Saving & Third Party Fund Management Manual Final

Oromia Credit & Saving Share Company
Oromia Credit & Saving Share

Company
[OCSSCO]
Saving & Third Parties’ Fund

Management Policy & Procedures
Manual
Jan., 2014
Finfinnee
1
Credit Supply Manual (Saving Products)
Table of Contents
Introduction ..................................................................................................................................... 4
I. Vision of Credit Supply and Delivery Core Process ........................................................ 4
II. Mission of Credit supply and delivery core process ................................................... 4
III. Major objectives of Credit supply and delivery core process .................................... 5
IV. Values and Principles of Credit supply and delivery core process ......................... 6
General Values ................................................................................................................................... 6
Individual Values ............................................................................................................................... 6
Strategic Values ................................................................................................................................. 6
Operational Values ............................................................................................................................ 7
I. Importance of Credit Supply and Delivery Core Process Manual ............................... 7
II. Binding rules, regulations, policies and directives ..................................................... 7
III. OCSSCO’s Credit Supply & Delivery Core process Manual Objectives ................. 8
1. Compulsory savings ................................................................................................................ 11
2. Voluntary Savings.................................................................................................................... 13
3. Voluntary Saving Principles .................................................................................................. 13
4. Voluntary Saving Types ....................................................................................................... 14
4.1. Loan Customers Voluntary Saving................................................................................... 14
4.1.1 Loan Customers voluntary saving Mobilization Policies and Procedures .............. 15
4.2 Non loan Customers Savings.............................................................................................. 17
4.2.1 Handhura Saving (Minors Saving) .................................................................................... 17
4.2.1.1 Major Handhura Saving Policies............................................................................... 17
4.2.2 Soorama saving ..................................................................................................................... 19
4.2.3 Fixed Time deposit................................................................................................................ 20
4.2.4 Coin Box Savings .................................................................................................................. 22
2
4.2.4.1 Coin box management and collection procedures .................................................... 22
4.2.5 Door to door saving .............................................................................................................. 25
4.2.5.2 Verification of Savings that are collected at sites ................................................. 27
4.2.6 Current/Checking Account ........................................................................................ 27
4.2.7 Non-interest Bearing Saving Account ...................................................................... 31
4.3 Capitalization and change of interest rate on savings ................................................ 31
4.4 Interest incentive for loan customer depositors ........................................................ 31
5 Summary of saving types and their features ................................................................. 33
6 Saving account Opening Process Map ............................................................................. 40
7. Procedure and time needed for Saving Account Opening ........................................... 41
8. Saving Withdrawal ................................................................................................................ 43
8.1 Borrowers’ Saving Withdrawal ....................................................................................... 43
8.2 Non-borrowers’ saving withdrawal ....................................................................................... 44
8.3 Major requirements to be fulfilled for voluntary saving withdrawal ............................ 44
9. Float fund size at branch level........................................................................................... 45
10. Closing Saving Accounts ................................................................................................. 46
11. Saving Withdrawal processes and time needed ............................................................. 46
12. Third party/partners fund management..................................................................... 47
13. Saving Mobilization Strategies ....................................................................................... 47
13.1 Branch office level................................................................................................................. 47
Promotion by CSO................................................................................................................. 50
13.2 Zonal Offices .......................................................................................................................... 52
13.3 Promotion at Head office level ........................................................................................... 54
3
I. Introduction
Business Process Reengineering (BPR) is defined as elemental rethinking and

radical redesigning of the business processes in order to achieve remarkable
improvements in critical measures of performance like cost, service, quality, and
speed. In organizations where BPR is implemented, jobs are organized based on
identified and named processes that yield a certain outcome.
Thus, OCSSCO has studied BPR to overcome the challenges that hinder its
growth and to change its service delivery modes and quality radically as well as
achieve remarkable improvements in cost, service, quality, and speed through
eliminating hand offs from its service provision processes. OCSSCO names its
core business process as “Credit Supply and Delivery Core Process’’ and hereby
introduces new service delivery policies and procedures.
In the newly designed process OCSSCO can satisfy and meets the needs of both
customers and stake holders and it is expected to deliver speedy, transparent,
and customer focused financial services with cost effective strategies. Thus, this
working manual is, therefore, prepared to facilitate and enable service providers
of the company to standardize and simplify the service delivery procedures in all
branches of the company.
II. Vision of Credit Supply and Delivery Core Process

To make OCSSCO financially self sustained model MFI and through effective &
efficient service provision enhancing the livelihood of low-income people in the
entire Oromia.
III. Mission of Credit Supply and Delivery Core Process

To provide need based financial services, widening and expanding access to
sustainable and cost efficient financial services to low-income rural and urban
people of Oromia.
4
IV. Major objectives of Credit Supply and Delivery Core Process
 To fill the financial needs of those at bottom line who are in need of the
services but unable/denied to access from other sources due to stringent
requirements
 To provide sustainable and cost effective saving and Credit services to Micro
and Small Enterprises to enable them create their own job and contribute to
the regional economy in particular and the national economic growth and
transformation in general.
 To provide sustainable and cost effective saving and credit services to the
solidarity group based loan customers and individual microloan borrowers to
fill their financial need gaps and enable them contribute for the regional
economy in particular and national economic growth and transformation in
general.
 Empowering women in the region economically through provision of micro

financial services
 Contributing to the struggle against poverty and unemployment in the region

through provision of sustainable financial services,
 Enhancing the saving culture in the region and mobilize more deposits to
finance feasible projects and create more job opportunities in the region
 Encouraging women and youths to participate in creating household level

jobs and generate income so as improve the livelihood of the community in
the region
 Professionally manages partners and third party funds and contribute in

meeting their intervention objectives
5
V. Values and Principles of Credit Supply and Delivery Core

Process
The following values and principles should be maintained by core process staffs.
These values and principles are general, individual, strategic and operational
and are consistent.
General Values
 Transparency
 Zero tolerance to irregularities, delinquencies and embezzlement.
 Commitment to serve and satisfy the client.
 Commitment to work in line with working manual
 Enhancing women participation
Individual Values
These are values, which knitted together individuals and the company.
 Hard working and completeness,
 Trustworthiness,
 Prudence,
 Good personality,
 Loyalty,
 Confidentiality,
 Accountability,
 Team work/ spirit,
 Impartiality and
 Continuous improvement
Strategic Values
 Dedication to clients’ quality service,
6
 Participatory,
 Commitment to excellence and
 Commitment to quality and professional competence
 Enhancing women participation and empowerment
Operational Values
 Customer focused
 Mission focused
 Regular and intensive monitoring and follow up,
 Effective and efficient management,
 Cost effectiveness
 Binding to rules and regulations,
 Continuous learning from experiences and improving and
 Timely decision and reporting
VI. Importance of Credit Supply and Delivery Core Process

Manual
This working manual sets a clear guideline and procedure of delivering
different financial services to the target customers. It is designed for all
Company’s financial products so as to standardize the service in all operational
branches. It serves as a reference and binding policy for Company’s staff to
deal with clients and stakeholders.
VII. Binding Rules, Regulations, Policies and Directives

In addition to this credit supply and delivery core process manual, there are
also pertinent proclamations, rules, regulations, policies and directives issued
to govern microfinance institutes and financial institutes by the regulatory
body National Bank of Ethiopia (NBE). Thus, Company’s staffs at all layers
7
should take into account these polices, rules regulations and directives issued
by the NBE and others while implementing the credit supply and delivery.
VIII. OCSSCO’s Credit Supply & Delivery Core Process Manual

Objectives
This manual contains all procedures and workflows those can add values to
clients satisfactions in financial service delivery so as to attain Company’s
vision, mission and objectives. It also outlines the core values, which govern
the manner in which OCSSCOs’ all financial products are structured,
approved, delivered and managed. This manual is also meant as an important
guide in enabling branch staffs more than else one, who are the front line in
the provision of financial services to contribute towards the overall objectives of
the Company.
The general objective of this manual is therefore to insure Company’s

successes by achieving maximum customers and stakeholders’ satisfaction so
as to achieve the stretched objectives.
Therefore, this operational manual has the following main objectives:
 To create and put in place short, clear and uniform credit & savings
delivery model and make these procedures transparent,
 To deliver credit & savings services targeting both small and

microenterprises and microloan borrowers efficiently, effectively and
increase outreach in order to respond the credit demand in the region
 To launch fast, client oriented and cost effective credit & savings delivery
system that can effectively address clients and stakeholders need.
 To shift the Company to the saving led institute through introducing

different strategies that enables the company to mobilize more savings.
8
Introduction to Saving
Throughout time, all around the world, households have been saving in cash or
in kinds, regardless wealthy as insurance against emergencies, for religious &
social obligations, for investment & for future consumption. Here, saving means
setting aside a fraction of income for future use, thereby transferring resources
over time. The importance the poor attach to savings is also demonstrated by
many resourceful but often costly ways they find to save in terms of accessibility
and simplicity of the procedures. As a result, most conventional financial
institutions fail to meet the needs the poor in a suitable and cost-effective
manner. As a consequence, when poor households’ are provided a safe, easily
accessible opportunity to save, their commitment to saving, and the amounts
they manage to save, are remarkable.
Currently, savings have raised to the top of the Microfinance community’s

agenda. Previously Microfinance Institutions (MFIs) viewed savings as the poor
relation and typically extracted savings from clients through compulsory
systems. Previously, there were prevalent and powerful perceptions that “the
poor cannot save”, thus compulsory savings systems often required members to
deposit small token amounts each week or month and levied more substantial
amounts at the source from loans. These compulsory savings were then often
“locked-in” until members left the organization. Compulsory savings generate a
loan guarantee fund for the MFI, but drive up the effective cost of loans. By
contrast, voluntary savings are a service from which clients can withdraw & on
which the receive interest. This note focuses on voluntary savings services.
Some Primary Motives for Public Savings Mobilization
A lack of savings facilities creates problems at three levels: (i) at individual level;
(ii) at the financial institution level; and (iii) at the national economy level.
At the individual level, lack of appropriate institutions at the required manner

such that good savings management, mainly in connection to savings
9
withdrawal, pleasant client handlings, time & cost-effective i.e. at most

convenient place to them walking a long distance either to deposit or to withdraw
and security manner on the ways to their residents. This is why most
microfinance clients did drop out.
Therefore, microfinance clients have withdrawn from some MFIs to access other
microfinance services or conventional banks where their savings are easily
available in emergency cases and to access enhanced services from MFIs, i.e.
ones that offer a wider range.
The above saving related facilities problems have forced the individual to rely
upon in-kind savings such as savings in the form of raw materials, animals and
gold or upon informal financial intermediaries, such as Rotating Savings and
money-keepers. These informal savings options, however, do not offer a
combination of security of funds, ready access or liquidity, positive real return
and ease in order to meet the various needs of the particular saver. This holds
true in the cases of many savers in our region.
At the institutional level, those MFIs lacking effective savings mobilization

strategies are unable to increase their outreach to a significant number of clients
on a regional or national scale. In addition, those MFIs that do not mobilize
savings have not attained full financial self-sufficiency, independently covering
their expenses for operations, loan loss, cost of funds and inflation with their
revenues which is again true for OCSSCO.
Throughout the world, MFIs have often experienced that exclusively offering
credit services can lead to undue dependency on external sources of financing.
This dependency can cause the MFIs to concentrate on the demands of the
donors rather than on the demands of potential clients, especially potential
savings clients. Once again this is also a factual phenomenon for OCSSCO.
10
At the level of the national economy, high levels of savings increase the amount
of national resources and decrease the need to resort to foreign indebtedness in
order to cover domestic investment and consumption demand. Numerous
countries with low internal savings rates must borrow from abroad, which
results in a debt service burden. This clearly underlines the importance of
savings mobilization to sustain economic growth with national financial
resources.
1. Credit Supply Manual (OCSSCOs’ Saving Products)

