Retail Banking Training Material

[Type text] Page 1
“Change is the low of life; and those only who look the past or the present can
certain to miss the future”
J.F.KENEDY
TABLE OF CONTENT
1. Introduction
1.1 Over all set up of Customer Account and Transaction process
1.2 Work flow organization
1.2.1 Product and Service under CATS
1.2.2 Back office
2. Type of product and Services
2.1 What is Demand Deposit(Current Account?)
2.2. What is Fixed Time Deposit Account?
2.2.1 ISSUANCE OF FIXED TIME DEPOSIT CERTIFICATES

2.2.2 IINTEREST COMPUTATION ON THE FIXED DEPOSIT
2.2.3 RENEWAL OF FIXED TIME DEPOSIT
Customer Account and Transaction Service (Domestic Banking Service Training manual. By
Demessew Kassa
2.3 What is Overdraft Account?
2.4 What is foreign currency account?
2.4.1 Type of foreign currency account
2.5 What is Joint accounts (AND or AND/OR)? Its operation.

2.6 Special Demand Deposit Account (SDDA)
3. Document Requirement to open account

General:
3.1 Documents required opening a local currency accounts (Savings and Demand Deposit
Accounts)
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3.1.1 Individual (s)
3.1.2 Private Limited Company
3.1.3 Organizations legally incorporated in the form Of Partnership
3.1.4 Share Company
3.1.5 Cooperative Societies
3.1.6 Associations and club
3.1.7 Non-resident companies
3.1.8 Non Resident Ethiopian and Foreign Nationals of Ethiopian origin
3.1.9 Exporters
3.1.10 Recipients of inward remittances
4. Account Closing
4.1 The precaution in account closing by customer
5. Cash Collection for deposit at branch
6. Collection of Negotiable Instruments for Deposit
6.1 Check clearance
6.1.1 On bank check clearance - Cheque drawn on other city branches
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6.1.2 Other bank check clearance
6.2 Normal check clearance
6.3 Special check clearance
6.4 Foreign Cheques
6.4.1 Outward Bills Purchased (OBP)
6.4.2 Outward Bills for Collection (OBC)
6.4.3 Accepting claim of negotiable instruments
7. Payment
7.1 Payment from Current Account
7.2 FCY Cheque (NRT, NRNT)
8. Other Issues in Opening, Collection and Payment
8.1 Inactive Account
8.2 Handling and issuance of cheque books
8.3 Preparation of Current Account bank statement at the end of each month
9. Negotiability and Endorsement of Cheque
9.1 Endorsement of Cheque
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9.1.1 The Use and Transferability (“Negotiability) of Cheques
9.1.1.1Cheques generally crossed
9.1.1.2Restricted negotiability of cheques
9.1.2 Cheques issued in the name of organizations or legal bodies
9.1.3 Stop Payment Order
9.1.3.1 Request for Stop Payment Order
10. Customers’ Standing Instruction
II. Saving Account

1.1 GENERAL POINTS- What is Saving Account?
1.2 Requirements to open SA
1.3 Type of S/A

1.3.1 OPENING OF ACCOUNT BY LITERATES
1.3.2 OPENING OF ACCOUNT BY ILLITERATE
1.3.3 BLIND CUSTOMERS
1.3.4 JOINT SAVINGS ACCOUNT (AND or AND/OR)
1.3.5 ACCOUNT FOR MINORS
1.4 THE PROCESS OFCASH DEPOSIT TO SAVINGS ACCOUNT
1.5 PAYMENT INSTRUMENTS DEPOSIT TO SAVINGS ACCOUNT
1.6 WITHDRAWAL BY LITERATE CUSTOMERS
1.7 WITHDRAWAL BY ILLITERATE DEPOSITORS
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1.8 WITHDRAWAL AT OTHER BRANCHES
1.9 BLOCKING INWARD
1.10 WITHDRAWAL BY THIRD PARTY
1.11 INACTIVE SAVINGS ACCOUNT
1.12 INTEREST PAYMENT ON SAVINGS ACCOUNT
1.13 LOSS OF PASSBOOK
1.14 CLOSING OF SAVINGS ACCOUNT
2. OTHERS
2.1 STANDING PAYMENT ORDERS
2.2 CLOSURE AND TRANSFER OF A SAVING ACCOUNT BALANCE FROM BRANCH
2.3 BLOCKED SAVINGS ACCOUNT
2.4. UNISSUED PASSBOOK STOCK ON HAND
2.5 REQUESTS FOR A CHANGE OF SIGNATURE
III. Money Transfer (L/T, F/T)

1.1 What is Money Transfer?
1.1.1 Means of Money Transfer
1.1.2 Type of Money Transfer
1.2 Demand Draft (DD) and Certified Payment Order (CPO)
1.3 Foreign Money Transfer

1.3.1 Means of Foreign Money Transfer
1.3.2 Purchase of foreign currency cash notes
1.3.3 Issuance of Travelers Checks, Cash Notes,
1.4 Money Transfer Payment in Cash and crediting to customer account
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1.5 When CPO is presented for cash payment or requested for refund by the purchaser at
Issuing branch, the following procedures shall be followed
1.6 When CPO is presented for cash payment other than the issue branch, the following
procedures shall be followed
1.7 Payment of lost certified payment order
1.8 Amendment
IV. Cash Management

