStock of Stationery in HandStamps in HandAdvance DepositXPB Premium PaidF.C Funds PurchasedAdvance Rent

Clearing AdjustmentTransfer Delivery Adjustment A/CBRANCHES ACCOUNTS:SIB General A/C (Computer)Sub-Total

ASSETS AS PER CONTRA:Outward Bills LodgedInward Bills LodgedOutward Foreign Bills LodgedInward Foreign Bills LodgedInland L/CImport L/C (General)Back to Back L/C (Foreign)Back to Back L/C (Inland)Back to Back Bills (Foreign)Back to Back Bills (Inland)Letter of Guarantee

EXPENDITURE A/C:GRAND TOTAL:

CHAPTER-XXXI

INCOME, EXPENDITURE, SUNDRY,SUSPENSE AND COMPENSATION ACCOUNTS

1. Every gain is income and Income A/c always shows a credit balance and hence it is shown as a liability. Income A/c appears in Statement of Affairs as Liabilities. Income earned by a Bank is payable to the owner and

1

Income Account

depositors of the bank. As payables are liabilities hence income is a liability of the bank towards its owners. In other words it is an internal liability. When any debit to Income A/c is warranted for rectification/ reversal of the entry the same must be under the joint signature by the branch incumbent & the second officer of the branch.

All income earned, accrued and accounted for into income account is credited to this account. (Head wise duly recorded in Income and Expenditure Registers (B-05).

a. Investment income from investment made under different modes,

b. Commission & Exchange earned out of banking services rendered,

c. Gain due to disposal of any Assets at a price higher than its written down

book value.

d. Other Income (Other than commission & exchange) duly verified with concerned register (DD/TT/PO/IBC/OBC/Bills/Guarantee etc.) and other Records and recorded in the Income and Expenditure Registers of the bank under respective sub-head.

All income earned by the Bank is accounted for on daily basis in the Income & Expenditure Register of the Bank in the respective sub-heads. The format of the Income & Expenditure may be seen for details.

2. Expenditure A/c always shows a debit balance; hence, it is shown as an asset. Expenditure incurred by a bank for earning the income is to be borne by the owners. In other words, owners owe this amount to the organization and who will recover the amount of expenditure from the owners. Since receivables are asset, hence Expenditure is an asset.

2.1 As it means, it is the head of account where the expenditure of the Bank as per break-up provided in the sub-heads of Income & Expenditure Register mentioned above is accounted for to debit of the respective sub-head.

2.2 The sum of the both Income & Expenditure is reflected in the Clean Cash Book and General Ledger as Income A/c balance and Expenditure A/c balance respectively. At the year-end, the balances of both the accounts become nil due to transferring the balances to profit & loss A/c of the Bank at Head Office.

2.3 Similar to the income Account, every debit to the Expenditure A/c under different sub-heads must be under the joint signatures of the Branch Incumbent and other authorised officer duly recorded in Income and Expenditure Registers (B-05)

3. Sundry Deposit Account:

3.1 There are occasions when amounts received by the Bank cannot be credited to the relative head of accounts for certain reasons. In order to

1

Expenditure A/c:

Necessity:

overcome the above situation bank is required to keep such type of amounts in Sundry Deposit Account pending disbursement of the same to the proper Heads of Accounts

3.2 It is a transitory liability account or in other words a sundry creditors account with a view to maintain various types of receipts which can not be categorized in any specific, Head of Account of the Clean Cash Book and General Ledger for some reason or others. The account is reflected in the liability side of Clean Cash Book and General Ledger, details of which is maintained in a subsidiary Register called Sundry Deposit Accounts Register (B-3). The receipt entries of the accounts are reversed on a subsequent date on identification of the error or fulfillment of the specific condition on which the account is (kept duly marking contra date (S) of the entry/entries for both the credit and debit entries. Every reversal entry of sundry deposit A/c must be with the prior approval of the Branch Incumbent.

3.3 The followings are the sub-heads of sundry deposit Accounts:

- Sundry Creditors- Security Money Payable (Suppliers)- Locker Key Security Deposit- Staff Security Deposit- Levy Payable - Outstanding expenses- Marginal Deposit:- Bank Guarantee (BG)- Foreign, Letter of Credit (L/C)- Inland letter of credit (ILC)- Remittance- Baim HDS supervision commission - Baim Risk Fund (HDS)- Compensation Realizable- Compensation Realized- Tax on Profit- Income Tax Officer and Staff.- Income Tax on suppliers.- Income Tax on House Rent- Govt. Tax on Advertisement.

- Security Deposit Money.- 10% Advance Income Tax.- Right share money collection- Excise Duty- Sale proceeds of share.- Sale proceeds of book- Income Tax on Dividend- Income Tax on Audit fees.- Income Tax on legal charges.- Income Tax on Auction- VAT on Director Fees.- VAT on L/C commission etc.

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Sub-Head of Accounts:

3.4 Transaction in respect of above sub-heads shall be maintained under Sundry

Deposit Account in the Clean Cash Book & General Ledger (B-04).

The entry-wise transactions as per above sub-heads shall, however, bemaintained in B-4 in separate folios.

While debiting any amount from the above account, the date of contra credit

must be found out and marked off. In case, there is no contra credit entry, no

debit entry shall be raised.

Under no circumstances, entry shall be partially reversed. When occasion arises for partial adjustment arises, the entire entry shall be reversed, on lodgment afresh for partial amount.

The account shall be balanced monthly.

At the beginning of each year all outstanding entries shall be brought forward with full details under authentication.

3.5 Maintenance of all sub-head accounts of Sundry Deposit A/c. except Sundry Creditors are self-explanatory. Nevertheless, it is observes that there always exists confusion regarding placement of amounts in Sundry Creditors Account as well as disposal of the same. Consequently huge entries are piled up in the aforesaid account and due care is not taken for disposal.

3.5.1 It is justifiable to pay profit on the deposit of Mudaraba A/c. which was kept in the Sundry Deposit A/c. due to negligence of the Bank.

3.5.2 Branches shall strictly observe the following procedures in placing fund in Sundry Creditors Account and disposing off the same:

3.5.3A. Type of funds to be placed in Sundry Creditors Account

Method of adjustment

i) Cash/ Cheque deposited by A/c. holder with Wrong/incomplete title of A/c Account Number.

On receipt of claim with counterfoil of deposit the amount shall be credited to the Proper Account. Refund may also be made by Pay

1

Procedure of Maintenance:

SpecificInstruction forMaintenance ofSundry DepositAccount:SundryCreditors:

Order (crossed A/c. payee) only if the depositor has no Account. In case of any confusion while disposing off the outstanding entry utmost care should be taken to settle the issue.

ii) Excess Cash found in Cash section after daily balancing of cash.

On receipt of claim from the depositor with proof shall be paid to the claimant after verifying genuineness to the credit of his A/c. or through Payment Order. Amounts remaining unclaimed for more than three years shall be remitted to FAD.

iii) Amount found excess in the Clearing house

Must be determined from which Bank excess found and shall be paid accordingly through Pay-Order on receipt of claim.

iv) Remittance received from Different Branches with Wrong title/ Account No./ Proper Account

Remitting Branch must be immediately contacted mentioning the irregularities and. Seeking details of disposal. Accordingly entry shall be disposed off.

v) Staff dues pending Administrative decision.

Shall be paid off as per decision of Head Office.

vi) Any other misc. cause Shall be paid off as and when the cause of action is met.

3.5.4 Any amount in Sundry Creditors Account shall be placed under the signature of the Manager. The Manager while placing any fund in sundry creditors specially the depositor’s money due to discrepancies in account number & title shall invariably try to regularize the discrepancies instantly.

3.5.5 Debit vouchers on Sundry Creditors Account must be signed by the Manager. Vouchers and Registers thereof should be preserved properly for verification by the auditors.

3.5.6 No entry shall remain unattended for more than 7 (seven) days. Special care should be taken by the Manager/GB in-charge to trace-out the depositors/concerned party/ parties till disposal of the outstanding entry/entries.

3.5.7 If any entry remains unclaimed for 3 years or more inspire of taking action as suggested above, the same shall be marked “ unclaimed” in Red Ink under the signature of the Manager and extra pre-caution shall be taken before disbursement of claim thereon.

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3.5.8 At the end of each month, the A/c shall be balanced by taking the duplicate outstanding entry/entries into account and statement shall be prepared in duplicate form and be sent to Head Office retaining a copy in the file for reference.

4. There might be occasions when charging of expenditure (both revenue/capital) become necessary but cannot be made with due approval of the authority for want of maturity, supporting papers/documents in these cases, the expenditure may be incurred to the debit of suspense A/c consisting of the following sub-heads. Every debit to the suspense A/c must be with the approval of the Branch Incumbent /Zonal Head / In-charge, FAD, Head of Office etc. as the case may be.

4.1 The suspense A/C debit vouchers are to be passed by the Branch incumbent jointly with any other authorised Officer duly posted in Suspense A/c Register (B-3). On reversal of the entry in due course to the debit of appropriate head(s) of Account(s), the suspense is/are to be credited to set off the original debit entry by marking contra date(s) of the relative entry/entries. Every effort should be made by the Branch Incumbent to reverse the entry/entries within 1 (one) month from the date of originating.

4.2 Suspense Account shall consist of the following sub-heads: -

- Sundry Debtors- Advance against Postage and Telegram (P & T)- Advance against court fee.

- Advance against TA/DA.- Advance Payment of Income Tax (Bank)- Accrued Income- Prepaid expensedAdvertisement and PublicityAnnual ReportAuditors FeesBooks & LibraryCalenderCMSChequebookDead StockDecorationHotel RentLegal FeesMDSMedical TreatmentP & TParty & Others. etc

4.3 Transactions in respect of above sub-head shall be maintained under Suspense A/c. In Clean Cash Book and General Ledger (B-4)

1

SuspenseAccount:

4.4 It is a transitory asset account, in other word sundry debtors account maintaining the records of various types of Payments made for various purposes which can not be instantly accounted for into any particular Head of accounts at the time of payment. The sum total (Summation) of all the sub-Heads in the Suspense A/C Register (B-3) is the debit balance of the Suspense A/C shown in the Clean Cash Book and General Ledger.

4.5 Entry-wise transactions as per above sub-head shall, however, be maintained in separate folio(s), while adjusting any entry, date of contra debit, thereof, and must be marked off. In case there is no original debit no credit entry shall take place.

4.6 Under no circumstances partial adjustment of any entry shall be made excepting in Excise Duty Recoverable Account. When any such occasion shall arise, the entire amount shall have to be adjusted by creating fresh entry for partial outstanding amount.

4.7 Suspense Account debit voucher must not be posted & passed unless it is signed by the Manager jointly with the concerned departmental-in-charge. For any irregular operation, Manager shall be held personally responsible.

4.8 The account shall be balanced monthly by taking the outstanding entry/entries (sub-head wise) into Account. A monthly statement of outstanding entry/entries should be sent to FAD, Head Office, Dhaka retainting a copy for office record.

4.9 At the end of each year all outstanding entries with detail shall be brought forward in a new folio/ledger/computer under authentication of the Authorised officer.

5.

1

Special notes regardingOperation of SuspenseAccount.

5.1 Sundry Debtors may be created for the following reasons and adjustment may be made as per instruction given there against.

Reasons Adjustmenti) To facilitate travel of an employee on office order when 75% against approximately TA/DA may be paid to the debit of suspense A/C under sub-head TA/DA.

Within 30 (thirty) days after completion of the Journey by approved TA/DA bills from the competent authority.

ii) To facilitate incurring authorised expenses/Payment and Petty cash on being satisfied about the genuineness & justification of requirement of official purpose.

Must be adjusted to the debit of proper head of account on obtaining approval immediately after incurring the expenses/payment.

iii) To meet the difference in clearing due to excess claim made by the other Banks inadvertently which could not be detected before resetting of the house. But before remaining entry into suspense A/C the concerned bank should be contacted about the discrepancy and the payment.

The cause of excess payment must be found out with due explanation/clarification from the officials at fault, the entry must be adjusted on the following day on obtaining pay order from the concerned Bank who obtained excess payment.

iv) To meet any other Banking requirements.

Must be adjusted immediately within a reasonable time.

5.1.1 Under no circumstances, Suspense A/C – Sundry debtors entry to be created for personal reasons.

5.1.2 To facilitate authorised officials expenses/payment to the debit of suspense A/C may/shall be made in the name of departmental-in-charge and P.A. to Chairman, MD, DMD,

5.1.3 No entry in the suspense A/C (Sundry debtors’) shall remain outstanding for more than 30 days without any valid reason.