1.1 Types of Saving Products
In general terms, the saving products of the company comprise two types,
namely compulsory and Voluntary Savings.
Compulsory saving is a mandatory to access any Company’s loan. It is

categorized into two parts i.e., pre & post loan savings. MSE, General Purpose,
Housing & individual business loans are required pre loan savings while group
based loans are also required pre loan saving but be deducted on loan
disbursement sheet from the approved group based loan. The other
compulsory saving is monthly saving for all Company’s loans.
Voluntary saving is a type of saving that everybody can deposit at OCSSCO,

being loan borrowers, non-borrowers, organizations/institutions and the
communities at a large. To open a voluntary saving account, the minimum
amount is Birr 10 (ten). Voluntary saving is withdraw able at any time during
the working hours of the Company based on terms and conditions put on the
passbook of savers and under withdrawal part of this manual.
1.2 Compulsory Savings

Compulsory Saving is one of the pre conditions or requirements to access
OCSSCO’s loans. The first compulsory saving is a pre loans saving which will
be deposited prior to accessing loans as a precondition based on the types of
11
the loans that to be approved & disbursed. All OCSSCOs’ loans require pre
loan savings which will be deposited before accessing loans except for group
based loans which will be deducted from the approved loan.
The second compulsory saving is a monthly (post) compulsory saving which

will be deposited monthly within the agreed loan terms. All compulsory
savings are none withdraw able until the loan is fully repaid.
a) Group Based Loan Compulsory Saving

Group based loan saving is a deduction of 5% from the approved group based
loan & is deducted on loan disbursement sheet (LDS) which to be disbursed to
an individual group loan borrower within the group.
b) Monthly Group based loan Saving

Monthly saving is a monthly deposit which will be made by every group based
loan borrowers on monthly clients meeting. The minimum amount set for
monthly group based loan saving is Birr 25.00 within the loan term.
c) MSE Compulsory Saving

MSE compulsory saving is also categorized into two; the pre and post loan
savings. The pre MSE loan saving shall be 20% or 15% depending on the MSE
purposes of the loan which will be deposited at least two months ahead of
accessing the loan. This MSE pre loan saving is held for those MSE who will
be borrowed with the collateral of their respective municipality or Woreda
administration. The other compulsory saving for the MSE is monthly saving
which is Birr 100.00 that to be deposited monthly at the lending branch.
d) General Purpose Loans (GPL) Compulsory saving

General Purpose Loan (GPL) is one of Company’s loan products which is
mainly designed for government and nongovernment employees. As for other
company’s loan products, GPL is also required pre & post compulsory savings.
The amount of GPL pre loan saving is 10% of the approved loan that to be
12
deposited any time ahead of accessing the loan and Birr 100.00 post loan
monthly saving.
e) Housing Loan Compulsory saving

This housing loan requires pre & post compulsory saving. The amount of
housing loan pre loan saving is 10% of the approved loan that to be deposited
any time before accessing the loan and Birr 100.00 post loan monthly savings
1.3 Voluntary Savings

OCSSCO provides different savings products such as:
 Recurring/pass book deposits,
 Fixed time deposits,
 Coin box deposit
 Retirement savings
 Handhura and Soorama (minor and old age savings)
 Noninterest bearing saving and
 Current account savings.
1.3.1 Voluntary Saving Principles

 Voluntary saving is withdraw-able during working hours and day without
any restrictions and pre conditions upon the requests of the depositors.
 Voluntary saving depositors are concerned with stability, management
systems, capacity of managing liquidity and other financial requirements
of the deposit taking institutes. Thus, all OCSSCOs’ branches are required
to meet all conditions to build credibility and confidence among the
depositors.
 Better liquidity management ensures trust and credibility of the customers
on meeting their withdrawal demand up on request without dalliance. The
core process staff at different level in general and the branch staff in
particular should always stand by to respond to the withdrawal demands
of the depositors so as preserves customers’ trust.
13
 Always plan to cover the branch loan demands from the voluntary savings
and therefore, makes use of all possible sources of savings
 Identifying, predicting and planning for peak mobilization and withdrawal
seasons, events and occasions for better liquidity position and
management.
 Preferably invest the saving mobilized on short term loan portfolios with
regular monthly installments so that there will be liquid cash to meet
obligations
 Make deposit all idle money in bank saving account except the amount
that the branch wants to cover the expenses and disburse within short
period of time.
 Deposit the idle money that to be wanted immediately and within short
period in bank current account
 Always replenish and maintain the float fund balance that is approved for
the branch to meet the possible withdrawals.
 OCSSCO does not prefer keeping too much cash idle at it pays interest to
sources from which the funds have been raised.
The core process staffs in general and the branch staffs in particular are
required to use their skills and technical know-how to manage liquidity risks
and always exercises how and where to lend the amount mobilized from
voluntary savings.
1.3.2 Sources of Voluntary Saving
1.3.2.1 Loan Customers Voluntary Saving

Loan customers’ voluntary saving is considered as the simplest and easy sources
because:
 Intensive awareness and orientation about voluntary saving will be

provided at the time loan customers are organized and trained for the
loan,
14
 The loan customers know more about the Company’s culture, policies,
capacity and credibility than any other targets,
 The regular and frequent contact with the loan customers eases the
communication and collection of voluntary saving mobilizations,
 The loan customers are large in number. Consequently, huge amount of
voluntary savings can be mobilized at a time from this source.
 The branch staff knows the loan customers’ peak seasons for extra money
which more eases and facilitates more saving mobilization
Thus, the core process staffs particularly the branch staffs are required to
continuously promote, encourage, motivate and initiate loan customers so that
able to mobilize more voluntary savings from loan customers.
Loan Customers Voluntary Saving Mobilization Policies and

Procedures
 Promote the ideas of savings and speak about voluntary savings during
group formation for group based loans and organizing MSEs as well as
when meeting other loan types customers
 Regularly communicate the benefits of voluntary savings in every
occasions, events and meetings. Communication cannot be an end,
positively influence the loan customers to save voluntarily.
 Arrange special events and schedule to mobilize more savings during high
income seasons of loan customers,
 Keep saving data of customers secrete but, create a sense of competition
among group members on the amount that to be voluntarily saved by each
group member
 Group based loan borrowers’ voluntary saving is normally collected during
monthly meeting day together with monthly group saving collections. It is
possible the loan customers can also save any time at branch office.
 If the voluntary savings that to be mobilized from the loan customers is
uniform in amount at group/center level, the branch can easily plan its
15
liquidity and also smoothes the cash collection control aspects. Therefore,
the core process staff in the branch or the CSO who organize the group is
required to encourage the group members toward saving uniform amount
at group/center level voluntarily.
 Accordingly, if all group loan types customers (self organized, primary
cooperatives, SHG/VSLAs, Afosha backed groups and others) agree to save
equal amount (uniform size) monthly:
 Prepare group saving collection sheet on which both monthly
compulsory and voluntary saving deposits are registered by the name of
each group members.
 Issue a cash receipt voucher by the total sum of both monthly
compulsory and voluntary savings that to be collected from the group.
The CRV shall be prepared by the name of the group and given to the
group chair person for evidence and documentation,
 The finance officer/accountant posts the balance of compulsory and
voluntary savings of group members on individual client saving ledger
while the CSO posts on client pass book.
 If all loan group members decide to save different amount prepare
group saving collection sheet and register only the monthly compulsory
savings of individual group members that the members deposits. Issue
one CRV at group level by the name of the group for the total amount
collected as monthly compulsory savings,
 Issue separate CRV by the name of each member for the amount
individually saved voluntarily,
 Other non group loan customers like MSEs, individual or General Purpose
and housing loan customers make saving at branch offices. However,
monthly collections of MSEs can be made at one stop service center in the
towns where there is strong one stop service center that can deliver full
financial service packages. The branch office shall issue a CRV
16
individually for the amount that to be deposited by the non group loan
customers.
1.3.2.2 Non loan Customers Voluntary Savings

OCSSCO also delivers saving services to individuals, different institutions like
organized or individual business enterprises, government, non-government,
Associations, Afoshas (Idirs) and other organized depositors.
a) Handhura Saving (Minors Saving)