5.1.4 Managers for branches & Chief Financial Officer FAD shall scrutinize the outstanding entries frequently and arrange for immediate adjustment including realisation to the debit of salary accounts, if required.

5.1.5 At the end of each month the account shall be balanced by jotting down the outstanding entries in details in the prescribed form in duplicate, the first copy of which shall be sent to FAD Head Office as statement and the rest shall be retained in file.

5.2 Fortnightly/Monthly requirement for Postage & Telegram/Petty Cash shall be paid to the dispatcher/cashier/Authorize officer who shall maintain the account in impress system and shall replenish cash requirement by getting expenses voucher passed as per Dispatch Register (B-17) / Petty Cash

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Sundry Debtors:

Advance Against P& T/Petty Cash

Register (B-43). The account shall, however, be checked by the Authorised officer daily and by the Manager to ensure correctness and balance of the transaction and at least once in a month of the same. Petty cash expense/voucher must however, be debited to relative Head of Expenditure Account.

5.2.1 Other sub-head of accounts are self-explanatory and shall be operated as per instruction of Head Office from time to time.

5.3 The amount of profit against any particular investment deal under Murabaha or Bai-Muajjal mode is/are accounted for but not yet accrued on the basis of accrual concept of Generally Accepted Accounting Principle (GAAP) or international accounting Standards or according ‘to the standards formulated by Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) for which the respective investment Account is to be debited by crediting the same to profit Receivable Account. The amount of profit when accrued in the profit receivable Account is proportionately debited and the profit on investment income Account is credited on monthly basis at the time of annual closing as the case may be.

5.3.1 The entry wise records of the Accounts with full particulars of the entry/entries i.e. deal number, name of the concerned investment client, contra date(s) etc. shall be maintained in Sundry Deposits Register.

5.4 It is an account where the profit/rent amount is accrued against any classified investment deal; the profit/rent of such deal shall be credited to Profit Suspense Account instead of Investment Income Account till the de-classification of the Account by Bangladesh Bank. On realization of the Banks dues/against a classified deal, the same should be given to the notice of Head office for de-classification of the concerned investment account through Bangladesh Bank.

5.4.1 The entry wise records of the Accounts with full particulars of the entry/entries i.e. deal number, name of the concerned investment client, contra date(s) etc. shall be maintained in Sundry Deposits Register.

5.5 It is a sub-head of Sundry Deposit A/c. Any accrued compensation amount against overdue Investment deal under Bai-Muazzal and Murabaha mode but not classified will be kept in this Head of Account.

5.5.1 The entry wise record of the Accounts with full particulars of the entry/i.e. deal number, name of the concerned investment client, contra date(s) etc. Shall be maintained in Sundry Deposits Register.

5.5.2 If any amount is realizable or recovered against either Compensation Suspense A/c or Compensation Realizable Account is transferred to Compensation Realised A/c. (another sub-head of Sundry Deposit A/c), the entire balance of the aforesaid A/c will be transferred to Head Office (FAD) at the end of each year except Compensation Suspense & Profit Suspense A/c.

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ProfitReceivable A/C:

Profit/RentSuspense A/c.

CompensationRealizable/Realized A/C:

CompensationSuspense A/C:

5.6 It is the Account where the compensation amount accrued for against any classified and overdue Investment deal under Bai-Muajjal and Bai- Murabaha Mode.

CHAPTER-XXXII

INTER BRANCH TRANSACTION AND RECONCILIATION

1. Inter branch transaction as well as transaction between Head Office & branches (and vice versa) of Social Investment Bank Ltd, are routed through Social Investment Bank General Account (in short, SIB General A/C). The types of transactions that come within the purview of S.I.B. General A/C may be summarized as under: -

1

What is SIBG?

Code No. Transaction Items Code No. Transaction Items

01. Cash remittance08. Cost of F.C. & LC.02. D.D. Issued 09. Transport bills03. M.T. issued (Not yet 10. F.B.P. introduced)04. T.T. issued 11. F.C.D.P.05. Bills 12. Cheques returned in clearing06. O.B.C. 13. Remittance07. Clearing 14. Sundries

15. ATM2. Each & every inter branch transaction including transaction between Head

Office & Branches and vice versa is to be advised through Inter Branch Debit Advice (IBDA) or Inter Branch Credit Advice (IBCA) duly recorded

in IBCA/IBDA issued and Received Register (B-45). In case of debit entry of SIB General A/C, IBDA is to be issued and in case of credit entry, IBCA is to be issued. Inter Branch Debit Advice and Inter Branch

Credit Advices are issued in quadruplicate. The first & 2nd copies to be dispatched to the related branch on which the entry has been originated, the third copy to be submitted to Reconciliation Deptt. Of FAD, H.O. along with the SIBG statement and the fourth copy to be treated as voucher at the branch.

3. The branch or Head Office which initiates debit/credit entry first is called the originating branch and the entry is named as originating entry. If the entry is a debit entry is called originating debit entry & if it is credit one the same is called originating credit entry.

3.1 The branch or Head Office on which the originating entry is initiated is called the responding branch. On receipt of the IBDA/IBCA issued by the originating branch, the responding branch shall respond it & treat the original copy as voucher of the day and the 2nd (Duplicate) copy to be submitted to Reconciliation Deptt. Of FAD, H.O. along with the SIBG statement. This entry of the responding branch is called responding entry.

In case the entry is debit then it is responding credit entry & if the entry is credit it is name as responding debit entry.

4. For some reason or others an entry may be required to be reverse. Such entry is called reversal entry. If an originating entry is reversed by the originating branch it is called Originating Reversal Entry. When a responding entry is reversed by the responding branch then it is termed as Responding Reversal Entry.

5. The transactions of Islami Bank General A/C (Computer) shall have to be reported to Reconciliation Deptt. Of FAD, HO, daily through S.I.B. General A/c Statement in F-35 & F-35A. For the purpose the transactions of S.I.B. General A/C (Computer) are to be divided into the following four groups:-

a) Originating debit b) Origination credit

c) Responding debit d) Responding credit

1

How to Advice?

Originating entry & Responding entry:

Reversal entry

Reporting to Head Office:

5.1 While preparing the statement the originating debit entries followed by the originating credit entries shall have to be reported in F-35 and the responding debits followed by the responding credits are to be reported in F=35A.

5.2 In case there is any reversal entry, the originating reversal debit entries and originating reversal credit entries shall have to be reported in F-35 and the responding reversal debit entries followed by the responding reversal credit entries shall have to be reported in F-35A there-after. While reporting the transactions in the aforesaid order, sub-total of each group (as stated above) are to be made and all the columns of the statement are to be filled in accurately.

5.3 In the right hand topside of F-35, a summary of the total transactions of the day shall be made and in all circumstances the grand total of debit summations & credit summations shall be equal. While incorporating the closing balance in the upper right hand box of the statement in order to arrive grand total the closing debit balance is to be written in the credit column & closing credit balance in debit column to equalize both the sides.

5.4 The total of daily transactions of F-35 & 35A shall agree with the daily total of IBCA/IBDA Issued Register (B-45) and IBCA/IBDA Received Register (B-45).

5.5 SIBG A/C. statement shall have to be prepared by entering all SIBG A/c. data of the day into the computer under a data entry programme provided by FAD, H. O. (as per F-35 & F-35AB) at the end of each working day and taking 2 computer print out, shall be sent to Reconciliation Deptt. of FAD, H .O. enclosing therewith the 3rd copies of originating IBDA/IBCA and 2nd copies of responding IBDA/IBCA serially & the other copy is to be kept as office copy.

5.6 The statements of SIB General A/C (Computer) shall have to be submitted to Reconciliation Deptt. Of FAD, H.O, daily through SIB. General A/C statement if in any day, there is no transaction has taken place in SIBG A/C. (computer), in that case a Nil SIBG A/c. statement must be submitted giving consecutive serial Number. At the close of business of the last day of the month, branches shall have to send entire data of SIBG A/c. of the month to Reconciliation Deptt. through Email along with a printout (hard copy) of all entry after properly signing by the Authorised Officer. The daily SIBG statements from the Branches are also sent to Reconciliation Deptt FAD, HO through E-mail along with a printout (hard copy) of all entry after properly signing by the Authorized Officer

5.7 It must be ensured by the Branch that the closing balance in SIBG A/c. Statement tally with the Clean Cash Book and General Ledger under SIBG A/c. Head.

6. Reconciliation is nothing but the work done at Head Office, Reconciliation, Financial Administration Division (FAD) to check-up whether all entries originated by branch are being responded duly by the contra branch and

1

Reconciliation

also to check whether the entries responded by a branch are actually originated by the concerned branch comparing the Date of origination entry, Branch code, Advice No (IBCA/IBDA), Transaction code and the Amount through computer.

7. On receipt of the monthly E-mail containing total data of the SIB. General A/c. (along with computer printout) from branches (including Financial Administration Division & International Department Head Office), Reconciliation Deptt. Of Head Office scrutinizes the entries in SIBG A/c. statement with the enclosed IBDA/IBCA and entries in E-Mail with printout of all entries of the month if is found correct, post by enter the same into the computer (i.e. data pool in the server). Then at the end of each month after checking/comparing of monthly statement of Affairs of each Branches/Office the originating & responding entries are matched through a computerized programme named “PCBANK2000 Reconciliation Module”. Before matching monthly closing balance of SIBG A/c. of all branches also enter into the Computer program.

8. While doing so, if it is found that some entries originated by other branch are not responded as per branch statement of responding entries, the same is treated as unrecognized originating to be responded entries raised by other branches. It may also be found that some entries responded by branch as per branch statement of responding entries, which might not originated by other branches on it or not responded the same properly, which are treated as unrecognized responding entries raised by the branch.

Social Investment Bank Ltd ..................................... Branch

Statement No________________ Generation Date :30/06/2007

Ibta Extract Report Generation Time :6:54:09 PM

Debit Balance Credit Balance

Opening Balance 0.00 0.00

Originating Balance 0.00 0.00

1

How toReconcile?

Un-reconciled Entries

Responding Balance 0.00 0.00

Closing Balance 0.00 0.00

0.00 0.00

_______________ ________________Authorised Signature Authorised Signature

Social Investment Bank Ltd. .................................. Branch Generation Date :dd/mm/yy Generation Time :h:m:s pm/am Branch Originating Report

As On : dd/mm/yy

Originating Region : 0001 Branch : 0009 Babu Bazar Branch

Responding Branch Transaction DebitCreditTrans Status

1

Advice NoAmount Code Amount

0002 Principal Branch 25098 014 0.00 0.00 Posted

Checked By Authorised Signature Authorised Signature

Social Investment Bank Ltd. Generation Date: dd/mm/yy ...................................... Branch Generation Time: hh:mm:ss Branch Responding Report

As On: dd/mm/yy

Responding Region: Branch:

Originating BranchAdvice No Transaction

1

Originating DebitCredit

DateCode

AmountAmountStatus

0002 Principal Branch 221888 007 00.00.00.00 0.00 Posted

Total Amount : 0.00 0.00

ked By Authorised Signature Authorised Signature

F-35DAILY SIB GENERAL ACCOUNT STATEMENT

Statement No___________

STATEMENT OF ORIGINATING ENTRIES

Name of Originating Branch_______________

Originating Branch Code__________________

Date_____________________

1

PARTICULARS Dr. Cr.Opening BalanceOriginating EntriesResponding EntriesClosing BalanceGRAND TOTAL

RespondingBranchCode

Name ofResponding

Branch

AdviceNumber

Tr.Code

Particulars Debit Credit

Total Tk.

N.B. In case of no transaction a NIL statement be sent invariably.

For Head Office Use Only

Computer Entry: From………………to………………… Prepared by Checked bySVP/VP/AVP/Manager

Entry posted by……………………..

F-35A SIB GENERAL ACCOUNT

Statement No___________

STATEMENT OF RESPONDING ENTRIES

Name of Responding Branch_______________

Responding Branch Code__________________

Date_____________________

1

Originating BranchCode

Name ofOriginating

Branch

AdviceNumber

Tr.Code

Date ofOriginating

Entry

Debit Credit

N.B. In case of no transaction a NIL statement be sent invariably.

For Head Office Use Only

Computer Entry: From………………to………………… Prepared by Checked bySVP/VP/AVP/Manager

ORIGINAL F-20 For Responding Branch

Social Investment Bank Ltd.FROM INTER BRANCH CREDIT ADVICE TO

BR.

CODE NO. CODE NO.

DATE OF ISSUE IBDA NO:

1

TRANS. CODE DEBIT S.I. B. GENERAL ACCOUNT_______________________________BRANCH

01. Cash Remittance02. DD Issuer03. M.T. Issued04. T.T. Issued05. Bills06. OBC07. Clearing08. Cost of F.C. & L.C09. Transport bills10. F.B.P.11. F.C.D.P.12. Cheques rtd. In cig.13. Remittance14. Sundries15. ATM

INSTRUMENT NO PARTICULARS TAKA PS

TOTAL TK.

Taka (In Words)_____________________________________________________________Only

Prepared By AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & NO.

CREDIT S. I. B GENERAL ACCOUNT____________________________BR. AMOUNT & PARTICULARS AS ABOVE

Responding Date

C O N T R A _______________ AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & No.

N. B. No Advice should remain un-responded beyond 2 (two) days from the date of receipt.

DUPLICAT F-20

H.O. Copy for Responding Branch

Social Investment Bank Ltd.FROM INTER BRANCH CREDIT ADVICE TO

BR.

CODE NO. CODE NO.

DATE OF ISSUE IBDA NO:

1

TRANS. CODE DEBIT S.I. B. GENERAL ACCOUNT_______________________________BRANCH

01. Cash Remittance02. DD Issuer03. M.T. Issued04. T.T. Issued05. Bills06. OBC07. Clearing08. Cost of F.C. & L.C09. Transport bills10. F.B.P.11. F.C.D.P.12. Cheques rtd. In cig.13. Remittance14. Sundries15. ATM

INSTRUMENT NO PARTICULARS TAKA PS

TOTAL TK.

Taka (In Words)_____________________________________________________________Only

Prepared By AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & NO.

CREDIT S. I. B GENERAL ACCOUNT____________________________BR. AMOUNT & PARTICULARS AS ABOVE

Responding Date

C O N T R A ________________AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & No.

N. B. No Advice should remain un-responded beyond 2 (two) days from the date of receipt. TRIPLICATE

F-20

H.O. Copy for Responding Branch

Social Investment Bank Ltd.FROM INTER BRANCH CREDIT ADVICE TO BR.

CODE NO. CODE NO.

DATE OF ISSUE IBDA NO:

1

TRANS. CODE DEBIT S.I. B. GENERAL ACCOUNT_______________________________BRANCH

01. Cash Remittance02. DD Issuer03. M.T. Issued04. T.T. Issued05. Bills06. OBC07. Clearing08. Cost of F.C. & L.C09. Transport bills10. F.B.P.11. F.C.D.P.12. Cheques rtd. In cig.13. Remittance14. Sundries15. ATM

INSTRUMENT NO PARTICULARS TAKA PS

TOTAL TK.

Taka (In Words)_____________________________________________________________Only

Prepared By AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & NO.

CREDIT S. I. B GENERAL ACCOUNT____________________________BR. AMOUNT & PARTICULARS AS ABOVE

Responding Date

C O N T R A __________________ __AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & No.

N. B. No Advice should remain un-responded beyond 2 (two) days from the date of receipt.

QUADRUPLICATE F-20

H.O. Copy for Responding BranchSocial Investment Bank Ltd.

FROM INTER BRANCH CREDIT ADVICE TO BR.

CODE NO. CODE NO.

1

DATE OF ISSUE IBDA NO:

TRANS. CODE DEBIT S.I. B. GENERAL ACCOUNT_______________________________BRANCH

01. Cash Remittance02. DD Issuer03. M.T. Issued04. T.T. Issued05. Bills06. OBC07. Clearing08. Cost of F.C. & L.C09. Transport bills10. F.B.P.11. F.C.D.P.12. Cheques rtd. In cig.13. Remittance14. Sundries15. ATM

INSTRUMENT NO PARTICULARS TAKA PS

TOTAL TK.

Taka (In Words)_____________________________________________________________Only

Prepared By AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & NO.

CREDIT S. I. B GENERAL ACCOUNT____________________________BR. AMOUNT & PARTICULARS AS ABOVE

Responding Date

C O N T R A _______________ AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & No.

N. B. No Advice should remain un-responded beyond 2 (two) days from the date of receipt.

ORIGINAL F-21 For Responding Branch

Social Investment Bank Ltd.FROM INTER BRANCH DEBIT ADVICE TO

BR.

CODE NO. CODE NO.

1

DATE OF ISSUE IBDA NO:

TRANS. CODE DEBIT S.I. B. GENERAL ACCOUNT_______________________________BRANCH

01. Cash Remittance02. DD Issuer03. M.T. Issued04. T.T. Issued05. Bills06. OBC07. Clearing08. Cost of F.C. & L.C09. Transport bills10. F.B.P.11. F.C.D.P.12. Cheques rtd. In cig.13. Remittance14. Sundries15. ATM

INSTRUMENT NO PARTICULARS TAKA PS

TOTAL TK.

Taka (In Words)_____________________________________________________________Only

Prepared By AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & NO.

CREDIT S. I. B GENERAL ACCOUNT____________________________BR. AMOUNT & PARTICULARS AS ABOVE

Responding Date

C O N T R A _______________________ AUTHORISED SIGNATURE & No. HORISED SIGNATURE & No.

N. B. No Advice should remain un-responded beyond 2 (two) days from the date of receipt.

DUPLICAT F-21

H.O. Copy for Responding Branch

Social Investment Bank Ltd.FROM INTER BRANCH DEBIT ADVICE TO

BR.

1

CODE NO. CODE NO.

DATE OF ISSUE IBDA NO:

TRANS. CODE DEBIT S. I. B. GENERAL ACCOUNT_______________________________BRANCH

01. Cash Remittance02. DD Issuer03. M.T. Issued04. T.T. Issued05. Bills06. OBC07. Clearing08. Cost of F.C. & L.C09. Transport bills10. F.B.P.11. F.C.D.P.12. Cheques rtd. In cig.13. Remittance14. Sundries15. ATM

INSTRUMENT NO PARTICULARS TAKA PS

TOTAL TK.

Taka (In Words)_____________________________________________________________Only

Prepared By AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & NO.

CREDIT S. I. B GENERAL ACCOUNT____________________________BR. AMOUNT & PARTICULARS AS ABOVE

Responding Date

C O N T R A _______________ AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & No.

N. B. No Advice should remain un-responded beyond 2 (two) days from the date of receipt.

TRIPLICATE F-21

H.O. Copy for Responding Branch

Social Investment Bank Ltd.

1

FROM INTER BRANCH DEBIT ADVICE TO BR.

CODE NO. CODE NO.

DATE OF ISSUE IBDA NO:

TRANS. CODE DEBIT S.I. B. GENERAL ACCOUNT_______________________________BRANCH

01. Cash Remittance02. DD Issuer03. M.T. Issued04. T.T. Issued05. Bills06. OBC07. Clearing08. Cost of F.C. & L.C09. Transport bills10. F.B.P.11. F.C.D.P.12. Cheques rtd. In cig.13. Remittance14. Sundries15. ATM

INSTRUMENT NO PARTICULARS TAKA PS

TOTAL TK.

Taka (In Words)_____________________________________________________________Only

Prepared By AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & No.

CREDIT S. I. B GENERAL ACCOUNT____________________________BR. AMOUNT & PARTICULARS AS ABOVE

Responding Date

C O N T R A _______________ AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & No.

N. B. No Advice should remain un-responded beyond 2 (two) days from the date of receipt.

QUADRUPLICATE F-21

H.O. Copy for Responding Branch Social Investment Bank Ltd.

1

FROM INTER BRANCH DEBIT ADVICE TO BR.

CODE NO. CODE NO.

DATE OF ISSUE IBDA NO:

TRANS. CODE DEBIT S.I. B. GENERAL ACCOUNT_______________________________BRANCH

01. Cash Remittance02. DD Issuer03. M.T. Issued04. T.T. Issued05. Bills06. OBC07. Clearing08. Cost of F.C. & L.C09. Transport bills10. F.B.P.11. F.C.D.P.12. Cheques rtd. In cig.13. Remittance14. Sundries15. ATM

INSTRUMENT NO PARTICULARS TAKA PS

TOTAL TK.

Taka (In Words)_____________________________________________________________Only

Prepared By AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & NO.

CREDIT S. I. B GENERAL ACCOUNT____________________________BR. AMOUNT & PARTICULARS AS ABOVE

Responding Date

C O N T R A ____________ AUTHORISED SIGNATURE & No. AUTHORISED SIGNATURE & No.

N. B. No Advice should remain un-responded beyond 2 (two) days from the date of receipt.

CHAPTER-XXXIII

1

ACCOUNT TERMINOLOGIES AND ACCOUNTINGPROCEDURES USED IN SOCIAL INVESTMENT BANK LTD.(SIBL)

1. Accounting is the language of business which spells out financial incidence of all transactions (Real or Contingent) in specific amount. As a Banker every one to acquaint himself with the basic knowledge of accounting some of those are shown below:

2. There are tow accounting systems of recording transactions – Single Entry System and Double Entry System.

2.1 Any System of book keeping which falls Short of double, entry is called Single Entry System of Bookkeeping.

2.2 The double entry System is System in which two-fold aspects of each and Every mercantile transaction in money or money worth is recorded. This System recognizes the fact that a transaction has a double-sided affair/effect. Here every debit must have its corresponding credit and vice Versa, Here one entry consists of debit to one or more accounts and another entry consists of credit to one or more accounts. However, total amount debited always equals the total amount credited. SIBL follows this System and at present it is compulsory according to The Company Act-1914 & Banking Companies Act-1991 (With amendments).

3. The order or sequence in which accounting procedures are maintained is known as Accounting Cycle, Accounting Cycle begins wits journalizing and ends’ with interpretation & analysis. the Accounting cycle can be described as under:

3.1 Recording the transactions in the subsidiary books (journals) or books of original entry.

3.2 Classifying data by posting them from subsidiary books the accounts or transferring the entries from the journals to the ledger.

3.3 Preparing a Trial Balance from the debit and credit balances of Ledger accounts closing the books and Preparation of final accounts.

3.4 Preparing the Trading Account, Profit & Loss Account and The Balance Sheet by taking into account of all subsequent adjustments.

3.5 Giving requisite information to the Management/ interested quarters by interpreting the performance and calculating accounting ratios.

4. Kinds of Accounts:

4.1 Accounts relating to persons/ firms/debtors/Creditors

4.2 Accounts relating to asset/ property/cash or possessions,

4.3 Accounts relating to gains, earning & income or expenses/expenditures or losses of business,

1

ElementaryKnowledge:

AccountingSystem

Single EntrySystem

Double Entry System

AccountingCycle:

Classifying:

Summarizing/Closing

Preparing financialStatements:

Interpreting andAnalyzing financialStatements:

Recording:

Personal Accounts:

Real Accounts:

Nominal Accounts:

Golden Rules:

5. Rules for debit and credit in double entry system is called Golden Rules which is stated below:

5.1 Personal Accounts: Debit the receiver of the benefit and credit the give of the benefit.

5.2 Debit what comes in and credit what goes out.

5.3 Nominal Accounts: Debit expenses and losses and credit gains and income.

5.4 In other words, remembering the Debit and Credit sides of an account, the increases and decreases as shown in the expanded accounting equation (Assets = Liabilities +Equity) can be summarized as follows:

Debit indicates: Credit indicates:Assets increase Assets decreaseLiabilities decrease Liabilities increaseEquity/Liability decrease Equity/Liability increaseIncome decrease income increaseExpenses increase Expenses decrease

6. The Branches of the Bank operate as independent accounting units. They submit Statements of Affairs of the Assets & Liabilities and other prescribed returns to Head Office, where these are consolidated in the form of a statement showing the Assets & Liabilities as a given data and income & Expenditure of the related period i.e. daily/weekly/monthly/yearly etc. of the Bank.

6.1 Instructions laid down in this chapter deal with the accounting system followed by Head Office and Branches of the Bank. It explains the various processes by which day transactions of the Bank are brought to account and finally compiled in the form of Bank‘s Balance Sheet (Statement of Affairs) and Profit and Loss Account.

6.2 The FAD (HO) should ensure due reflection in Final Accounts of: recation on Assets and Properties of the Bank.a) Provision on investments.b) Provision on investments.c) Unaccounted for Income & Expenditure of the related period.