It is a saving product that targets parents and other relatives interested to
save for their children or children under their guardianship (protection) for
future expenditure, school fees, and wealth. In addition to wealth
accumulation for future uses, Handhura saving is also used as one of the tools
to educate the community including the children about savings and also used
to promote saving culture early in their childhood.
 Targets:
 All loan customers can be recruited to Handhura savings as it is easy and
cheap to convey the message and easy access to motivate the customers
during the frequent contacts.
 School children and school community including TVET, colleges and
universities
 The community at large and Afosha (Idirs) members
Major Handhura Saving Policies

a. (Handhura) Minor saving is a regular savings account that is opened for
minors/child and to be opened either in the minor’s name or jointly with a
parent.
b. The minimum account opening amount for Handhura/Child saving is Birr
10 (ten) and minimum regular deposit per transaction shall be also at
least Birr 10 (ten) monthly.
17
c. Handhura customers can save more than ones in a month period of time
or can save above the minimum balance whenever she/he wants.
d. The minimum deposit time for Handhura saving shall be 5 (five) years and
OCSSCO shall pay progressive interest as indicated below:
S/N Years of deposit Interest Rate
1 >=5years but less than 10 years 6%
2 >=10 years but less than 15 years 8%
3 >=15 years but less than 20 years 10%
4 >= 20 years 12%
e. The agreement of Handhura saving should be renewed when the

agreement time is matured and elapsed.
f. The account owner of Handhura saving/parent and/or child should
physically appear at the branch before the agreement date is elapsed and
renew the agreement.
g. If the account owner does not renew the agreement timely, the deposit
shall be considered as normal deposit and OCSSCO shall pay normal
interest rate until the account owner appears and renew the agreement.
h. If client breaches the agreement and decides to withdraw early before the
agreement years, the interest to be paid on the deposit shall be the normal
interest rate.
i. The account owner parent can access/withdraw from the account any
time while the child is restricted to access the account until the child is
age of 18 and above.
j. In case of the death of the parent, the sole owner of the deposit shall be
the child (the one to whom the account is opened) and the child can
access the account for withdrawal after the age of 18 without any
additional requirements.
18
k. But due to the death of the parent of the child, the legal guardian of the
child can withdraw/access the account before the child is getting age 18.
The guardian should present the legal guardianship evidence for the child.
l. OCSSCO shall pay the contractual interest rate incase of the death of the
parent/child without considering the fulfillment of the minimum agreed
time, if withdrawal is requested by one of the owner of the account (parent
or the child if he/she is above age 18) or the legal Guardian of the child.
b) Soorama saving
Soorama” as a long term contractual saving is designed to mobilize savings from
the people during their active age and when they are earning more income that
to be deposited with special interest returns and to be withdrawn for
investment, creating family or own jobs or to cover future planned or unplanned
expenditures.
a. The minimum account opening amount for Soorama saving is birr 10 and
minimum regular deposit of birr 50 monthly.
b. The Soorama customers can save more than ones in a month period of time
or can save above the minimum balance whenever she/he wants.
c. The agreement of Soorama saving should be renewed when the agreement
time is matured and elapsed.
d. The account owner of Soorama saving should physically appear at the
branch before the agreement date is elapsed and renew the agreement.
e. If the account owner does not renew the agreement timely, the deposit shall
be considered as normal deposit and OCSSCO shall pay the normal interest
rate that to be paid on other normal savings until the account owner
appears and renew the agreement.
f. The minimum deposit time for Soorama saving is five (5) years and OCSSCO
pays progressive interest as follows
19
S/N Years of deposit Interest Rate
1 >=5years but less 6%

than 10 years
2 >=10 years but less 8%

than 25 years
3 >=25 years 10%
g. If the Soorama saving client breaches the agreement and decides to withdraw
early before the agreement years, the interest to be paid on the deposit shall
be the normal interest rate.
h. OCSSCO shall pay the contractual interest rate incase of the death of the
account owner without considering the fulfillment of the minimum agreed
time, if the legal heir of the deceased customer requests withdrawal before
the agreed time is matured.
c) Fixed Time deposit

Fixed time deposit is a type of deposit, which is deposited for a certain agreed
period of time at pre agreed interest rate that to be paid if only withdrawal is
made after the agreed time.
a. The fixed time deposit customer shall be given signed and stamped deposit
certificate and CRV in regular branches while signed and stamped deposit
certificate and deposit slips in the micro banks upon receiving the deposit as
evidence of collection,
b. The maximum period for fixed time deposit shall be two years but it is
subject to renewal every two years,
c. The depositor should physically appear to the branch office to renew the
agreement for the next periods,
d. If the depositor does not appear to renew the agreement before or on the last
date of the agreement, OCSSCO shall consider the deposit as normal deposit
and starts to calculate normal interest rate after the agreement date is
elapsed,
20
e. If the deposit is renewed for the next periods, new contractual agreement
shall be made with new contractual agreement options,
f. The minimum amount that is to be deposited as time deposit is Birr
30,000.00 and the minimum period for deposit is 9 months while the
maximum period shall be two (2) years which is subject to renewal every two
years. But the minimum deposit period can be reduced to 3 months if the
amount to be deposited is greater or equal birr 300,000.00,
g. The following table shows the minimum period of accepting fixed time
deposit, the minimum amount and the interest rate to be paid on the time
deposits,
Options Minimum Amount Deposit Time Interest
1 30,000-299,999 9-15 months 5.15%
2 30,000-299,999 16-24 months 5.25%

3 >=300,000 3-9 months 5.15%
4 >=300,000 10-15 months 5.25%
5 >=300,000 16-24 months 6%

h. OCSSCO shall not pay the contractual interest if the depositor
withdraws, full or partial amount of the deposit before the agreement
time but shall pay the normal interest,
i. Whereas, due to the death of the depositor, if the legal heir decides to
withdraw full or partial amount of the deposit before the agreed date,
OCSSCO shall pay the contractual interest rate for the periods the
balance is deposited,
j. Ones the account is accessed by the legal heir due to the death of the
account owner, the previous contractual agreement shall be
terminated and the heir can make new agreement,
k. The time deposit certificate can be used as collateral for the loans to be
given by OCSSCOs’ same branch either to the holder or third party as
21
long as he/she fulfills the loan criteria that are stated in the loan
documents. If the certificate is held as collateral, withdrawal shall not
be allowed until the loan guaranteed by the certificate is fully repaid,
l. The time deposit certificate is returned and voided upon the
termination of the agreement,
d) Coin Box Savings

It is a saving service that will be delivered to any individual who cannot
physically appear to OCSSCO branch office to deposit due to the nature of
their business. The followings are the general directions in offering the deposit
box:
a. The loan customers, petty traders, small shop owners, mini cafeterias, taxi
drivers and assistant and etc can be the major target for the coin box
savings
b. OCSSCO rents coin box at the subsidized price of birr 75.00 (the rental fee
is subject to change) for indefinite period of time as long as the individual
remains OCSSCOs’ coin box saving customer.
c. The box shall remain with the customer as long as he/she saves
continuously.
d. The price of the box is paid ones when registering or the price shall be paid
with maximum of 5 installments.
e. The minimum account opening amount for coin box saving is birr 10.
f. The customer cannot change or transfer the box to third party without prior
permission of OCSSCOs’ branch
g. OCSSCOs’ branch shall collect the box, if the customer discontinues saving
for three consecutive months.
Coin box management and collection procedures

 Branch core process team shall give case load of the coin box savings that to
be mobilized by each CSO in the branch,
22
 The Branch manager shall divide among the CSOs the sites of the targets in
which collections of coin box savings is made,
 CSO shall handover (receives) the coin boxes that enables him/her to
achieve the quota given,
 The CSO shall identify the coin box depositors from the sites (target places
he/she is assigned),
 The CSO shall provide necessary orientations to identified potential
customers. The content of the orientation should at least include:
 About OCSSCO
 Financial services of OCSSCO and its features (voluntary & compulsory

savings, loan types, insurances, group liability and individual loans, coin
box customers loan and etc.)
 About the uses of savings and coin box savings
 Account opening procedures and coin box saving collection procedures)
 Coin box policies and the handling of coin boxes
 Coin box loan and etc.
 The CSO shall produce coin box saving agreement and opens account to the
customers at their working sites(use coin box handling agreement format)
 The CSO shall provide signed and stamped pass book as well as locked coin
box to the customer and remind the customer to prepare 2 passport size
photographs for the next appointment.
 The CSO should also agree with the customer the date on which collection
shall be made at the working place of the customer
 The boxes should be registered and given identification number by the name
of the customer
23
 The CSO shall collect the photograph during the next visit/appointment day
and ends the process of providing photograph attached pass book.
 One of the keys of the urban coin box customers box is kept under the
custody of the branch manager while the other key is kept under the
custody of the assigned CSO
 The urban coin box saving collection shall be at branch office. Thus, the
customers should informed the day and the time they should bring the box
in order to reduce queues that could be created at branch offices.
 The rural coin box saving collection shall be made at the center/group
meeting places where the CSO conducts monthly meetings.
 The rural coin box customers should clearly communicate the time and
place where the meeting is conducted.
 The coin box collection is made every two weeks in urban and while
collection in rural shall be made monthly when monthly meeting is
conducted.
 The CSO should physically visit his/her urban coin box customers before
the agreed collection day is approaching to motivate more deposits.
 One stop service center can also used as coin box collection center, if it is
convenient to customers. The collection shall be made by the CSO who shall
be assigned in the one stop service center.
 The customer opens the box and counts the coins.
 The CSO shall provide CRV for the amount he/she has collected and posts
the balance on the customers’ pass book.
 It is prohibited to open the coin bank in the absence of the saver.
 Discourage the client, if requests to take some amount from the box saving.
 Lock and hand over the box, say good-bye remind the client the next
appointment and encourage to save more again,
 The Coin Box saving customers shall be provided special loan that indicated
in the loans manual,
24
e) Door to Door Saving Strategies

OCSSCO uses different strategies to promote and introduce its saving services.
Among which, door to door saving mobilization is a face to face promotion,
communication strategy and collection method through which the public is
informed and invited to be a customer of savings as well as able to deposit
without leaving his/her home or without travelling away from the work places.
Door to door saving targets and collection procedures:
 Branch core process team identifies the sites in both urban and rural in
which door to door saving mobilization will be conducted,
 Discuss with the CSO and divide the sites among the CSO or core process
staff and fix permanent mobilization schedule for each CSO or other core
process staff,
 Door to door saving is mobilized by CSO who is assigned for the site and
cashier/assistant cashier who will collects the money, issues CRVs and post
the transactions’ on customers pass book.
 Before leaving to site for door to door saving mobilization CSO and
cashier/A/Cashier should get approval from the branch manager,
 The following areas can be used as door to door saving mobilization target
area:
 Market places
 Religious places (mosques, churches, and others)
 Public meetings and gatherings
 Home to home communications and etc.
 The door to door saving mobilization and communication with the people
should be conducted in the following manner:
25
 The staff should properly dress including the T-Shirts or capes that are
prepared for same purpose if any
 Should put on OCSSCOs’ identity card badge
 Respect community’s culture, tradition, norms and other customs

whenever travelling to the individual homes, working places and religious
centers
 The followings are the main topics that to be discussed and promoted
during the door to door saving mobilization:
 Introduce yourself
 Show your I.D
 Communicate why you are there
 Introduce OCSSCO (ask whether they know it before)
 Introduce all financial products of OCSSCO
 Your communication should be attractive, cohesive, convincing and you

are required to be well versed
 Focus on and explain the features of each saving types that OCSSCO has
been providing (recurring/ pass book saving, Handhura, Soorama, time
deposit, retirement deposit, coin box savings and etc.)
 Explain the benefits of each savings, how these savings are collected and
withdrawn
 Give chance to the prospective customers to say something about the

products and ask which product fits with their need and convenient
 If the customer is convinced and decide to be a saving customer,

complete all requirements that needed in saving account opening
26
procedures (fill the form, provide pass book, issue CRV for what you have
collected, remind as photograph is required and the customer should
bring to the office during the next deposit time or the CSO collects the
photograph in place where it is suitable
 Ones the customer opens saving account, discuss, direct and decide how
and where to make deposit next time in the future.
Verification of Savings that are collected at sites