7. Voucher is the evidence of transaction. The need for vouchers to authenticate individual transactions based on primary documents to support

1

AccountingUnits

Personal Accounts:

Property or RealAccounts:

Nominal Accounts:

Expanded AccountingEquation:

Balance-Sheet &PL Account:

Reflection ofDeprecation onAssets & Properties, provision against investments and adjustmentEntries (income & expenditure).

Voucher:

entries in the Bank’s Books of Accounts is self-evident. The documents, which provide the basis of transactions, do not, ordinarily, contain sufficient details to enable the Bank to make necessary entries in its books. A form of agreement, for example, obtained at the time of granting accommodation to a constituent dose not indicate the particular head of account to which the borrowings are to be allocated. Vouchers are, therefore, used as intermediaries between the basic documents such as the Demand promissory Note, Deed of Hypothecation, Memorandum of Sale or Purchase of goods etc. and the Books of Accounts. Vouchers may, as such, be defined as those instruments which are designed to meet the book-keeping requirements of the Bank and which, among other things, indicate which account is to be debited or credited in respect of transactions they purport to record.

7.1 No payment or receipt of cash and no transfer transaction will either effected or recorded in the Books of Accounts of the Bank unless there is a Voucher made to cover it.

7.2 Vouchers may be prepared by members of officials and the same must be checked and passed by tow Authorised Officials but in case of transfer and passing of Cheques there must be a Passing Power Schedule Vouchers will be written legibly without overwriting, erasing, fluiding etc. No Voucher with any alteration will be passed unless the official who originally signed it has authenticated the alteration(s).The name of account debited or credited will be clearly mentioned on the top of each voucher; all other necessary particulars relating to a transaction will be so given in the relative voucher as to clearly classify as well as identify the transaction in the accounts of the Bank.

7.3 All financial transactions of the Bank should be allocated to the appropriate heads of accounts, a list of which, together with the classification of Profit & Loss Accounts, appears at the end of this Chapter. No additions to the Heads of accounts as mentioned will be made without prior permission from FAD, Head Office shown at Para 37 & 38 of this chapter.

7.4 All vouchers should be bound Ledger/Head of Account wise (AWCA, MSD & Others) in voucher covers immediately after they are checked with the computer/supplementary sheet(s). All vouchers are to be entered in the voucher Register giving separate Totals for each category of vouchers. The number of debit and credit voucher covers and the checking officials must see that these are correct and agree with the numbers shown in the Transfer Scroll, Clean Cash Book & vouchers Register (B-49). All the vouchers are to be kept under the safe custody of an Authorised Officer. Subsequent movement of vouchers must be duly recorded in Document-Ex-custody Register (B-48).

7.5 i) It must be understood that the officer checking the General Ledge is responsible for compliance of these instructions. ii) After all checking is completed all vouchers bundles of the day will be

sealed in a Voucher Envelope and stored in locked steel trunk/Almirah in the Strong Room / Store Room.

1

AppropriateHeads:

Control andCustody:

Importance:

Procedures:

iii) If it is necessary to examine the vouchers at any time after they have been stored away, a requisition slip should be given to the officer concerned who will record on the paper of vouchers the date of examination and the name of the examiner. The officer is also responsible for ensuring that all vouchers taken out are returned back to him.

8. All cash Receipt vouchers shall be received by the Cashier, checked with cash tendered and entered in the Receiving Cashier’s Register. The Cashier will mention a Chronological Receiving Serial on the voucher and put his signature. He will then send the voucher along with the Receiving Cashier’s Register to the Authorised Official who will sing the voucher and shall put “CASH RECEIVED” stamp on it and deliver the voucher to the Department to which it relates. The Authorised Official will also sing counterfoil of Receipt voucher where necessary, put his initial against the entry in the Receiving Cashier’s Books and return the Book to the Cashier. At the end of the day, the total number of voucher(s) of Dummy Cash scroll and Receiving cashier Register will tally with each other.

9. The Authorised Official is responsible for custody and use ‘‘CASH RECEIVED’’ stamp. It must not be given to Receiving Cashier.

10. All transfer vouchers must be entered in the Transfer Book/Scroll (B-9). Before entry, it must be checked that the vouchers are properly passed and signed by two Authorised Officials with “TRANSFER” stamp. Transfer period and Transfer Received with date seal should be fixed on the transfer vouchers; Transfer serial number (Debit/Credit) should be mentioned on the vouchers under the initial of Transfer Book/Scroll writer.

11. Cheques for payments over the counter will be received against return of counterfoil Token of the cheque duly initialed by the receiver and recorded in token Register (B-20). After checking carefully the cheque number, date, amount, both in words and figures, the drawer’s authority and signature, stop payment instructions, if any, the endorsements and the available credit balance or drawing power, the ledger keeper/computer operator will post the cheques in the ledger/computer and after entering the folio/serial numbers under his initials on the cheques, submit these to the passing official will pass the cheques for payment along with the signature of other official, if needed and send them to Cash Department for payment. Where the cheque is returned unpaid that should be recorded the Token Register (B-20) and cheque Record and Return Register (B-50).

12. Supplementary Sheets will be prepared where necessary. Computer sheets must be checked by the authorised officials other than the computer officer at the end of all transactions of the day. The

1

Cash ReceiptVoucher

TransferVouchers:

SupplementarySheets &Summary:

Care on stamp:

ChequePayments:

checking officer must sing the supplementary/computer sheets and which is to be checked in addition to the writer/ operator.

12.1 First all vouchers will be sorted out Accounting Head wise. Then each bundle of vouchers will be so arranged folio-wise/account-wise that all credit vouchers are placed over all debit vouchers. Amount of credit and debit vouchers of each bundle will be separately jotted down in separate supplementary sheets/Computer Sheets. Debits and Credits of each sheet will be added in the debit & credit column of each sheet.

12.2 In the lower portion of each Supplementary Sheet/Computer Sheet a summary may be shown as follows:

Credit Debit

Number of vouchers (Trf):

Number of vouchers (Cash):

Total:

12.2.1 When writing of supplementary sheets is complete, a Supplementary Summary in a separate sheet is to be prepared. Totals of debit and credit of all sheets are to be jotted down for this purpose. Cash Received for the day will be taken as debit entry, while cash payment will be a credit entry. In this way supplementary summary/Transfer scroll debits and credits amount will agree with each other.

12.2.2 As a preventive measure against fraud, forgeries, manipulations,the Manager of the Branch shall use his Xeroxed eyes over the voucher of the previous working day at the beginning of the following working day, at first Item of his day’s functions.

13. Sub total of debit and Credit- entries shown on supplementary Sheets are posted head wise in Clean Cash Book and General Ledger (B-6). Summation to be done as per usual practice and if the total of the Liabilities equals to assets, the Clean Cash Book & General Ledger and transfer scroll book are treated to be balanced.

14. The account through which inter-branch and Branch-Head Office transactions and vice-versa of SIBL. Are being routed is termed as Islami Bank General Account (SIBG A/C). The types of transactions routed through the account may be enumerated as follows:

1. Cash Remittance 8.Cost of F. C. & I .C.2. D. D. issued 9. Transport Bills3. M. T. issued 10. F. B. P. N.

1

Head-wise Sorting of Voucher:

Summary:

Posting in CleanCash Book andGeneral Ledger:

SIB GEN. A/C:

4. T. T. issued 11. F. C. D. P5. Bills 12.Cheques returned in Clearing

6. OBC 13. Remittance 7. Clearing 14. Sundries

14.1 Whenever a transaction between inter-branch or Branch-Head Office Takes place, it is advised to the relevant branch or Head Office through Inter branch advices namely IBDA (F-21) i.e. inter-Branch Debit Advice or IBCA (F-20) i.e. inter Branch Credit Advice duly recorded in IBCA/IBDA issued and Received Register, (B-45)

14.2 The entry, which is initiated, first by a Branch or Head Office either By debiting or crediting other branch or Head Office is called the originating debit/credit entry as the case may be depending on the Original entry, IBDA or IBCA. The branch which initiate is called originating branch and the branch against which the entry is originated is called the responding branch.

14.2.1 Original inter-branch credit entry is supported by as IBCA while Original inter-branch debit entry is supported by as IBDA. All original debit and credit mentioned in the SIBG Account statement (F-35 & 35A) must be supported by copies of respective IBDA (s) and IBCA(s) which are to be enclosed with the statement.

14.2.2 Responding debit and credit entries are those inter-branch Entries which a branch creates by responding as IBCA or IBCA issued by another branch, Such entries are also mentioned in the in IBGA account statement for the purpose of reconciliation supporting by Duplicate Advices received from the Originating Branch. In the right hand topside of the said statement a summary Statement of total transactions of the day shall be made and in all circumstances the grand total of Debit Summations and Credit Summations shall be equal. The statement shall be prepared in duplicate and original thereof shell be sent to Reconciliation Department, Fad, Head Office, enclosing therewith the copies of IBCA/IBDA reporting the original debit entries at first, then original credit and lastly responding entries.

14.3 On receipt of the two copies of the IBDA or IBCA issued by the Originating Branch, the responding Branch uses the first copy as Voucher and takes it in their books of accounts. The duplicate copy is sent to Reconciliation Department, FAD, Head Office along with their Daily Statement of SIB General A/c. The entry that is responded by the responding Branch is called the Responding entry.

14.4 If a Branch for some reason or others reverses a transaction, it is called the reversal entry. When the Originating Branch reverses an original entry before it is responded by the responding Branch it is called original Reversal entry. When the responding branch

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IBDA & IBCA:

Original Entry,OriginatingBranch:

SupportingAdvices:

SIBG Statement:

Responding Entry:

Reversal Entry:

reverses a responding entry, it is called Responding Reversal Entry. The Reconciliation Department should make a close watch/study over the reversal entry/entries, in case of any doubt, correspondence be made till full satisfaction.

15. While preparing IBG Account statement special care must be taken

to ensure mentioning of correct particulars i.e. date of original entries, branch code number. etc. in the statement to facilitate quick reconciliation with Head Office, Reconciliation Department, FAD.

16. Before dispatch, the daily IBG Account statement must be care fully cheeked by an Authorised Official who must see that balance of the SIBG A/c statement agrees with the IBG Account balance shown in the Clean Cash Book and General Ledger and the daily figure(s) is/are matched with the daily figures if IBCA/IBDA Issued and Received Register.

17. Any Branch originating an inter-branch entry must send Original and Duplicate sets of relative IBCA or IBDA to the Responding Branch on the same day. Similarly, the Responding Branch must respond the Original set of IBCA or IBDA immediately on receipt. Under no circumstances, IBCAs and IBDAs will be kept pending. If there is any discrepancy in amount or particulars of IBCA/IBDA, responding branch shall request originating Branch to rectify particulars or make adjustment entries, if necessary. Responding Branch shall not make any correction in the IBCA/IBDA received, not shall keep it with them un-responded.

18. The Originating Branch shall send the Triplicate copy of IBCA/IBDA under cover of Originating Statement (F-35) to FAD, Head Office keeping the Quadruplicate (4th ) copy as Office copy/voucher. The Duplicate copies of IBCA/IBDA as received by the Responding Branch Shall have to be sent to the FAD, Head Office under cover of the Responding Statement (F-35A) responding the Original one as voucher.

19. While issuing D.D. or T.T. issuing Branch shall pass following entries:Debit: Cash or Account of purchaserCredit: IBG account, Drawee branch.Credit: Commission/P&T/VAT A/C

20. Paying Branch of remittances will pass following entries:Debit: IBG Account, Issuing Branch.Credit: Cash or Account of Payee/Endorsee.

21. For outstation cheques and bills, the collecting Branch shall not debit paying Branch. Collecting Branch will pass following contra entries:Debit: Outward Bills for Collection (OBC)Credit: Outward Bills Lodged (OBL)After payment/receipt of the proceeds of the OBC, IBC

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Collections:(OBC, IBC etc

Payment of Remittances

Issue of D.D., T.T.:

Procedure of Sending SIBG Statements to FAD, Head Office

CorrectParticulars:

SIBG AccountBalance:

Prompt Dispatch and Responding of Advice:

etc., the paying branch shall pass the following entries.Debit: Cash/Account of the drawer/consigneeCredit: IBG Account of the collecting BranchAfter receiving IBCA from the paying Branch, the collecting Branch shall Pass the following entries:Debit: Outward Bills for Lodged (OBC)Debit: Outward Bills for Collection (OBC)Debit: IBG Account of the Paying BranchCredit: Cash/Account of the drawer/consignee

22. If a Demand Draft is paid before receiving IBCA, it will be paid from DD paid without Advice Account and following entries will be passed:

Debit: D.D. paid without AdviceCredit: Cash or Account of Payee.On receipt of IBCA, following entries are to be passed:Debit: SIBG Account, Issuing BranchCredit: DD Paid without Advice.