It is the branch managers’ responsibility to verify and confirm whether all
savings collected/ mobilized out of office (monthly compulsory and voluntary
client savings, coin box and others) are correctly reported, issued CRVs and
ledgers are updated in order to avoid any fraud or misuse of the services. To
confirm:
The auditor should regularly confirm the amount reported on CRVs against the
amount posted on the clients’ pass book and checking the records against what
the customers are actually deposited
f) Current/Checking Account
OCSSCO provides current/checking account/ services on which the account
owner can order payments to the check bearer. But unlike other checks, the
existing OCSSCOs’ check is used only for internal purpose that to be used for
cash order transactions that is to be made between OCSSCOs’ branch in
which the account is opened and the account owner in the branch. The
followings are major policies and procedures for providing Current/Checking
account service:
 The customer presents signed & stamped letter of account opening request
that states the name of authorized signatories and attach renewed
business license or renewed work permits for NGOs, or if it is
27
governmental office, official letter signed and stamped by the head

(manager) of the office.
 The customer shall open current/checking account at initial account
opening minimum balance of birr 1000.00
 Two passport size photograph, valid ID, of the authorized signatories
should be submitted and specimen signature of the authorized signatories’
should be taken,
 The current account can be opened by one authorized person or by joint
signatories
 The signatories request new check by signing new check order slip that
attached on the check pad or writes official letter to request new check.
One check pad is given at a time.
 One of the authorized signatories’ collects a check with 50 or 100 leafs
that are numbered sequentially. The cost of the check is determined
periodically by head office. The branch directly deducts the cost of check
from the account and shall passé necessary journal entries on general
journal. (Refer the financial manual). Make sure that the cost of the check
is deducted and updated on the customers’ saving ledger and reported to
customer on the monthly statement of account.
 The account owner is advised to keep the blank checks in lock, never to
sign on the blank checks and other care should be taken on handling the
checks
 The account owner can order the payment to individuals. The name,
fathers’ name and grandfather name of the check bearer should be
properly written on the check
 The person to whom the check is written should come to the branch office
with valid ID and copy of the ID to withdraw the cash on the check.
 Withdrawal above birr 50,000.00 should be confirmed by additional letter
that to be signed and stamped by the account owner and the branches are
28
also advised to contact and confirm the account owner by telephone for
the withdrawal amount between Birr 20,000-50,000.
 The signature of the signatories should be same with the signatures on
specimen card.
 Cancelled, erased or corrected checks are not acceptable. The full name of
the bearer, amount, date and signature should be clearly written.
 OCSSCOs’ current check is non endorsable. The amount on the check is
paid only to the person whose name is written on the check.
 When the check is presented for payment, OCSSOs’ branch staff should
verify the sameness of the signatures on the check and specimen card
before processing withdrawal
 Confirm whether the account owner has at least equivalent balance to
effect the payment
 Deduct/update the ledger if the withdrawal is approved
 File the check properly for accounting records and future references.(refer
financial policy),
 If the account owner has no sufficient balance, reject the check and write
warning letter to account owner not to issue again checks without balance
in the account
 Current/checking account is non interest saving account. No charge is
made on the transactions to be made from current account.
 OCSSCOs’ check does not used to effect payments to organizations or
transfer the amount from the account owner balance to third party
individual or organizations’ account. The checks should be written by the
name of individuals/persons and to be withdrawn by cash.
 OCSSCOs’ branch should provide monthly account statement to the
account owner. The account statement should be given to the one of
authorized signatories and the branch should prepare book in which the
29
signatories sign on when receiving the monthly statement and receiving

new check.
 Use the following sample of statement of account and write the date of the
transaction on the ‘’date’’ column, write the type of transaction whether it
is ‘’deposit’’ or ‘’withdrawal’’ in description ‘’column’’, record or withdrawal
including cost of checks on the ‘’Debit’’ column and all deposits on
‘’Credit’’ column and the balance of the account after each transaction
(beginning balance plus the credit column minus the debit column) in the
‘’balance’’ column.
 The statement of account should state transactions that occurred during
the month and if there is no transaction during the month the beginning
balance at the beginning of the month is equal with the balance at the end
of the month.
 The statement of the account should be stamped and signed by the branch
manager.
 The monthly statements of all current account in the branch should be
prepared and completed at the beginning of five days of the new month
regardless of the requests that to be made by the account owner.
 The branch properly files all documents of the account owner
_____________________Branch
Statement of Account for_____________ month, year__________
Name of account owner____________A/C No.______________
Date Transaction Reference Debit Credit Balance
30
Prepared by_____________________ Approved by_________________
g) Non-interest Bearing Saving Account

It is pass book type of saving that is designed for customers who prefer to
open saving account without interest to be paid on the balance. OCSSCO
provides Noninterest bearing saving account service in the same procedures
of other voluntary saving types except provision of interest on the customers
balance.
2. Capitalization and change of interest rate on savings

a. OCSSCO calculates interest on monthly minimum balances and on the six
month, the accumulated interest amount shall be capitalized or
compounded on the principal deposit balance.(compounded twice a year),
b. OCSSCO always tries to pay competitive interest to its saving customers but
due to unforeseen and external reasons the interest rate that OCSSO is
paying can be subject to change,
c. OCSSCO notifies to its saving customers through internal notice, if change
is made,
d. The change is applicable from the day OCSSCO decides and so that the
previous agreements will not be affected by the change to be made.
2.1 Interest incentive for loan customer depositors

In addition to different returns that OCSSCO pays to different saving
products, the following special offer will provided to loan customers who fulfill
the following requirements:
31
OCSSCO pays 0.25% interest in addition to what it normally pays 5% for all
loan customers who voluntarily deposit minimum of Birr 200 regular
voluntary saving throughout the loan term and abstain from withdrawal of
the minimum balance i.e. (Birr 200 deposited in each month) until the loan
term is ended.
32
5. Summary of Saving Types and their features
S/N Saving service Target clients Amount to be Service Remark

type saved provider --
---CSO
1 Compulsory
saving
1.1 Group based Both Rural & Urban group based 5% up front and  No withdrawal to
compulsory saving loan borrowers Birr 25 monthly compulsory saving
until the loan is fully
paid by the group
members
 Monthly collection
will be made on
center meeting day
and place
1.2 *Cooperative Rural and urban cooperative *10% pre loan  No withdrawal to
guaranteed loan members guaranteed by saving that to be compulsory saving
and Cooperative deposited by the until the loan is fully
paid by the group
guarantor & Birr
* Afosha Backed Afosha members group based members
25 monthly per  Monthly collection
group based loan loan
borrower will be made on
center meeting day
and place


---CSO
1.3 *SHG/VSLG *10% of the loan  No withdrawal to
compulsory saving compulsory saving
to be deposited
until the loan is fully
by the paid by the group
members
SHG/VSLG
 Monthly collection
members & Birr will be made on
center meeting day
25 monthly per
and place
borrower
1.4 MSE compulsory Cooperative, Share Company, Plc 20% or 15% CSO and  No access to pre
saving and sole proprietorship MSE (depending on the Cashier & compulsory
borrowers type of MSE) of saving until the
loan is fully
the planned loan
repaid
as pre loan
saving that to be
made at least
within 2 months
&
Birr 100.00 as
monthly savings


---CSO
1.5 MSE Pre loan MSE client who access the loan 10% of the loan  No access to this
saving that the by house collateral as pre loan saving until the
loan is borrowed by saving loan is fully paid

house collateral
1.6 Salary based (GPL) Salary based loan borrowers 10% of the CSO and  No access to this
loan compulsory planned loan as Cashier saving until the
saving pre loan saving loan is fully paid
that to be
deposited before
accessing the
loan &
Birr 100.00
monthly
1.6 Housing loan Employee housing loan 10% of the CSO and  No monthly
compulsory saving borrowers planned loan as Cashier compulsory saving
per loan saving during loan term
that to be
deposited before
accessing the


---CSO
loan &
Birr 100.00
monthly
2 Voluntary saving
2.1 Loan customers Self organized and cooperatives Minimum of birr CSO and  Open access to
voluntary saving guaranteed loan borrowers, both 5 per transaction Cashier withdrawal at any
organized and individual MSE and 10 birr time except the
defaulted clients
loan borrowers, salary based account opening
loan borrowers, housing loan
borrowers
2.2 Non-contractual  Individual voluntary savers 10 birr account CSO and  Open access to
and non-loan opening and a Cashier withdrawal at any
customers minimum of 5 time but if above
10,000 birr pre
voluntary saving birr per
notification of
transaction withdrawal is
Institutional voluntary savers 50 birr account  Open access to
including business enterprises, opening and a withdrawal at any
government & non government minimum birr 10 time
institutions, associations, in each deposit
Afoshas etc… transaction


---CSO
2.3 Current Account  Licensed MSEs  Minimum CSO &  Open access to
saving 1,000 birr cashier withdrawal at any
 Licensed business persons account time
 Government & opening

nongovernmental org.  Accessible on
demand
 OCSSCOs’
check is
required for
withdrawal
 No minimum
and maximum
amount for
withdrawal or
deposit
 No interest to
be paid on the
deposit
2.3 Contractual Handhura savers like parents 10 birr account Branch  Withdrawal is
voluntary savings from both urban and rural areas opening and a manager, open as of the
engaged in any business, loan minimum of birr CSO and agreement or due


---CSO
customers of the company, 10 per Cashier to death of the
students, Institutions or NGOs transaction beneficiary or by
who are caring for children breaching the
contract
under their custody and other
interested individuals
Soorama savers like Laborers 10 birr account Branch  Withdrawal is

open as of the
both in urban and rural areas, opening and 50 manager,
birr per month CSO and agreement or due
farmers, government and non to death of the
Cashier
beneficiary or by
government employees, loan
breaching the
clients and other interested contract
individuals, NGOs or any third
party who is willing to deposit on
behalf of the account owner
Fixed time deposit savers like A minimum Branch Withdrawal is based on

Borrowers and Non- borrowers, 30,000.00 birr manager, the agreement or by
and 10 birr CSO and breaching the
government and non-government
account opening Cashier agreement
institutions, associations,
community groups, religious


---CSO
organizations etc
Coin box savers like Petty Advance payment Self service Open withdrawal access
traders, shoe cleaners, shop of 50 birr box and except those who are
lease price and collection is taking coin box saving
keepers, taxi drivers and their any saving made by attached loan
assistants, retailers amount regularly A/Cashier
or irregularly & CSO

Oromia Credit and Saving Share Company (OCSSCO)
3. Saving account Opening Process Map
Customer Understands Verifies client

Welcomes documents that
Service clients’ needs
clients are used for
Officer Cordially and offers
opening savings
product(s), account
describes
products
Helps clients
Opens the
complete savings
savings Writes clients’
A/C opening ID data after
option and
form and having been
assigns
specimen authorized by
account
signature card B/Manager
number
Helps prepare the Files account
deposit slip. Takes opening form,
client to the cashier photocopy of ID Say good-bye
with all required and other
documents to make to the client
documents and
initial deposit specimen
signature card
Complete savings Fill out the

Client Account opening
form and
initial
deposit slip and
specimen
Signature card make the initial
deposit
OCSSCO’s Saving Mobilization and Management Manual
40
4. Procedure and time needed for saving Account

Opening
 Output: Opening Saving Account
 Service Provider: CSO at branch office
 Time required: Maximum 25 minutes
S/n Activities Time needed

1 CSO receive client application 2min.
2  For organizational saving, receive Valid ID., two 5 min.
pass port size photographs of each
representatives and letter of representation
signed and stamped. The account could be
opened by at least two represented persons and
by the name of the organization
or
 For personal savings two photograph, and valid
ID
3 CSO Fills out opening form for the depositors with 3 min.
proper address, identification and other relevant
information
4 CSO takes signature/right hand thumbprint of the 3 min
depositors/representatives/ on the specimen signature
card (three at the front and one at the back of the card
of each representative). If the depositors use their
fingers other than right thumb it should be specified
on the opening form, specimen signature card
5 Finance officer/accountant assign saving account 5 min
number and other records on the accounts opening
register book and write representative clients’ name
41
S/n Activities Time needed

including grand fathers’ name and account number at
the back of each photographs and attach them on the
passbook and on each specimen signature card
6 Client signs on the application form and specimen 2 min
signature card on the space provided
7 Prepare cash receipt voucher by amount the customer 3 min.
brought to deposit
8 CSO pass I.D., cards, letter of representation, the cash 2 min
receipt voucher, specimen signature card, the
passbook and the ledger to the branch manager
9 Prepares fixed time deposit certificate to the clients’ of 2 min
fixed time deposit,
10 The branch manager also checks the documents, sign 2 min
and stamp by branch round stamp on the specimen
form, passbook and fixed time deposit certificate and
then passes to the branch cashier. For the fixed time
depositors, passbook is not given. Instead they are
given fixed time deposit certificate.
11 The cashier receives the amount written on the cash 2 mim
receipt voucher from depositor and signs in front of the
amount written on the passbook on the space provided
then give the original CRV /deposit slip and passbook
/ certificate for the depositor
Not
 Generally the maximum time to be taken to open new account should not
be higher than 25 minutes while the maximum time to be taken to process
deposit for already opened account should not be greater than 10 minutes.
42
 No saving collection is allowed outside office or at site except door to door

saving services that to be conducted under the regular schedule and to be
made by the prior approval of the branch manager and the other is group
loan borrowers’ voluntary savings in which its collection is made at center
meeting places.
5. Saving Withdrawal
5.1 Borrowers’ Saving Withdrawal

The maximum waiting time for withdrawal is 10 minutes as long as the customers
fulfill all requirements when appear for withdrawal.
a. The branch manager, branch Finance officer, and Branch cashier are
authorized to approve the saving withdrawals that are to be made in
branches while the branch internal auditor verifies and checks the accuracy
of the amount withdrawn against the depositor balance, signatories and
confirm the fulfillments of other withdrawal related activities and processes.
b. The Branch Finance officer and Branch cashier are authorized to approve
the saving withdrawals that to be made in branch in the absence of the
branch manager. But the branch manager should review the withdrawal
documents that made in her/his absence and confirm the accuracy of the
transaction when he/she is returned back to office. The branch internal
auditor verifies and checks the accuracy of the amount withdrawn against
the depositor balance, signatories and confirm the fulfillments of other
withdrawal related activities and processes
c. The branch manager and Branch cashier are authorized to approve the
saving withdrawals that to be made in branch in the absence of the Branch
Finance officer. But the Branch Finance officer should check the withdrawal
documents and all transactions that are made at her/his absence when
he/she is returned back to office. The branch internal auditor verifies and
43
checks the accuracy of the amount withdrawn against the depositor

balance, signatories and confirm the fulfillments of other withdrawal related
activities and processes
d. The branch assistant cashier shall be delegated for withdrawal if the main
cashier is not available for any reasons. In the branch where there is no
assistant cashier, the manager delegate one of the CSO in the branch until
the cashier returned back to the office. The branch cashier is also required
to review the withdrawal documents that have been made in her/his
absence and when he/she is returned back to office
5.2 Non-borrowers’ saving Withdrawal

a. All non borrowers’ non contractual voluntary savings like individuals, coin
box savers, organizational or associations savings can be withdrawn
immediately upon the clients’ requests and fulfillments of withdrawal
conditions unless the amount is significant and requires additional short
appointment to make sufficient fund ready
b. However, if it is contractual savings like Handhura or Soorama or fixed time
deposit the withdrawal time should be as indicated on the saving agreement
unless the depositor decides to breach/break the agreement.
c. If the contractual saving depositors decide to break the agreement, the
issues related with interest is performed according to the agreement
breaching policy that indicated under the interest payment of each saving
types stated above here in this document.
5.3 Major requirements to be fulfilled for voluntary saving

withdrawal
a. The passbook and identification card of the depositors must be presented
and shall be checked against the photographs attached.
44
a. The signature on the withdrawal form is also checked against the specimen
kept in the customers file,
b. The balance on the pass book and the saving ledgers should be checked
against the collection vouchers that indicated on reference column of the
saving ledgers,
c. All accrued interests if any recorded on the clients’ ledger should also be
posted to the clients’ pass book before the current withdrawal is deducted
from the balance
d. Withdrawal of saving by third party (non account owner) is not allowed
unless legally represented and legally mandated.
e. Organization, associations or any institutions saving withdrawal is made by
the officially authorized delegates or representatives that to be given by the
account owner organization or association or institution.
f. For the withdrawal of above birr 30,000.00, the account owner organization
or association or institution should support the withdrawal request by
additional official letter stating the amount to be withdrawn. Like any other
withdrawal procedures the representatives should bring valid and renewed
ID card.
6. Float fund size at branch level

a. All branches should keep and maintain the float fund that approved to the
branch in order to make instant payments when requested by customers.
b. But sometimes due to different reasons sufficient amount may not be
available in safe box to make payments of saving withdrawals. Thus, the
branch manager can approve to make withdrawal from cash on hand
account and replace the amount immediately at the time the remaining
cash on hand balance is deposited.
45
7. Closing Saving Accounts

The voluntary saving customers who decide to close the saving account should
return back the pass book to the branch and can withdraw the minimum
amount that to be left in the account at the time of closing the saving account
shall be Birr 20.00. The branch office shall close the account by passing
necessary journal entries as per the finance policy of the company for the
amount kept on the pass book.
8. Saving Withdrawal processes and time needed

 Output: Processing saving Withdrawal
 Time Needed: 25 minutes
 Service provider: CSO at branch office
No. Activities Time needed
1  CSO receives filled withdrawal form by a client or assist 5 min

the customer who want support in filling the formats,
The Finance officer/accountant should check:

 saving balance from saving ledger and passbook
balance (Checking should be made based on the
Reference numbers written on saving ledgers)
 Clients’ I.D.
 Signature with the specimen card
 Saving types and its contractual term if any
 Post the amount to be withdrawn on saving ledger and
clients’ pass book
 The internal auditor ( if available) verifies all savings
withdrawal documents
And finally the finance officer signs on the withdrawal form to
confirm as the necessary is checking made
2 The branch cashier will pay the amount approved to be 10min
withdrawn to the client in the following manner:
 Receives the passbook, the withdrawal voucher and
I.D. card from the CSO,
 Checks carefully the amount written in words and
figure, confirm whether the name and account
number on the voucher is identical with the
passbook and make sure that the amount is posted
46
No. Activities Time needed
on the passbook.
 Ascertains that the client who appears for
withdrawal is the right person by comparing with the
affixed photo on the I.D. card.
 Pays the specified amount on the withdrawal
voucher to the account holder by recording the
denomination on the voucher
 Puts the “Cashier’s Stamp” if any on the passbook,
make initials on it and delivers the passbook and or
I.D. card to the client.
 Put the cash paid rubber stamp if any or/and the
client signs on the face of the withdrawal voucher
and initials on it.
9. Saving Mobilization Strategies
9.1 Branch office level

The branch manager discusses with branch staffs and reach consensus on the:
 Strategies and approaches to be followed to mobilize more savings,
 Discuss on how the branch achieve annual targets savings using different
mobilization tools (handhura, sooramaa, individual, borrowers, institutional
voluntary savings, time deposit, coin box, door to door savings and etc)
 The size of the savings of each product (saving types) that to be shared to
each CSO or branch staff and
 Consequences of failure to mobilize savings as per the target set
 The branch manager regularly communicates with the stakeholders mainly

with MSE loan stakeholders in order to get support from the stake holders
that enables the branch responding to the demands of the MSE loans and
cover the fund required for financing from the savings to be mobilized in
that specific Aanaa or town.
47
 Regularly report (at least monthly) to the MSE stakeholders the

performances of savings that mobilized from the Aanaa/town that obtained
due to the support of the stakeholders and so clearly indicating the impact
of the shortage of savings on financing the MSE loans to be provided in the
Aanaa/town.
 He/she should always look for public meetings, workshops, developmental

meetings and occasions in which he/she can convey the messages about
saving.
 Personally communicate with women and youth associations, Afoshas (idir),