23. For reconciliation of SIB Gen. A/C we are to see/examine whether entries originated and reported by the originating Branch are being responded duly by the responding Branch and as well as to see responding entries reported by the responding Branch have already been originated and reported by the originating Branches and if any deviation from the above principles is observed, then the same is to be brought to the knowledge of the defaulting Branch or Head Office.

23.1 Head Office, Reconciliation Department, FAD, shall record the receipt of the statement properly. Thereafter, they shall match the advices in respect of original entries including original reversal to the credit/debit of Branches by whom the entries have been reversed. The aforesaid entries shall be recorded in SIB General Account Subsidiary Ledger Branch-wise as well as entry wise against which reconciliation shall be made by referring to the responding entries as shown in statement of SIB General Account.

23.2 If it is found that some entries originated by the Branch (s) are not responded as per Branch statement of responding entries, the same are treated as un-reconciled entries raised by the Branches. It may also be found that some entries responded by Branch as per Branch statement of responding entries but remain unmatched due to various reasons, which are treated as un-reconciled entries raised by the branches.

24. Sundry Debtors Account should not be normally debited excepting to meet authorised needs/purposes within approved norms with every effort for adjustment of the outstanding at the earliest. Managers must sign all such voucher as well as entries in the Sundry Debtors Register. Monthly statement of Sundry Debtors must be submitted to FAD, Head Office. The entry (entries) must be maintained with contra date without any partial reversal/adjustment.

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Demand Draft payable A/c.:

Reconciliation:

Reconciliation:Process:

Un-reconciledOriginating/RespondingEntries

Sundry Debtors:(Suspense A/c.)

25. Sundry Creditors Account will be credited with such items, which we are not in a position to dispose of immediately. For example, if particulars (account number, name) in a deposit pay-in-slip differ from the particulars mentioned in the Ledger/Computer the amount may be kept in the Sundry Deposit A/c: Sundry Creditors, till final disposal of the amount. Details of these entries must be mentioned in the Sundry Creditors Register/Computer as per voucher (Date, Account Number, Name of the depositors, amount etc) but this should not be done without approval of the Manager, Every effort must be ensured to find out the actual depositor(s) and reversal of the entry for his/their account.

26. Clean Cash Book and General Ledger will be written daily from Supplementary Sheet Summary, Vouchers and other Registers. The Book will be written neatly, free from cutting, over-writing, erasing, fluiding and alteration etc. In case of a mistake, it should not be erased/fluided. An authorised official would pen through neatly, write correct figure above it and authenticate the cutting(s) by his initial. General Ledger is to be checked by Manager/Authorised Officer with the concerned vouchers(s), Supplementary sheets, Registers etc.

26.1 To avoid cuttings, erasing, overwriting in the figures due to any mistake, all figures must first be taken by pencil. When both the sides of the Book agree, the figures should be inked-up. The Manager/Second Officer must check it daily without fail.

26.2 The computerized Clean Cash Book and General Ledger particulars can be available in the Computer and the same should be checked properly with corresponding figures/accounts/vouchers/records etc.

27. Statement of Affairs in the prescribed form is to be prepared from Clean Cash Book and General Ledger/Computer, checked by Manager/Authorised Officer and submitted to Head office and must be signed by the Manager and 2nd Officer. Presently Statement of Affairs is sent once in a month to FAD, Head Office, incorporating the figures of the last day of the month. Furnishing incorrect statement to Head Office or other controlling offices will be considered as serious offence.

28. At the close of business on Thursday (last working day of the week) every branch is to send Weekly Scheduled Telegram to Head Office by Telegram/Telex/E-mail for onward submission of the same to Bangladesh Bank after consolidation of the same. Confirmatory copy is to be mailed in the prescribed on the same day. If Thursday is a holiday, branch will send the same on the preceding working day.

29. Balancing of Books of Accounts at the end of a month must be regular in the Branch. Branches will send Manager’s Certificate of Balancing of Books of Accounts on the last working day of every month to Head Office in prescribed Proforma.

30. In accounting system, SIBL is to comply with following status:

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Balancing:

Weekly ScheduledTelegram:

Statement ofAffairs:

Clean Cash BookAnd General Ledger:

Sundry Creditors:(Sundry Deposit A/c.)

a) The Holy Quran, Sunnah. Izma & Kiyas i.e. Shariah, i.e. anything Prohibited by Shariah can not be taken into Bank’s account under any circumstances but be treated as per instruction of Head Office on the subject.

b) The Companies Act.- 1994c) The Income Tax ordinance- 1984d) The Bank Company Act.- 1991e) The Securities & Exchange Commission Regulation;f) The Memorandum & Articles of Association of the Bankg) Accounting Standards set by the Accounting and Auditing Organization for Islamic Financial Institutions – AAOIFI(previously Financial Accounting Organization for Islamic Banks and Financial Institutions) Bahrain.h) International Accounting Standards (IAS) set by International

Federation of Accountants.i) Accounting Standards set by the Institute of Chartered Accountants

of Bangladeshj) Different Manuals,/Circulars/instructions of SIBL, Head Office.

31. Deposit Accounting / Principles of Deposit:

31.1 Al-Wadeeah means something entrusted to some one’s custody i.e. for safe custody. In this system Depositors do not share profit or loss. Repayment of principal amount of deposit is guaranteed. Al-Wadeeah Current Accounts are opened under this principle.

31.2 In this system depositors share investment Income at predetermined ratio. Loss, if any is borne by the depositors alone. Mudaraba Savings Deposit (MSD), Mudaraba Notice Deposit (MND), Mudaraba Term Deposit and Mudaraba Hajj Savings A/c(s), , MSS, MMPDR, MMS etc, are open under Al-Mudaraba principle. The Bank has various Mudaraba Deposit Products (Profit bearing deposit). To satisfy about the accuracy of payment of profit on profit bearing Mudaraba deposits, the Branches/FAD should maintain the average outstanding of each type of Mudaraba deposit as per Weightage and the profit accrued and provided thereon on monthly basis to have the annual figures of average total Mudaraba deposits and profit paid/provided thereon for verification of accuracy of payment of profit thereon and other purposes.

31.2.1 Weightage for calculation of Profit under different periods.

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SIBL Accounting System:

Al-Wadeeah:

Al-Mudaraba:

Types of Mudaraba Deposit and Maturity period thereof

Weightage for calculation of profit under different

periods.

Month-wise average Deposits

and profit provided therefore.

Total average deposits and profit paid

thereon

i) MMPD (Mudaraba Monthly Profit Deposit Scheme))

5 Years 0.98

ii) MSS (Pension) 10 Years5 Years

0.980.96

iii) MMS (Mohur Savings) 5 Years10 Years

0.960.98

iv) MESS (Mudaraba Education Savings )

8 Years5 Years

0.980.98

v) MHS (Mudaraba Hajj Savings) Above10 Yearsup to 10 Years

0.98

0.98vi) MTD (Mudaraba Term Deposit) 36

Months24 Months12 Months6 Months3 Months

1.00.1.001.000.980.96

vii) MSD (Mudaraba Savings Depoit.) 0.49

viii) MND (Mudaraba Notice Deposits) 0.04

ix). MMS (Millionaire Scheme) 0.98x). BSS ( Bashasthan Savings) 0.98xi). MDBS ( Double Benefit Scheme) 1.00xii). MMSA( Marriage Saving A/c) 0.96xiii). MMTSS (Monthly Term Savings) 0.96xiv). Cash Waqf 0.98

Grand Total

32. Exchange, Commission & Income are taken into account on actual basis.

33. Accrual system of recognition of expenditure i.e. Expenditure are taken into A/c.

35.

35.1 a) Income from use fund (investment Income)b) Income from Miscellaneous Banking services without use of fund (Commission, Exchange and other income).

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Income Accounting

Expenditure Accounting

Distribution of Income:

Sources of Income:

35.2 Income from Investment and Miscellaneous Banking services are accounted for separately.

35.3 Income earned from Investment is first divided as per ratio between Mudaraba deposits i.e. cost bearing fund & cost free fund & Bank’s equity according to its proportion.

35.4 At present, minimum 65% of Investment Income earned through deployment of Mudaraba Fund is distributed to Mudaraba Depositors. Mudaraba Depositors do not get any share of miscellaneous Income.

35.5 20% of the investment income is retained by the Bank as fee for managing the Investment.

35.6 Mudaraba Funds get priority over Non Mudaraba Fund in the matters of Investment.

35.7 Profit is allocated to Mudaraba Depositors on the basis of Weightage fixed by the management from time to time.

36.

36.1 In Book keeping & Accounting system the Bank has to maintain standard Books and forms as mentioned in before. The branches/Offices endure proper use of the Banks standards Books and forms for the purposes they are designed for.

37. Followings are the approved Heads of Accounts in the Clean Cash Book & General Ledger:

LIABILITIES ASSETS

1. Deposits: 1. Cash & Bank Balancea) Cash in hand

a) Al-Wadeeah C/A b) Foreign Currency in handa) Mudaraba Saving A/C. c) Balance with Bangladesh Bankb) Mudaraba Saving (RDS) A/c. d) Balance with Sonali Bankc) Mudaraba Special Notice A/c. e) Bangladesh Bank F.C. Clearing A/cd) Mudaraba Term Deposit A/c. 2. Balance with other Banks:e) Mudaraba Hajj Savings A/c. a) In Bangladeshf) Mudaraba Savings Bond b) Outside Bangladeshg) Mudaraba Special Savings (Person)

Scheme.3. Investments:

h) Mudaraba Monthly Profit Deposit Scheme. a) Mudaraba (General)i) Mudaraba Mohor Saving A/c b) Mudaraba (Post-Import)j) Profit Payable A/c. (Term-wise) c) Bai-Muazzalk) Sundry Deposit d) Bai-Muajjal (RDS)l) Non Resident Taka Deposit e) Hire-Purchase & S. Meelkm) Convertible Taka A/c. f) Bai-Salam (Export)

g) Musharaka (General)

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Book Keeping in SIBL:

Heads of Accounts in Clean Cash Book and General Ledger:

h) Musharaka (Preshipment)i) Musharaka (Potato-Storage)j) Quard against TDRk) Quard against Substitute

Cash Assistance

2. Bills Payablea) D.D. Payable l) Quard-e-Hasana (General)b) T.T. Payable m) Bai-Muajjal (Staff)c) P.O. Payable n) HPSM (Staff)

o) Quard against P.F. (Staff)3. F.C. Deposit Accounts p) Quard-e-Hasana B.F. (Staff)

q) Quard-e-Hasana (General 4. Other Liabilities

a) F.C. Charges 4. Inland Bills Purchasedb) Adjusting A/C Credit Balancec) Profit Receivable A/c. 5. FBN & FBPd) F.C. Held against B.B. L/C. a) Mura Bill of Exchange (Gen.)e) Clearing Adjustment b) Bai-Murabaha Import Bills f) Profit/Rent Suspense Account c) Bai-Muazzal BB Billsg) Compensation Suspense Account d) Foreign Bill Negotiatedh) Transfer Delivery Adjustment A/c. e) FCDPi) Rent Receivable Account

6. Furniture, Fixture & Library5. Branches Account:

a) SIB- General A/c. (Computer) 7. Premises Account

6. Liabilities as per Contra: 8. Other Assets:a) Outward Bills for Collection a) Suspense Accountb) Inward Bills for Collection b) D.D. Paid without Advicec) Outward Foreign Bills for Collection c) Adjusting A/C Debit Balanced) Inward Foreign Bills for Collection d) Stock of Stationery in Hande) Inland L/C e) Stamps in Handf) Import L/C (General) f) Advance Depositg) Back to Back L/C (Foreign g) XPB Premium Paidh) Back to Back L/C (Inland) h) F.C Funds Purchasedi) Back to Back Bills (Foreign i) Advance Rentj) Back to Back Bills (Inland) j) Clearing Adjustmentk) Letter of Guarantee k) Transfer Delivery Adjustment A/c.