NGOs and other organized groups and discuss on how members or the
organizations saves in the branch in return how the members benefits from
the loan services that the branch provides
 Keeps discussion regularly with the stakeholders to get support in

mobilizing savings from whether governmental, nongovernmental or any
associations, or any social groups
 Manages and uses promotion medias like Leaflets, brochures, banners,

posters and other tools that to be prepared at head office level and ensures
whether the tools are properly utilized for same purpose.
 Assume responsibility for mobilization of handhura and Soorma savings

from the town where the branch is located through communicating
students, school teachers, school parent committee, parents of the student,
Afoshas (idirs), NGOs working with children and elders.
 Schools mini medias and sponsoring events like inter school races, parent
days, and other promotion strategies can be used in promoting Handhura
saving
 Organizes meetings with the organizations to introduce the savings products

48
 Use the opportunities to convey all financial services of OCSSCO while

delivering interviews to the local radio, newspaper, TV and other medias
 Assign fixed day/s for door to door saving mobilization and assign CSO and
branch assistant cashier to collect savings on their assigned Gandas or
areas.
 After discussing with OCCSSOs’ structures at various level(head office or

Zonal office) and obtaining support and cooperation from the stakeholders,
can introduce different promotion strategies like:
 Inaugurating saving day ceremony in the town/Aanaa
 Future Millioners entrepreneurs’ day ceremony for Handhura,

sooromaa ,entrepreneurs or MSE operators saving day
 Women saving day ceremony to encourage women participations in

saving mobilizations
 MSEs saving day ceremony for MSE operators and entrepreneurs
 Farmers saving day for both loan customers and non customers savings
 ‘Save in coin box ‘ day ceremony for petty traders, small scale traders,
shoe cleaners, taxi drivers and their assistant and etc,
 Offer incentives for opening savings accounts (i.e., small gifts such as a pen,
pocket calendar, paper clips, etc.), that to be prepared by head office
 Market day is special and easy to communicate the community at large at a

time. Use loud speakers to announce the products, Let the model depositors
speak with special dressing and appearance (like riding a horse and other
means available in the area), let women depositors take part to attract
women in the occasion and et.
 Identifies potential sources of deposit and depositors and communicates to

the stake holders (Aanaa/Woreda Administration, Municipalities, MSE
49
agencies at each level and etc) for further supports: The followings can be
among the major sources of savings:
 Government and nongovernment offices/enterprises/organizations as well

as religious institutions
 Municipalities, TVETs, health, education and other offices’ internal
revenues
 Municipalities retentions from investment land, collections for different
services to be delivered
 Funds mobilized from bazaars and public contributions for developments
of different infrastructures
 Social institutes like Afosha, formal and informal community owned
deposit mobilizing associations
 Women and youth associations, unions and cooperatives, teachers
associations and other public and professional associations
 Private investors, individuals, traders and etc
 Organized MSEs, MSEs cluster centers
 Loan clients and etc.
 Regularly (at least in a month) monitors saving performances of the branch
and evaluates staffs’ performance individually. Takes corrective actions and
measures on deviants from the plan and capitalize on good performances.
 The branch manager and the remaining branch core staff should always
ensure that the depositors feel comfort on the money they deposit, able to
withdraw easily upon request, in place transparency on all records and
balances, ensure confidentiality of the depositor’s accounts, in place strong
controls on savings and other financial transactions and etc.
Promotion by CSO
 Primarily, the CSO at branch level should be catalyst, change agent and
saving ambassador of the branch
50
 As front liner, the CSOs’ appearance, dressing, behavior, manner, respect

for others, trustworthiness, punctuality and other characters positively or
adversely affect the output of all efforts that have been made to mobilize
more savings. Thus, the CSO should always be careful in over all his/her
service deliver quality, personal manner and relationships with others.
 The CSO should always preach & communicate in all events, occasions
and meetings where deemed important about OCSSCOs’ saving products,
characters, values and attributes.
 The CSO should take activities of saving mobilization as routine activity
and important input to process and finance the loans that has been
planned in the branch
 CSO should be dedicated & responsible to sensitize and create awareness
about individual voluntary savings in the Kebele/PAs he/she is assigned
to organize loan groups
 The CSO should introduce one-on-one in person promotion tactics on
the loan customers he/she is managing
 The CSO is responsible to mobilize voluntary savings from the identified
customers according to the annual targets set for each saving product
type that agreed up on with the branch manager and other branch staffs.
 The CSO works more on the loan clients s/he is managing, fully utilizes
the sites assigned to him/her to mobilize coin box and door to door
savings
 The CSO should continuously initiate the community using public
meetings, at afosha (idir) gatherings, religious and market places
 CSO establish saving net works that is to be formed by saving and loan
customers to attract new customers. The community small group
organization like (gooxii, cell, women and youth associations and etc can
be helpful in establishing the networks)
51
 The CSO can propose to the branch manager about gifts like (company T-
Shirt, cape, pens, or company note books(agenda) that to be given to the
best performers in establishing the saving net works
9.2 Zonal Offices

Saving mobilization requires strong effort, devotion and energy in making frequent
contact of potential depositors & stakeholders, and others who are playing major
roles in mobilizing savings.
 OCSSCO core process staff at zonal level are also required to identify and
communicate potential saving sources
 Depositors value more for the safety, security of their saving deposit as
well as easy access. Zonal office should ensure whether OCSSCOs’
saving policy, financial management and internal control policies are
properly in placed and implemented so that depositors wealth is safely
kept and to be easily accessed up on demand by the depositors.
 The core staff at zonal office level should always ensure that the
depositors feel comfort on the money they deposit, able to withdraw easily
upon request, in place transparency on all records and balances, ensure
confidentiality of the depositor’s accounts, in place strong controls on
savings and other financial transactions and etc. Take corrective action
and measures on any activities or acts that compromise the quality of
savings
 With special focus to finance 50-80% of MSE loan demands from savings,
the zonal office structure is required to regularly discussing the plan and
performances of savings in the zone with MSEs major stakeholders and
set future directions to achieve the target or capitalize on best
performances.
52
Therefore, OCSSCOs’ structure at zonal level should communicate about saving

sources and supports required, about plan and performances with the following
stake holders:
 Zonal Administrations
 Aanaa/Woreda Adminstration
 Municipalities
 MSE agencies at each level etc…
 The zonal structure should assess and identify different possible sources of
savings and communicate the stakeholders for further support and as well
notify respective branches for further follow up and collections:
 Government and nongovernment offices/enterprises/organizations as well

as religious institutions
 Municipalities, TVETs, health, education and other offices’ internal revenues
 Municipalities retentions, collections for different services to be delivered
 Funds mobilized for developments of different infrastructures
 Social institutes like Afosha, formal and informal community owned deposit
mobilizing associations
 Women and youth associations, unions and cooperatives, teachers
associations and other public and professional associations
 Private investors, individuals, traders and etc
 Organized MSEs, MSEs cluster centers
 Loan clients and etc.
 The zonal office monthly evaluates and monitors saving performances of
branches under its leadership against the target set in each saving types,
take corrective actions on low performing branches and capitalize the
experiences of good performing branches to others and same branch.
53
9.3 Promotion at Head office level

 Identify idle resources, Governmental and community project funds, program
funds and local and foreign partners. Communicate with the officials at high
level and arrange transfer of the funds to OCSSCO branches or head office
account
 Report regularly to the regional level concerned officials the performances

against the plan, supports obtained from the governmental stakeholders and
discuss on the problems that hinder more mobilizations
 OCSSCO head office is required to review and revise the saving policies
based on the identified demands of the customers,
 In place strong internal control, MIS, account records and other tools to
maintain safety and security in deposits
 Studies competitive prices for savings and incentives
 Identify new saving products that fits and satisfy customers
 Issue polices of incentives to encourage best performing branches and staffs
 Identify best and persuading promotion strategies and communicate the

branches for implementation
 Prepare standardized posters, banners, leaflets, brochures, panel

discussions, TV and Radio advertisement and promotions and other tools of
promotion.
 Inaugurates regional level saving day ceremonies
 Design and approve standardized zonal branch office layout, office building,
furniture and equipments and other internal facilities
54
 Provide and facilitate continuous trainings and other capacity building

supports to zonal and branch office staffs
55
12. Saving Formats
Internal Content of Company’s Passbooks
Liqii /Loan Passbook
Liqii/Loan Dhala/Interest
Kan Kan Kan Kan Kan Hafee

Guyyaa Mallattoo
Kenname Kaffalame Bilchaate Kaffalame Madaalii
Date Disburesd Repaid Matured paid Balance Sig.
56
Qusannaa Dirqii %_______ (kan Liqiin Duraa) (Pre loan Saving -Compulsory)
Passbook
Guyyaa Qusannaa Dhala Madaalii Baasii Dhala Madaalii Mallattoo
Date Deposit Interest Balance Withdrawal Interest Balance Sig.
57
Qusannaa Dirqii Ji'a - ji'aan Qusatamu Qr._____(Mouthly Compusory Saving)

Passbook
Guyyaa Qusannaa Dhala Madaalii Baasii Dhala Madaalii Mallattoo
Date Deposit Interest Balance Withdrawal Interest Balance Sig.
Qusannaa Fedhii (Voluntary Savings) Passbook
Guyyaa Qusannaa Baasii Dhala Madaalii Mallattoo
Date Deposit Withdrawal Interest Balance Sig.
58
Guyyaa _______________
Waliigaltee Yeroo Dheeraa Qusannaa Handhuuraa
WALQO Damee_______________
Godina ____________ Aanaa (Ol-Aanaa) ______________ Magaalaa _________
Lakk.Bil. _______________ L.S.Poostaa _________
Maqaa Qusataa ______________
Teessoo:Godina ___________ Aanaa _______________ Ganda ________
Lakk.Manaa ____-_________ Lakk.Bil.___________________
Hojii Qaxaraamaa L.S.Poostaa ___________
Lakk.Waraqaa Eenyummaa _____________
Qaama Waraqaa Eenyummaa Kenne _____________
Maqaa nama herregni qusannaa banamuufii (Minor) ________________
Umrii (wagga) __________ Saala Dhira
Teessoo: Godina_________Aanaa ___________ Ganda _____________
Bulchiinsi waliigaltee yeroo dheeraa Qusannaa Handhuuraa kan armaan gadiiti

ta’a:
 Qusataan ji’atti Qr. ______ (___________________) walitti aansee waggaa

_______ (__________)f qusachuuf waliigaleera,
 WALQOn akkataa walii galteetiin maallaqa qusatame dhala isaa wajjiin
gaafa guyyaa walii galteetti ykn eega guyyaan waliigaltee dhumateen booda
59
abbaa qusateef ni kafala. Maallaqni qusatame guyyaan waliigaltee osoo hin

dhumiin dura baasii hin ta’u.Garuu qusataan maallaqa isaa gaafa guyyaa
walii galteetiin dura yoo baafate waliigalteen akka diiggametti fudhatamee
dhalli akkaatuma qusannaa fedhii idileetiin ni shallagamaaf,
 Yoo qusataan tokko qusannaa isaa waggaa tokko keessatti ji’a 3-4 addaan
kute, guyyaa qusannaan addan cite irraa kaasee dhalli qusannaa duraanii
irratti akkaataa waliigalteetiin shallagamaa ture gara dhala qusannaa
fedhiitti ni jijjiirrama,
 Kafaltiin/ Qarshii baafachuun kan danda’amu eerga guyyaan waliigaltee
dhumateen booda haadhoo fi dhala (principal and interest) isaa yeroo
tokkotti ta’a, ykn immoo akka fedhii qusataa ta’u ni danda’aa
 Gaaffii maamilicha irraa kaa’uun yeroon waliigaltee dura , ergaa dhumatee
boodaa, waligaltee haaraa kan isaa kanan duraatin wliqixaa kan ta’ee irraa
deebasani haaromsamuu ni danda’a,
1. Herregni qusannaa (Saving/Account) Handhuuraa yoo cufame
dabtarri qusannaa damee WALQO tti deebii ta’uu qaba,
2. Maamila qusannaan isaa ji’atti Qr.10-50 ta’ee waggaa 5niif walitti
aansee qusateef dhalli %6 waggaatti ni shallagamaaf,
3. Maamila qusannaan isaa ji’atti Qr. 50 ol ta’ee waggaa sadiif (three
years) walitti aansee qusateef dhalli %6 waggaatti ni shallagamaaf,
4. Maamila qusannaan isaa ji’atti Qr. 50 ol ta’ee waggaa 5niif walitti
5. Qusataan qajeelfama kanaan buluuf itti waliigaleera. WALQOn
qajeelffama kana fuulduratti (in the future) jijjiiruu fi fooyyeessuu kan
danda’u yoo ta’u, qusataanis qajeelfama kana fudhatee kan ittiin bulu
ta’a.
60
Qusataa Bakka Bu’a WALQO
Maqaa______________________ Maqaa _________________
Mallattoo____________________ Mallattoo ______________
Guyyaa ___________________ Guyyaa _____________
Chaapaa WALQO
61
Guyyaa_______________
Waliigaltee Yeroo Dheeraa - Qusannaa Sooramaa
Maqaa (Qusataa) __________________________________________
Teessoo: Godinaa __________________Aanaa (Ol-aanaa) __________________ Ganda

________________ Magaalaa________________
Lakk.manaa __________________ Lakk.Bil ______________
Hojii ___________________ L.S.Poostaa _______________
Lakk.waraqaa eenyummaa _________________________
Qaama waraqaa eenyummaa kenne ____________________________________
Waliigalteen yeroo dheeraa qusannaa Sooramaa haala armaan gaditti lafa kaa’ame
kanaan bula:
 Qusataan ji’atti Qr. ________ (_____________________) walitti aansee waggaa

_____f qusachuuf waliigaleera,
 WALQOn akkaataa waliigalteetiin gaafa dhuma guyyaa waliigalteetii ykn
sana boodaa kaasee qusatadhaaf Soorama (pension) haalaa qusaatan
fedheetti kanfalauudhaaf waligaleeraa. Osoo guyyaan waliigaltee hin
geenye kafaltiin hin eegalamu. Yoo maamilli (Qusataan) guyyaan waliigaltee
osoo hin genye maallaqa baafachuu barbaade waliigalteen akka cabetti
ilaallamee dhalli kafalamu akkaataa qusannaa fedhii idileetiin ta’a,ykn
shallagamaaf.
 Yoo maamilli qusannaa isaa waggaa tokko keessatti ji’a 3-4 addaan kute,
dhalli duraan shallagamaa ture gaafa kafaltiin addaan cite irraa kaasee
gara shallaggii qusannaa fedhii idileetti ni deebi’a,
62
 Gaaffii maamilicha irraa kaa’uun yeroon waliigaltee dura , ergaa

dhumatee boodaa, waligaltee haaraa kan isaa kanan duraatin wliqixaa kan
ta’ee irraa deebasani haaromsamuu ni danda’a,
 Herregni qusannaa (Saving/Account) Sooramaa yoo cufame dabtarri
qusannaa damee WALQO tti deebii ta’uu qaba,
 Maamila qusannaan isaa ji’atti Qr.10-50 ta’ee waggaa 5niif walitti
 Maamila qusannaan isaa ji’atti Qr. 50 ol ta’ee waggaa sadiif (three
years) walitti aansee qusateef dhalli %6 waggaatti ni shallagamaaf,
 Maamila qusannaan isaa ji’atti Qr. 50 ol ta’ee waggaa 5niif walitti
 Yoo qusataan waggaattii ji’a 3-4 kafaltii addaan kute dhalli qusannaa
duraanii irratti shallagamu ji’a 4ffaa irraa kaasee gara shalaggii dhala
qusannaa fedhii idileetti deebi’a,
 Qusataan qajeelfama kanaan buluuf itti waliigaleera. WALQOn
qajeelfama kana fuulduratti (in the future) jijjiiruu fi fooyyeessuu kan
danda’u yoo ta’u, qusataanis qajeelfama kana fudhatee kan ittiin
bulu ta’a.
 Waliigalteen kun gaafa guyyaa maamilli hanga maallaqaa waliigalame
qusachuu jalqabe irraa kaasee hojiirra ni oola.
Qusataa Bakka Bu’a WALQO
Maqaa_______________________ Maqaa_______________________
Mallattoo ____________________ Mallattoo ______________________
Guyyaa _____________________ Guyyaa _________________________
Chaapaa WALQO
63
Guyyaa ______________
Iyyaannoo Herrega Qusannaa Handhuuraa Yeroo Dheeraa Banachuuf

Dhiyaatu
WALQO Damee _____________________tiif
___________________________________
Maqaa Daa’immaa (minor)__________________________Umrii _____ Saala _____
Teessoo: Aanaa _____________ Ganda __________ Lakk.Manaa __________
Maqaa Qusataa guutuu (principal) _____________________________________ Teessoo:

Aanaa ________________ Ganda ___________Lakk. Manaa ___________ Lakk.Bil
_______________________ Hojii ________________ L.S.Poostaa __________
Lakk.waraqaa eenyummaa _______________________________________ Qaama
waraqaa eenyummaa kenne ________________________________
Ani maqaan fi teessoon kiyya kan armaan olitti tuqame daa’ima maqaan fi
teessoon isa/ishe armaan olitti tuqamef (nama of-hindandeenye) Qr. _________
waggaa________________tiif haaluma sanada waliigaltee keessatti tuqameetiin
qusachuuf iyyadheera.
Maqaa ________________________
Mallattoo ______________________
Guyyaa _______________________
64
Guyyaa __________
Iyyaannoo Herrega Qusannaa Sooramaa Yeroo Dheeraa Banachuuf Dhiyaatu
WALQO Damee__________________tiif
______________
Maqaa (Qusataa) ___________________
Teessoo: Aanaa ______________________ Ganda ____________ Lakk.Manaa________
Lakk.Bil ____________________ Hojii _____________L.S.Poostaa ________
Lakk. waraaa eenyummaa _____________________
Qaama waraqaa eenyummaa kenne ___________________________________
Ani maqaa fi teessoon kiyya kan asii olitti tuqame haaluma sanada waliigaltee
keessatti
tuqameen Qr. _______ waggaa _____f qusachuufin iyyadha.
Maqaa _______________________
Mallattoo ____________________
Guyyaa ______________________
65
Waldaa Aksiyoona Liqii fi Qusannaa Oromiyaa
Oromia Credit and Saving Share Company
Collection Sheet
Branch name_______________ Group No _____ Schedule of Collection__________ Collection

cycle_____________
Group Saving Voluntary Remark

Loan 5% of
Collection saving collection
S/n Name Amount loan A/No Amount Penalty A/No Amount
OCSSCO’s Saving Mobilization and Management Manual 66

Group Saving Voluntary Remark

Loan 5% of
Collection saving collection
S/n Name Amount loan A/No Amount Penalty A/No Amount
Total
Collector Branch Accountant Branch

Manager
Name_________________ Name_________________ Name________________
Signature_______________ Signature______________ Signature _____________
Date _________________ Date_________________ Date _________________

Saving Account Opening Register book
I D Card Telephone Date of Account

S/N Name Passbook No Signature
No No Opening No

Photo/s
-- (For Individual, Organization, dual or triple)
Specimen signature Card
Full Name………………………………………
Maqaa Gutuu
Accout No …………………………………..
Lakk. herreegaa
Date opened……………………………………
Guyyaa banaame
Initial Deposite …………………………………
Kusa Jalqabaa
Address: W……………….K…………….H. No……………P. O. Box………… Tele:

Direct line………….
Teessoo Aanaa Ganda L. Mana. L. S. Posta

Bilibila: Sarara
Mobile…………………
Mobaayila
Will be opened
by………………………………………………………………………………………………….
Nama ittiin Banu
Specimen signature ……………………. …………………… ………………….
Mallattoo Fakkii …………………… …………………… ………………….
…………………… ……………………
………………….
Accountant Signature …………………….. Branch Manager Signature