09 Branch Accounts.7. Income A/C a) SIB General Account (Computer)

10. Assets as per contra:a) Outward Bills Lodgedb) Inward Bills Lodgedc) Outward Foreign Bills Lodged

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d) Inward Foreign Bills Lodgede) Inland L/Cf) Import L/C (General)g) Back to Back L/C (Foreignh) Back to Back L/C (Inland)i) Back to Back Bills (Foreignj) Back to Back Bills (Inland)k) Letter of Guarantee

12. Expenditure A/C.

38. Head of Accounts of Income & Expenditure Register INCOME: EXPENDITURE:1. Investment Income 1. Profit Paid on Deposits:

i) Murabaha (Com.) i) Profit Paid on PLS-DAii) Murabaha (Industrial) ii) Profit Pain on MNDiii) Murabaha (BB L/C) iii) Profit Paid on TDRiv) Murabaha (Import Bills)v) Murabaha (Preshipment) 2. Salaries Allowances:vi) Murabaha (Post-Import) i) Basic Payvii) Musharaka (Com.) ii) House Rent Allowanceviii) Musharaka (Industrial) iii) Medical Allowanceix) Musharaka (Preshipment) iv) Entertainment Allowancex) Musharaka (Import) v) Conveyance Allowancexi) Musharaka (Real-Estate) vi) Bank’s Contribution To P.F.xii) Bai-Muazzal (Industrial) vii) Honorariumxiii) Bai-Muazzal (Com.) viii) Special Allowancexiv) Bai-Muazzal (Argil) ix) Leave Encashment Allowancexv) Bai-Muazzal (Real- Estate) x) Overtime xvi) Bai-Muazzal (BB Bills) xi) Bonus xvii) Hire-Purchase (Industrial) xii) Staff Welfarexviii) Hire-Purchase (Real-Estate) xiii) Wagesxix) Hire-Purchase (Transport)xx) Hire-Purchase (Argil) 3. Directors Fees & Expensesxxi) Shirkatul Meelk (Industrial)xxii) Shirkatul Meelk (Real-Estate) 4. Rent, Rates, Taxes & Ceases:xxiii) Shirkatul Meelk (Transport) i) Rent (Office)xxiv) Shirkatul Meelk (Argil.) ii) Rent (Residence)xxv) Quard Against MTDR iii) Rates & Taxesxxvi) IB. General A/C (DR./CR.) iv) Ceases

2. Commission Income: 5. Insurancei) Commission on L/C (Inland) i) Insurance: Cash in Transit/Safe/Counterii) Commission (Foreign) ii) Insurance: Vehicleiii) Commission (Acceptance BB & other

Issuance Bill)iii) Other Insurance

iv) Commission (For L/C Confirmation)v) Commission (Travelers Cheques) 6. Lighting & Electricityvi) Commission Local Bills (OBC & IBC)vii) Commission Foreign Bills (Clean

Inward & Outward)7. Law Charges:

viii) Commission Export Bill i) Legal Charges

2

ix) Commission DD/TT/MT/PO (Inland) ii) Stamp Chargesx) Commission DD/TT (Foreign)xi) Commission Letter of Guarantee (Local) 8. Postage/Telegram/Telephone/Telex/Fax:xii) Commission Letter of Guarantee

(Foreign)Postage

xiii) Commission Clearance of Imported Consignments.

Telegram Charges

Telex ChargesTelephone (Office)Telephone (Residence)Trunk Call ChargeFax Charge

9. Auditors Fees:

10. Repairs & Renovation:i) Furniture & Fixture (Wooden & Steel)ii) Machines, Equipment & Appliancesiii) Rented Premises

11. Maintenance of Motor Car & other Vehicles

CHAPTER- XXXIV2

3.i) Exchange on Foreign Currencyii) Any other Exchangeiii) Foreign Correspondent Charges

4. Other Income:

Exchange Income:

i) Exchange on FBN/P Rent on Lockerii) Telephone/Trunk Call Charges

Recoverediii) Telex Charges Recoverediv) P & T Charge Recoveredv) Legal Expenses Recoveredvi) Misc. Earning

5. Total Provisional Income

6. Net Provision Profit/Loss

12. Depreciation on Bank’s Property:i) Depreciation on Furniture & Fixture (Wooden &

Steel)ii) Depreciation on Motor & other Vehiclesiii) Depreciation on Machines Equipment’s &

Appliancesiv) Depreciation on Books & Library

13. Stationery, Printing & Advertisement:i) Printing & Stationery (Books & Forms)ii) Paper & Table Stationery

14. Other Expenditure:i) Local Conveyance Expensesii) Petroleum Oil & Lubricants (Motor Car Running

Expenses)iii) Entertainment Expensesiv) Traveling Allowancesv) Air conditioning Chargesvi) Bank Chargesvii) Liveries/Uniformsviii) Donationsix) Subscriptionx) Bank’s Clearing House Charges xi) Transportation Chargesxii) Evening Banking Allowancexiii) News Paper, Journal & Periodicalsxiv) WASA/Gas Chargesxv) Washing Chargesxvi) Direct Expenses on Investment (Wages, Godown

Rent, Insurance etc.)xvii) Training Expensesxviii) Research & Project Formulationxix) Meeting Expensesxx) Upkeep of Branch/Office Premisesxxi) Computer Chargexxii) Misc, Expense

ONLINE BANKING OPERATION IN SIBL

A. Introduction:Social Investment Bank Ltd commenced its Online Banking Operation from 1st January, 2004. It is also known as ‘Any Branch Banking System’. At present 20 (Twenty) branches of SIBL are providing online banking facility to our esteemed clients. By Any branch banking facility of one branch can make transactions like Cash Withdrawals and Deposits, Balance inquiry, Account Statements etc from any branch of SIBL under the System of Online Banking across the country.

B.Categories of Accounts under online Banking System:

a. All kinds of accounts except Scheme Deposit accounts & MTDR.b. Clients holding AWCD or MND or MSD account will be able to deposit into and withdraw

either in Cash or by Transfer. Cheque leaf is the only instrument for withdrawal purpose either cash or by transfer.

c. Clients of all kinds of Investment Accounts will be able to make deposit for transactions either in cash or by transfer.

C.Branches under Online Banking Facility :

1.Principal Br. 2.Foreign Exchange Br. 3.IDB Bhaban Br. 4.Mirpur Br. 5. Nawabpur Road Br. 6. Sirajgonj Br. 7.Gulshan Br. 8. Panthapath Branch 9. Uttara Br. 10.Agrabad Br. 11. Halishahar Br. 12. Jubilee Road Br.13. Sylhet Br. 14. Rajshahi Br. 15. Bogra Br. 16. Khulna Br. 17. Moulvi Bazar Br. 18.Khatungonj Br. 19. Dhanmondi Br. 20. Babu Bazar Br.

D. Accounting Entries for On-line Banking :

a. Cash Withdrawal :If account holder of Branch ‘A’ withdraws money from branch ‘B’ through cheque.

(Operator of Branch ‘B’ will login into Branch ‘A’, Debit the account by Cash, Exit from Branch ‘A’, Pay Cash Taka from counter) the following transactions will take place:

a. Dr. Customer Account (At branch ‘A’)

Transfer By Operator

Cr. SIBG Account Transfer Automatic (At branch ‘A’)Dr. SIBG Account Cash Automatic (At branch ‘B’)Cr. Reserve Cash (At

Branch ‘B’) – By which cash is payable to bearer of the cheque

Cash Within the Accumulated Cash Voucher at the end of the Day.

b. Cash Deposit:

If account holder of Branch ‘A’ deposits money at Branch ‘B’ for Crediting his/her account with Branch ‘A’- (Receive Cash with Deposit Slip, Operator of Branch ‘B’ will login into Branch ‘A’,

2

Credit the Customer/Payee Account by Cash, Exit from Branch ‘A’ ) the following transactions will take place:

a. Dr. Reserve Cash (At Branch ‘B’)

Cash Within the Accumulated Cash Voucher at the end of the Day.

b. Cr. Customer Account (At branch ‘A’)

Transfer By Operator

c. Dr. SIBG Account Transfer Automatic (At branch ‘A’)d. Cr. SIBG Account Cash Automatic (At branch ‘B’)

c. Fund Transfer:

i) If account holder of Branch ‘A’ transfer money from his/her account to an account with Branch ‘B’ through Cheque, the Cheque is placed at Branch ‘A’ – (Operator will Debit Customer account by transfer of Branch ‘A’, Login to Branch ‘B’, Credit Payee A/C of Deposit Slip by Transfer) the following Transactions will take place:a. Dr. Customer Account Transfer By Operator (at Branch ‘A’)b. Cr. Payee Account Transfer By Operator (at Branch ‘B’)c. Dr. SIBG Account Transfer Automatic (at Branch ‘B’)d. Cr. SIBG Account Transfer Automatic (at Branch ‘A’)

ii) If account holder of Branch ‘A’ gives an Account Payee Cheque to an account holder of Branch ‘B’, the Cheque placed at Branch ‘B’ – (Operator will Login to Branch ‘A’, Debit Customer account by Transfer, Exit from Branch ‘A’, Credit Payee A/C of Branch ‘B’ as per Deposit Slip by Transfer) the following Transactions will take place:a. Dr. Customer Account Transfer By Operator (at Branch ‘A’)b. Cr. Payee Account Transfer By Operator (at Branch ‘B’)c. Dr. SIBG Account Transfer Automatic (at Branch ‘B’)d. Cr. SIBG Account Transfer Automatic (at Branch ‘A’)

Note: On-Line Transaction performs 3 (three) transactions at a time, 2 in remote and 1 in local. During the Remote Cash Transaction, though the operators select Cash as reference, remote Branch transactions (2 transactions) automatically will be converted to Transfer transaction and the rest (1 transaction) local SIBG transaction will be converted to Cash for the contra equilibrium.

E. Voucher Generation & Voucher Preservation: Originating branch will preserve all vouchers related to originating transactions and Responding branch will have to preserve all generated responding vouchers related to responding transactions. Cheque(s) or Deposit vouchers also will have to preserve by originating branch i.e. where the transactions will be done. For example, if a customer of branch “A” makes a transaction in branch “B” either through Cheque or Deposit voucher, the Cheque or Deposit voucher will have to preserve by branch “B”. Both the originating and responding branch must have to verify and check all the responding & originating transactions done by the On-Line transactions.

2

Necessary vouchers should be generated of those transactions that have no physical voucher and also showing in the transaction lists (both Client and GL) due to remote transaction to/from the branch.

F. Code of On-Line IBTA Transactions: Code for the Online Transaction will be 071. IBCA/IBDA Advice Number will be generated by the system automatically. In case of any reverse transactions for the on-line system, the code will be 072.

G. Report Generation & Preservation: The branch either originating or responding must have to print, verify and check all system-generated daily reports related to On-Line banking (Remote transactions) with daily transactions like:

a) Transaction list from Remote,b) Transaction list to Remote,c) Log List (both to & from),d) Inter branch transactions (IBTA) related (Reconciliation) all reports,e) And others, available in the system.

And will have to preserve for future reference. It is noted that branch also must have to print all other daily and periodical vouchers/reports regular basis.

H. Inter-Branch Transaction Settlement (Reconciliation):System will generate all originating entries, responding entries and extract including all on-line transactions. The branch will have to send the above reports to CAD, Head office as usual. Please note that system will generate 10 digits Advice number for all on-line transactions and our existing Advice number is 6 digits. You are also requested not to confuse for this variation, Head Office, Reconciliation Department will take care for this variation.

I. Intermediary Branch:A branch cannot make on-line transactions as intermediary branch for or on behalf of other branch. Branch is allowed to make transactions for his/her own branch. For example, if a customer of “A” branch goes to “B” branch to Deposit or withdrawal money at “C” branch, the branch “B” is not allowed to make transactions on behalf or for branch “C”.

J. Limitation of Amount:A customer of SIBL may deposit unlimited amount at any designated branch of SIBL. But in case of cash withdrawal the following restrictions shall have to be observed by the Branches before making transactions.

In this regard, the limitations for online Cash withdrawal & Fund transfer (Intra city and Intercity) from now & on shall be as following:

2

K. Charges and Fees: You are aware that satellite charges, software license fee and overall maintenance of the On-Line Banking system is costly. Though the system is costly, to make the on-line banking system attractive the charges and fees of this service will be free for all kinds of account holder.

L. On-Line Transaction Period/Day Start & Day Close:Each branch must complete their day operation/ accounting, update, reports generation, checking, backup etc. within the same day and have to day started at 9:00 A.M. in each working day.

2

Account holder in person

Transaction Type A/c Type Limit PrecautionsIn case of

Exceeding the limit

Cash Withdrawal MSDUpto Tk. 50,000/- per day or 25% of the balance, which ever is lower.

The official originating the transaction must verify the signature and Photograph carefully.

The official originating the transaction must refer to the Manager and permission from the responding branch must be obtained in written by the responding branch Manager/ Second officer in duly signed paper / Authorized E-mail.

Cash Withdrawal AWCD & MND

Upto Tk. 2,00,000/- per day

Other than

Account

holder in

person

Cash Withdrawal MSDUpto Tk 25,000/- per day or 25% of the balance, which ever is lower.

The official originating the transaction must verify the signature carefully.Cash Withdrawal AWCD

& MNDUpto Tk. 1,00,000/- per day

Fund Transfer

An account holder of Branch ‘A’ gives an account payee cheque to an account holder of Branch ‘B’.

MSD Upto Tk. 2,00,000/- per day

The official originating the transaction must verify the signature carefully.

AWCD & MND

Upto Tk. 10,00,000/- per day

An account holder of Branch ‘A’ transfers money from his/her account to an account with Branch ‘B’.

Rules regarding this type of Fund transfer shall remain unchanged.

On-Line transaction will be start from 9:00 A.M. of each working day and end at 3:00 P.M. from Saturday to Wednesday and 1:00 P.M. on Thursday. Inquiry, Client Statement/ other remote report generation will be available within office hour.

M. Restore Restrictions:No branch can perform backdated data restore process within the on-line transaction period for any kind of purpose unless hardware/ PcBANK2000 software problem. In case of data restore due to server hardware problem or PcBANK2000 software problem, you have to inform Computer Department, SIBL, HO, Dhaka before performing restore process.

N. Access Control/ Security Measures:Meanwhile, personnel of computer department, Head office visited all designated branches and changed ID and Passwords of the branch user as well administrator at both Operating System and Application level (PcBANK2000) by the branch specified system administrator. The branch Managers are hereby requested to maintain proper Ids and Passwords for the branch user and administrator at both Operating System and Application level with rights/authority and change the Passwords periodically like weekly/monthly and keep the Passwords very confidential. The branch managers are also requested to supervise the administration of the computerized system and proper uses of the rights/ authority of the user(s)/administrator(s).

O. Checking of Online Transaction:In order to ensure successful completion of Online Transaction in the both the originating and responding branch have to follow regularly the steps given below:

Step-1 : For local incomplete transactions branch will check the local pending

transaction:

If there found any local pending transaction then you have to click on “Complete local pending transaction” for local incomplete transaction.

Step-2 : If there is any remote transaction, you should re-confirm the balance through

remote transaction screen.

Step-3 : Branch can check the transactions in the remote report, Such as:

a. Trans. To Remote (Remote Branch Record) b. Trans. To Remote (Own Branch Record)

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c. Trans. From Remote (Own Branch Record).

Incase of sudden collapse or failure of the Branch Server the instruction laid down in the Instruction Circular No. ICTD/2006/19 dated 15.03.2006 must be followed. The instructions are: -

Duties and responsibilities of the host branch (Where the OS/database crush has occurred):

1. At first contact with ICT Department for recovery of the system over telephone or any other means immediately and it must be followed by written request.

2. Inform the system failure to all other branches over telephone, e-mail etc. and request them to send the online transaction reports (to & from report) immediately by return mail/fax. In case of delay response, host branch have to contact over telephone to receive the online transaction reports.

3. After receiving online transaction reports and recovery of server, host branch have to enter/post the client and IBTA transaction(s) (with auto generated advice number) carefully & accurately by local transaction menu of host branch Pcbank2000 software.

4. Take confirmation of reconciliation for that days Online transaction(s) from FAD, HO within 3 days.

5. In case of any help host branch may contact with ICT Department.

Duties and responsibilities of the remote branches:

1. After receiving this type of mail/telephone remote branch have to respond immediately and send the online transaction reports (to & from report) by return mail/fax if any online transaction performed by remote branch &/or host branch. In case of no online transaction, remote branch also has to send a mail/fax mentioning “No Online Transaction”.

2. Take confirmation of reconciliation for that days Online transaction(s) from FAD, HO within 3 days.

3. In case of any help remote branch may contact with ICT Department.

__________

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CHAPTER-XXVI

Cash Management, Maintenance ofKeys and Security measures

1. Cash is a very important and sensitive item for day to day transaction of the Branches. Internal check, supervision and monitoring at different stages of cash handling is extremely necessary to avoid the incidents of thefts, fraud, forgeries, embezzlement and shortfall of cash. Adherence to the set rules & procedure is essential. Proper maintenance and handling of cash plays a vital role in smooth functioning of the Bank.

2. The Cash in-Charge, 2nd Officer and the Manager as Joint custodian must be present when the strong room is closed and opened. None should enter into it except in the presence of the key holders. The strong room must be under the double lock. Cash and documents kept in joint custody in the strong room should be handled only in the presence of all the joint custodians.

3. The following general instructions must, however, invariably be followed at all branches.

3.13 No unauthorized person be allowed to enter into the cash counter which should be under lock and key from inside, stitching / sorting of cash must be done under proper supervision.

3.14 The Cash-in-Charge/Paying cashier must maintain the specimen signature of authorized passing officials and similarly receiving/paying cashier signature must be with cash receiving officer/passing officer. The dealing of cash by the corrupt employees and officials should be guarded against pocket / parallel banking.

3.15 Notes of each denomination must be sorted and arranged in the prescribed manner in packets of 100 pieces each. Packets of less than 100 pieces of each denomination should be treated as loose cash and not to be mixed up with full packets. Each packet should be secured by a rubber band and stitching or as per instruction given from Bangladesh Bank from time to time.

3.16 The full packets of 100 pieces each should be tightly tied with thread at the left hand edge of the packet. Upper side of the packet should be covered by pasting a denomination slip available at branches. However, the full packets of the Tk. 100/- and Tk. 500/- taka notes shall have to be stitched as per practice of the Bangladesh Bank. 10(ten) packets of each kind of notes shall form bundle for arranging cash in tills.

2

Introduction:

Custody ofCash

General InstructionforCash Handling:

3.17 The round rubber stamp of the branch should be distinctly affixed on both sides of the packets covering the thread portion under the initial of concerned receiving /counting cashier(s).

3.18 The staff counting and examining the notes will legibly put their signatures on the label as well as at the backside of the packets.

3.19 The Head Cashier or the Cash-In-Charge should countersign the labels on all full packets and to see that the packets contain legible signatures as prescribed above of the cashiers who have counted and examined the notes. Normally all full packets of same denomination should be equal in size so that while putting counter signature the Head Cashier or the Cash-In-Charge may be able to detect shortage or excess in any packet. The size of the packets may reveal such discrepancies.

3.20 At the time of closing the cash balance of all loose packets should be counted 100%. The full packets should be checked by random counting of few packets of different denominations.

3.21 The packets so made, counted and checked will then be tightly tied up in bundles of packets each before safe keeping in Vault.

3.22 Under no circumstances Defective/Mutilated/Burnt/Torn etc. notes should be mixed up in the packets of good notes. As a matter of rule those types of notes should not be accepted over the counter either as deposits or in exchange of good notes. Violation of this rule will invite disciplinary action against the person liable. At the request of valued clients these type of notes may be accepted only on collection basis, Such notes, if any, should be sent immediately for collection to the nearest office of Bangladesh Bank directly for payment of value in terms of Bangladesh Bank’s / Head Office instructions.

3.23 Soiled notes, if any, should be kept separate from those notes fit for re-issue. Such notes should be deposited to Bangladesh Bank and or Sonali Bank as per practice in vogue.

3.24 All notes must be protected against damp, insects etc. and should be kept in the chest / under lock and key.

4. The cash balance shall ordinarily consist of nothing but notes and coins and

the 2nd officer will see that the whole of it is licked up in the strong room. In the event of any cash payment being made after the Cash Balance Book have been closed in any emergency or in any unavoidable circumstances, after closing of Cash Balance, the relative voucher must be passed by the Manager and entered in the Paying Cashier’s Book (B-7) under the following day’s date. A note to this effect is made in the Cash Balance Book under authentication of the Cash-In-Charge and the 2nd officer. Amounts received, if any after closing the Cash Balance Book (B-45) must also be similarly entered in the Receiving Cashiers Book (B-7) and noted in the Cash Balance Book. ANY DEVIATION FROM THIS RULE WILL BE REGARDED AS SERIOUS OFFENCE.

2

Evening Banking:LatePaymentAnd LateReceipt

5. Before taking notes and coin into the joint custody the 2nd officer will check their correctness in the following manner:

5.3 He will personally count all notes of denominations and will verify as large a portion as practicable.

5.4 The 2nd officer will satisfy himself in each evening that the joint custody balance corresponds exactly with the entries in the cash position slip as well as Cash Balance Book. The Manager satisfies himself about the Cash Balance of the Branch on each day either by counting the whole amount or on test basis. However, the Manager will check at least once a month the WHOLE of the Cash Balance and the fact is to be noted in the Cash Balance Book under his full signature with date.

7. Any shortage in the cash balance, occurs under any circumstances should be recovered from the concerned Cashier/Cash-In-Charge on the same day, if possible. Failing recovery on the same day, the amount must be debited to “Protested Bills Account”, under telegraphic/Telex advice to Head Office/Zonal Office followed by a letter in detail describing the shortfall fixing responsibility of the offender with specific recommendations of the Branch-incumbent. The amount must be recovered as soon as possible and the entry in “Protested Bills Account” adjusted under advice to Head Office.

8. While taking day’s cash position, any excess if found in cash balance it must be credited to “Sundry Deposit Account” under advice to Head Office naming the cashier at fault. Any claim made for the amount should be paid by means of a Payment Order/ transfer voucher if the Manager is fully satisfied himself that the demand is in order. On 31st December in each year, items which have been lying unclaimed for one year or more will be referred to Head Office for instructions as to their disposal.

9. Care should be made that no forged/miss-matched currency note(s)is/are received at the counter. Whenever a forged note is detected at the counter, the depositor should be handed over to the police.

Ordinarily no defective (mutilated, burnt, torn, defaced, soiled etc. unfit for exchange) notes tendered at branches should be accepted. In the event of any such notes being detected the amount will be immediately recovered from the Cash- In-Charge / dealing cashier. However, on account of deposit of such notes by the valued clients should be received on collection basis like OBC i.e. collected from Bangladesh Bank through feeding branch. The account of the depositor will be credited after realization of the proceeds and recovery of Bank’s charges.

10. Insurance of Cash-in-safe, Cash-over-counter and Cash-in-transit in respect of all branches is arranged by the GSD, Head Office. Particulars of remittances received and dispatched, will be recorded by the branches in the Cash-in-transit Register and monthly statements thereof be submitted to the GSD, Head Office by the 7th of the following month. The amount of premium payable to the insurance Company will be

2

Cash CheckingProcedure:

CashShortage:

ExcessCash:

Forged CurrencyNotes:

Insuranceof Cash:

paid by Head Office by debiting the branches concerned through IBDA. The branches will in turn respond the entry (IBDA) by debiting their Expenditure Account under sub-head “Insurance” on receipt of the relative advice from Head Office. Insurance limit relating to Cash-in-safe, Cash-on-counter and Cash-in-transit should be meticulously observed including maintenance of the Cash within the respective approved Limit / ceiling.

11. Whenever the 2nd officer / joint custodian of cash is changed or a Branch Manager is relived, the official taking over, will verify the whole of the cash balance of the branch & will submit the Cash Verification Report to HRD, Head Office.

11.1 Whenever the Cash-in-charge is changed, the outgoing and incoming officers will sign the Cash Balance Book (B-19) on the date of relieve.

11.2 Whenever cash balances are verified by an Executive / Auditor, Verifying Officer, Manager/2nd officer, must remain present during the period of verification.

12. When the cash in hand exceeds the limit fixed by the Head Office, cash excess over limit shall have to be remitted to the nearest feeding branch Local Office / Bangladesh Bank at the earliest.

12.1 On receipt of information, the Feeding Branch should arrange collection of cash. Feeding Branch will be debited by Remitting Branch through SIB General A/c. and IBDA with Cash Remittance Invoice be sent with the cash escort party which will be responded on receipt of cash by the Feeding Branch. Transport of cash must be within the insurance limit of Cash-in-transit. The cash should be remitted through/carried by an Officer with adequate armed guards and security measures.