……………………
69
S/A
(Reverse/ back)
I/We authorize the company to accept both/either/all/anyone of the signature

appearing on the face of this card as a valid discharge for all transaction of
thee saving deposit S/A opened in my our mane(s) today.
Guyyaa har’aa maqaa kootiin /kenyaan herreega qusannaa baname

sochoosuuf fula kardii kana isa jelqaba irratti kan argamu mollattoon tokko
kenyaa /lamaan kenyaa/ eenyuma kenyaa kubaniyaan kun kan gatii qabu
godhee akka naaf /nuuf fudhatu angoo kenneera
/kenninera.
…………………….
Signature of customer
Mallattoo mammillaa
Nationality………………………………………………I.D.Card…………………………
Waraqaa Enyummaa
Issued on ……………………………… Occupation

…………………………………………
Guyyaa bahe Hojii
Employer…………………………… Remark………………………………………………...
Qacara Yaada
S/A
70
Coin box Agreement Format
Teessoo:
Godina/Magaalaa...…………………kutaaMaagaala……………Aanaa/ganda………
………lakk. waraqaa enyummaa gandaa……………lakk.mana………lakk.
Bil.moob.......................
Bil. mana……………………
Ani Maqaan koo asiin olitti kan ibsamee waldaa liqii fi qusanna oromiyaa
dame …………. irraa sanduqaa ………..×……….sm kata;ee
guyyaa………………..yoon fudhadhuu fayyaa ta’u ilaalee itti fayyadamuuf:
a. Osoo hin cabsiin, osoo hin jijjirin, nama biraaf

dabarssee osoo hin keeniin seeraan eegee itti
fadamuuf.
b. Qammii naaf kenne kun sa’atii fi guyyaa inni
nagafaateettii debisee kennuuf.
c. Seera lakk. 1 fi 2 (tokko fi lama) irratti caqafame
asiin olii yoon darbee argamee mormmii tokko malee
waan Aksiiyoonichi shallagee na gafaatu kafaluuf
waligalera.
Sanduqa kana fudhachu kootiif akkasummas seera fi seera lakk.
tokkoo hangaa sadiitti asiin olitti barreeefame kana itti amanee
kan waligalee ta’u koo mallattoo koon ni mirkaneessa.
Maqaa……………………………
Mallattoo………………………….
Guyyaa…………………………..
71
Date _______________
Waldaa Aksiiyoona Liqii fi Qusannaa Oromiyaa
Application Form for Fixed Time Deposit
To: Oromia Credit and Saving Share Company _________________HQ/branch
Name_____________________________________________________
Address: - Zone /Town ______________________ District/

___________________
Kebele _______________ House No. ___________________
Tel. No. _____________________ Organization ___________________
P.O.Box No. __________________ Tel. No. _____________________
I.D Card No. ____________ Issued by __________________________
Employer _________________________________________________
Kebele ___________________________________________________
Amount to be deposited birr___________

(________________________________)
1. Whose name and address is stated above hereby apply to deposit birr
_________________ (_____________________________________________________
__________________) for __________ months/years under the terms and
72
conditions stipulated on the deposit certificate and those that the OCSSCO
may issue in future.
2. Further agree and instruct OCSSCO to pay me interest on the deposited

amount in the following manner. (Indicate your choice by using the marl)
 Deposit in interest bearing account to be paid to me in cash upon my

request when the term is matured.
 Deposit in non-interest bearing account to be paid to me in cash upon my
request when the term is matured.
Applicant’s signature _________________________________
For office use only
Processed by (Full name, Signature)

__________________________________________
Certificate No. ________________________
Remarks ____________________________________________________________
________________________________________________________
73
Date _________
Waldaa Aksiiyoona Liqii fi Qusannaa Oromiyaa
Certificate of Fixed Time Deposit
On ______________ the Oromia Credit and Saving Share Company will

pay to the order of _____________________________________ the sum of
_________________.
(_____________________________________________________________________________
____)
This deposit is accepted subject to the conditions printed overleaf and

agreed to by the Depositor(s) and will bear interest at_____ %
(__________________) per annum, payable on or after the due date of this
deposit and as provided for in the conditions governing this deposit.
For and On behalf of Depositor For and On behalf of
Oromia Credit and Saving S.C
______________________________ _____________________________
Date_________________________ Date ___________________
74
This Certificate of deposit is to be governed by the following

conditions:-
1. Oromia Credit and Saving Share Company (OCSSCO) undertakes to repay to

the depositor(s) the amount of the deposit together with interest on or after the
maturity date but not before, the due date of the deposit and OCSSCO will be
held free to refuse payment of the deposit or any part there of prior to the
due date of the deposit. The due date of each separate deposit as well as the
amount of the annual interest allowed there on is to be agreed upon at the
time the deposit is accepted by OCSSCO and is to be clearly stated on the
receipt (Certificate of deposit) Issued by OCSSCO to the depositor(s) In the
event that OCSSCO at the request of the depositor(s), but strictly and entirely
at OCSSCO’s discretion, agrees to repay to the depositor(s) the amount of the
deposit prior to the due date of the deposit, it is understood and agreed that
the amount of interest accrued will be forfeited by the depositor(s) and no
claim therefore will attach at any time to OCSSCO or its agents.
2. In accordance with customer’s instruction in the opening application, interest
will either be paid or capitalized on maturity and the deposit will be renewed
for a further term equal to the previous one.
3. OCSSCO reserves the right to change the above conditions from time to time
and notify the depositor by affixing a notice on OCSSCO’s Notice Board.
75
13. Third party/partners fund management

OCSSCO and several partners’ with common objectives have been collaborating
in the provision of micro credit primarily through being governed by OCSSCOs’
loan provision policies and procedures and in the other wing aiming at
partners’ primary choice of targets, programs and intervention areas.
The collaboration will continue in a more organized approach and process that
includes the following steps:
a. All external relationships and agreements shall be made and signed only at
head office but the Zonal or branch office can facilitate the communication
and play the liaison ship role between the company and the partners.
b. External and partner’s relations, searching for program funds and partners’
collaborations will be conducted by OCSSCOs’ Research Business
Development and Communication support process.
c. The support process makes agreement on service types, intervention sites
and provision modalities without compromising OCSSCOs’ existing services
provision policies and procedures
d. The credit supply and delivery core process reviews the proposals before the
final agreement is signed.
e. The credit supply and delivery core process implements the programs
according to the agreement made between OCSSCO and the partners
f. The credit supply and delivery core process assigns programs’ focal and
responsible person from the core process team
g. The operational records and performances of all programs are kept
separately in the core process
h. The focal person will be responsible to ensure and follow whether the
programs are implemented according to the agreement made and prepares
report to the respective District Director timely
76
i. All the programs’ documents are filed and kept properly in the core process
for further references, regulatory enquiries and legal purposes if any.
J The core process produces performance reports of the programs and timely
notifies all concerned parties as per the agreed schedule.
77

Saving &amp; Third Party Fund Management Manual Final

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Saving &amp; Third Party Fund Management Manual Final

Uploaded by

Copyright:

Available Formats

Oromia Credit & Saving Share Company

Oromia Credit & Saving Share

Saving & Third Parties’ Fund

I. Vision of Credit Supply and Delivery Core Process ........................................................ 4

II. Mission of Credit supply and delivery core process ................................................... 4

General Values ................................................................................................................................... 6

Individual Values ............................................................................................................................... 6

Strategic Values ................................................................................................................................. 6

Operational Values ............................................................................................................................ 7

I. Importance of Credit Supply and Delivery Core Process Manual ............................... 7

II. Binding rules, regulations, policies and directives ..................................................... 7

1. Compulsory savings ................................................................................................................ 11

3. Voluntary Saving Principles .................................................................................................. 13

4. Voluntary Saving Types ....................................................................................................... 14

4.1. Loan Customers Voluntary Saving................................................................................... 14

4.2 Non loan Customers Savings.............................................................................................. 17

4.2.1 Handhura Saving (Minors Saving) .................................................................................... 17

4.2.1.1 Major Handhura Saving Policies............................................................................... 17

4.2.2 Soorama saving ..................................................................................................................... 19

4.2.3 Fixed Time deposit................................................................................................................ 20

4.2.4 Coin Box Savings .................................................................................................................. 22

4.2.4.1 Coin box management and collection procedures .................................................... 22

4.2.5 Door to door saving .............................................................................................................. 25

4.2.5.2 Verification of Savings that are collected at sites ................................................. 27

4.2.6 Current/Checking Account ........................................................................................ 27

4.2.7 Non-interest Bearing Saving Account ...................................................................... 31

4.3 Capitalization and change of interest rate on savings ................................................ 31

4.4 Interest incentive for loan customer depositors ........................................................ 31

5 Summary of saving types and their features ................................................................. 33

6 Saving account Opening Process Map ............................................................................. 40

7. Procedure and time needed for Saving Account Opening ........................................... 41

8. Saving Withdrawal ................................................................................................................ 43

8.1 Borrowers’ Saving Withdrawal ....................................................................................... 43

8.2 Non-borrowers’ saving withdrawal ....................................................................................... 44

8.3 Major requirements to be fulfilled for voluntary saving withdrawal ............................ 44

9. Float fund size at branch level........................................................................................... 45

10. Closing Saving Accounts ................................................................................................. 46

11. Saving Withdrawal processes and time needed ............................................................. 46

12. Third party/partners fund management..................................................................... 47

13. Saving Mobilization Strategies ....................................................................................... 47

13.1 Branch office level................................................................................................................. 47

13.2 Zonal Offices .......................................................................................................................... 52

13.3 Promotion at Head office level ........................................................................................... 54

Business Process Reengineering (BPR) is defined as elemental rethinking and

II. Vision of Credit Supply and Delivery Core Process

III. Mission of Credit Supply and Delivery Core Process

IV. Major objectives of Credit Supply and Delivery Core Process

 Empowering women in the region economically through provision of micro

 Contributing to the struggle against poverty and unemployment in the region

 Encouraging women and youths to participate in creating household level

 Professionally manages partners and third party funds and contribute in

V. Values and Principles of Credit Supply and Delivery Core

 Zero tolerance to irregularities, delinquencies and embezzlement.

 Commitment to serve and satisfy the client.

 Commitment to work in line with working manual

 Enhancing women participation

 Team work/ spirit,

 Commitment to excellence and

 Commitment to quality and professional competence

 Enhancing women participation and empowerment

 Regular and intensive monitoring and follow up,

 Effective and efficient management,

 Binding to rules and regulations,

Saving & Third Party Fund Management Manual Final

Saving & Third Party Fund Management Manual Final