13. Cash remittances to and from branches must be accompanied by an officer and necessary armed guards or police escorts. Number of armed guards/police escorts required should be determined by volume of cash involved and means of transport available.

13.1 For all cash remittances sent, branches should maintain a Register (b-46) and the receipt of the accompanying officer/cashier shall be obtained therein for the amount of cash delivered to them. Signatures of the members of the escorts should also be obtained and verified.

13.3 For the amount of cash remitted, the remitting branch will debit the concerned branch and send the relative IBDA with the officer accompanying the remittance. The denominations of notes and coins and the value against each denomination should be mentioned in the overleaf of the IBDA.

2

Change of Officials:

Deposit of Cash WithAuthorizedOfficers:

CashRemittances& Cash lifting:

13.3 The receiving branch will check the cash as per particulars to the IBDA and account for the remittance on the same day by responding the IBDA. The receiving branch must also acknowledge receipt of the remittance in the sub-joined portion of Invoice duly signed by the Branch Incumbent, 2nd Officer and the Head Cashier. The acknowledgement should be handed over to the accompanying officer, who in turn will deliver the same to the remitting Branch on his return. For acknowledgement received the relative column in the Cash Remittance Register (B-40) should be kept in the safe custody of the authorized official.

13.4 For lifting of cash from branch or branches specific and fresh Letter of Authority on each occasion should be issued in favor of the officer deputed for the purpose. Letter of Authority should be addressed to the branch from where cash is to be lifted as per intimation received. Where cash is to be lifted from more than one branch by an officer it is not necessary to issue separate letter of authority addressed to each individual branch. One Letter of Authority addressed to all branches should be enough. The officer concerned, on his return from the branches with cash, should surrender the Letter of Authority which should be cancelled and filed by the authorized official at the cash lifting branch.

13.6 At the receiving branch cash lifted from a branch or branches should be checked before the accompanying official as per particulars mentioned in the relative IBDA (s). The IBDA(s) should be responded on the same day of cash is received. An acknowledgement duly signed jointly by authorized officials as provided in the sub-joined portion of Invoice mentioned above should be sent out at once to the branch from where cash has been lifted.

13.6 The date of receipt of the acknowledgement from the cash lifting branch should be entered by the remitting branch in the Cash Remittance Register (B-40) against initial of the authorized officers. Non-receipt of the acknowledgement should be followed up with the cash-lifting branch without any delay. Acknowledgement should be preserved in a file.

13.7 Like Cash Remittances sent, records of Cash Remittances received should also be maintained in the Register (B-40) as mentioned herein above.

13.12 In both the cases of remittance received and sent the record of Cash Remittance shall be recorded in the Register (B-40) duly filled in the appropriate column without fail and that should be ensured by the Branch-Incumbent positively.

13.13 Shortage, if any, found in any packet should be recovered from the staff with due information to the branch-incumbent of concerned/respective branch and not be debited to Suspense Account. Due care to be taken to check embezzlement of cash in transit.

13.14 Any incident of shortage/excess of cash at the cash counter in the daily receipt and payment must be subject to written clarification/explanation from the concerned receiving and paying cashier. The excess payment/short receipt, if any, must be recovered from the concerned cashier on the spot and the excess, if any, must be kept in Sundry Deposit

2

Shortage/Excess cashFound atCounter:

Account till identification of the cases and settlement thereof within the acknowledgement of the branch incumbent/competent authority.

The District Head quarter branches will make their remittance through Sonali Bank, Treasury Branches as per present practice. In case, if necessary, District Head quarter Branches will contact with Local Office, directly to make remittance to and from them.

Where, there is Bangladesh Bank Office, the Divisional Head quarter Branches will avail the said remittance facilities through Bangladesh Bank and where there is no Bangladesh Bank Office, they will also remit to and from through Sonali Bank, Treasury Branch.

13.15 No soiled, mutilated non-issue notes are to be issued to cash counter for payment purpose. Such notes accumulated at the Branch are to be kept ready for getting exchange from Bangladesh Bank through the designated feeding Branch on collection basis under intimation to BDMD, Head Office. While the designated feeding branch has no scope to get those notes exchanged from Bangladesh Bank directly, the same may be sent to Principal Branch, Dhaka with prior approval from BDMD, Head Office, Dhaka. The branch shall ensure regular persuasion to Principal Branch, Dhaka till receipt of the Exchange value from them. The BDMD, Head Office shall monitor early disposal of the notes/remittance of the exchange value. Such remittances will be carried out by Principal Branch, Dhaka by its own escort with transport.

13.11.1 For such remittance the following entries are to be passed by the remitting branch.

Debit: Suspense Account

Credit: Cash in Hand Account

Debit: IBG Account (after receipt of the cash)

Credit: Suspense Account (after receipt of the cash)

14. When cash in vault of the branch, maintaining account with Bangladesh Bank or Sonali Bank exceeds the insurance limit approved by the Head Office, deposit the excess amount with the Bangladesh Bank or the Sonali Bank, as the case may be as per arrangement.

14.7 The deposit should be made by debit to “Balance with other Bank Account” Or “Bangladesh Bank principal Account” maintained with the branch/Local Office and cash deposited through pay-in-slip and in turn a receipt will be issued by the Bank with which cash is deposited.

14.8 Necessary entries should be made in “Balance with other Bank Account”/”Bangladesh Bank Principal Account” Register (B-62) wh7ch should be signed by the Manager or the authorized officer.

2

Deposit of Cash withBankers:

14.9 The officer who will carry and deposit cash with the Bangladesh Bank/Sonali Bank will sign on the reverse of the relative voucher.

14.10 The cash along with the pay-in-slip will be carried by the official concerned to the Bank accompanied by armed guard (s) and deposited against receipt issued by the Bank where cash is deposited.

14.11 When the concerned official returns after deposit of cash, the counterfoil of the pay-in-slip should be checked by the Manager himself and pasted/kept with the relative debit voucher.

14.12 In case of Principal Branch Cash is being deposited to Bangladesh Bank through Financial Administration Division (FAD). Generally, FAD prepares & signs the pay-in-slip for depositing the money.

15. When withdrawal of cash from the Bangladesh Bank / Sonali Bank / other Bank is required where the account of the branch is maintained, the same may be withdrawn through cheque duly recorded in the Bank Ledger (B-62)/Computer after completion of necessary formalities.

15.5 The cheque should be drawn in chronological order under the signatures of the authorized officers in the appropriate manner. The Officer (s) who will be sent to bring the cash will sign on the back of the counterfoil of the cheque. Adequate armed guards should accompany the Officer(s) who will be sent to bring cash.

15.6 The amount of the cheque will be credited to Bangladesh Bank / Sonali Bank/ Other Bank Account by contra debit to Cash Account when the cash is received.

15.7 In case of Principal Branch, Bangladesh bank Cheque are issued by FAD as & when requested by Principal Branch for withdrawal of Cash from Bangladesh Bank.

15.8 Payment through counterfeit cheques should be checked.

16. If a branch outside Dhaka having T.T. discounting facility with the Bangladesh Bank or Sonali Bank at the same station is short of fund to meet its requirements for payment, the same may be managed by discounting T.T. with the concerned Bank within the limit fixed for the purpose, the T.T. being re-disbursable at Dhaka by FAD, Head Office.

16.1 When required a letter should be written to the Bangladesh Bank or Sonali Bank requesting them to discount T.T. specifying the amount of the T.T. to be discounted under signatures of the authorized officer.

16.2 A telegram will be sent by the branch to FAD requesting them to reimburse the amount of T.T. discounted to the bank concerned. On receipt of the telegraphic advice from the branch concerned FAD will

2

Withdrawalof CashfromBanker:

TelegraphicTransferDiscounting

arrange for the reimbursement to Bangladesh Bank or Sonali Bank as the case may be.

17. A Register (B-24) of all-important keys, including those of the Cashier must be kept at every branch. This Register will contain full particulars of the keys of the branch and will show where the originals and the duplicates are to be found. The entries in the register will be initialed by the official holding the original key and the Manger. The entries should’ also be initialed by every incoming Manager, whenever there is any change of Manager. “Important keys” include keys of strong- room, doors and safes and cabinets therein containing cash, gold, ornaments, banks’ and correspondents’ control documents, articles in safe deposit, documents of value to the Bank, revolver and gun licenses etc.

18. None of the custodians is authorized to leave the ‘Important keys’ with any officials without the written approval of the Manager and Manager without the approval of the competent authority. Such approval should be recorded in the Key Register (B-24) by making proper entry under due authentication of the Branch Incumbent.

18.6 When the strong-room keys and other keys are kept in the personal safe of the Manager (or the 2nd officer jointly in-charge of cash), the key of the safe in which they are lodged must not leave his custody. Sub-ordinate employees of other unauthorized persons must never be allowed to handle the keys of the strong-room and safes, for any purpose whatsoever. Should this by any chance occurs, the circumstances must be immediately reported in full to Head Office so that necessary steps may be taken to safeguard the Bank’s interest. A small safe may also be given to the 2nd Officer/Cash in-Charge for keeping the strong-room keys, important documents etc. and others keys held by him. The key of this safe must not leave his custody. The important keys should never be given to any unauthorized officer or person nor made visible during the course of use and custody at any moment.

18.2 In the event of absence from duty, the 2nd Office/Cash-in-Charge may, subject to the approval of the Manager, authorize his senior-most assistant to perform his duties.

18.3 Great care must be taken with all locks and keys. Any important key Showing signs of serious wear should be send to Head Office in a sealed packet in order that a new one may be made the duplicate being used meanwhile. No important key may be made, and, except in an emergency, no repair to any important lock may be carried out by local mechanics without the prior permission of Head Office.

19. The duplicate keys of the strong-room and the duplicates of all other important keys must be greased and labeled and put into a strong wooden or tin box.

19.1 The box containing the duplicate keys of the branch must be locked or otherwise secured, wrapped in waterproof cloth and sealed by the Manager with the branch seal in the presence of the 2nd Officer/Cash-in-charge and

2

Custody ofKeys:

Custodiansof ImportantKeys:

DuplicateKeys:

the supervising official concerned. The packet will be labeled with the name of the branch.

The box will then be signed by the Manager and deposited at the nearest branch of SIBL/the Bangladesh Bank or Sonali Bank or any other Bank of good standing as Head Office shall instruct. If the duplicate keys are to be deposited by one branch with another near by branch of the Bank, the same procedure should be followed. In all cases, the relative safe deposit receipt will be entered in the Branch Documents Register (B-26) and kept with the other documents in Branch documents file. The acknowledgement in this regard must be preserved along with the duplicate copy of the forwarding letter duly signed by the Manager & 2nd Officer.

19.2 Duplicate keys must be removed from the safe deposit at every inspection / audit of the branch and whenever there is change of Manager, 2nd Officer/ Cash-in-Charge. The reason for and the duration of their holding after withdrawal will be recorded in the Key Register (B-24) . The packet must be opened by the Manager in the presence of the 2nd Officer & Cash-in-Charge of Cash who will themselves break the seals on the packets containing their keys. When the duplicate keys have been examined, they may be taken into use and in their place the originals may be deposited in the packet in accordance with previous para. If, however, the duplicate keys are more worm than the original, the duplicates will be re-greased and re-deposited.

19.3 Every effort must be made to return the packet for safe deposit in the same day, failing which the steps taken for its safe keeping must be reported to Head Office/Zonal Office. When the packet is held by another branch, the dates of its withdrawal and redeposit will also be advised to Head Office/ Zonal Office by that branch.

19.4 The duplicate keys of all other cabinets, almirahs, boxes etc. will be greased and labeled showing the names of the official holding the originals thereof and locked in a box, the key of which will be kept by the Manager or the authorized officer and kept in the strong-room. Particulars of these keys will be recorded in a separate section of the Branch Keys Register.

20. All concerned are advised not to keep any amount in their vault/counter exceeding the cash limit covered by the insurance taken for their respective branches and in case of remittance per single carry limit must not be exceeded.

20.1 All officials should not go to prayer at a time keeping the cash unsafe rather it may be performed by phases.

20.6 No doubtful entry of stranger shall be allowed inside the branch.20.7

20.8 Control over computer operations should be ensured .Daily computer sheets should invariably be checked by the respective authorized officer other than the computer operator, from the vouchers.

2

CautionaryNotes:

20.9 Key of vault/safe/Almirah must be under the custody/possession of the respective authorized custodian and be used by them in every deposit/withdrawal duly recorded.

2