Genera
1. Cash Operation
1.1 Opening Procedure and Start of Day Operation
1.2 Receiving cash Deposit at the table
1.3 Day End Closing
1.4 Cash Box and Brand etc.
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2.1.4 Fixed Time Deposit Account.....................10
2.1.5 Special Demand Deposit Account (SDDA)..11
2.1.6 Certified Payment Order (CPO).................11
2.1.7 Earmarked Account..................................11
2.1.8 Account for Minors...................................11
2.1.9 Accounts for an Interdicted Person..........11
2.1.10 Staff Account...........................................12
2.1.11 Overdraft Account....................................12
2.1.12 Irregularly overdrawn overdraft and current
accounts..............................................................12
2.1.13 Foreign currency account.........................13
2.1.14 Account Closing.......................................14
2.2 Eligibility.................................................15
2.2.1. Eligible entities to open savings and/or demand
deposit.......................................................................account(s)15
2.2.2 Eligible Entities to Open a Foreign Currency
Account(s)...........................................................15
2.3 Document Requirements..........................16
2.3.1 Identification Cards (IDs) acceptable to open an
account...............................................................16
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2.3.2 Documents required to open a local currency
accounts (Savings and Demand Deposit Accounts)16
i. Individual (s)............................................16
ii. Individual trader (sole proprietorship)......17
iii. Private Limited Company.........................17
iv. Partnership and Share Company:.............17
v. Public Schools (In case of Addis Ababa City)18
vi. Institution for Higher Education (Government
owned) 18
vii. Public Enterprise......................................19
viii. Cooperative Societies...............................19
ix. Trade union..............................................20
x. Associations and club...............................21
xi. Religious Organizations and Others..........21
xii. Minors, interdicted persons, bankrupt & firms in
liquidation...........................................................22
xiii. Account for firm under liquidation...........23
2.3.3 Documents Required to Open a Foreign
Currency Account................................................24
i. Embassies................................................24
ii. Diplomats.................................................25
iii. International organizations......................25
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iv. Foreign investors.....................................25
v. Non Governmental Organizations (NGOs)..25
vi. Expatriate employees of international
organizations.......................................................26
vii. Non-resident companies...........................26
viii. Non Resident Ethiopian and Foreign Nationals
of Ethiopian origin..............................................26
ix. Exporters.................................................27
x. Recipients of inward remittances.............27
3. Account opening and Closing Procedures. 28
3.1 Account Opening Procedures....................28
3.1.1 Account Opening (Local currency and foreign
currency accounts)..............................................28
3.1.2 Joint accounts (and or and/or).................31
3.1.3 Opening of an Earmarked account............31
3.1.4 Accounts for minor...................................32
3.1.5 Opening Of Fixed Time Deposit Account. .32
3.1.6 Opening of an Overdraft Account.............34
3.2 Account Closing Procedure.......................35
3.2.1. Closure of Account Maintained Within the
Branch35
3.2.2 Closure and Transfer of a Saving Account36
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4. Collection.................................................38
4.1 Collection of Cash for Deposit..................38
4.2 Collection of cash for Money Transfer......39
4.2.1 Telephonic Local Money Transfer.............39
4.2.3 Foreign Money Transfer............................41
4.2.3.1Demand Draft and General Transfers........41
4.3 Purchase of foreign currency cash notes. .42
4.4 Issuance of Travelers Checks, Cash Notes,43
4.5 Collection of Negotiable Instruments for Deposit
45
4.5.1 Local Cheques..........................................45
4.5.1.1Cheque drawn on the same branch...........45
4.5.1.2Cheque drawn on other city branches.......46
4.5.1.2.1....................................Normal cheque clearance46
4.5.1.2.2...................................Special Cheque Clearance47
4.5.1.3CPO (Issued by DBE branches) accepted for
deposit................................................................48
4.5.1.4Clearance of other banks Cheques, CPO’S and
Drafts 50
4.5.1.4.1 Normal Cheque Clearance.....................................................................51
4.5.1.4.2 Special Cheque Clearance.....................................................................52
4.5.2 Foreign Cheques.......................................53
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4.5.2.1Outward Bills Purchased (OBP).................53
4.5.2.2Outward Bills for Collection (OBC)............55
4.6 Hanpayment authorization limiting of
responded claim of negotiable instruments.........56
4.7 Accepting claim of negotiable instruments58
5 Payment...................................................60
5.1 Payment from Current Account................60
5.1.1 Local Cheques..........................................60
5.1.2 FCY Cheque (NRT, NRNT).........................61
5.2 Withdrawal from Savings Account............63
5.3 Withdrawal from the Retention account...65
5.4 Payment from Special Coffee Auction Account
66
5.5 Payment through account blocking..........67
5.5.1 Outward Blocking.....................................67
5.5.2 Inward Blocking.......................................71
5.6 Payment against incoming money transfer72
5.6.1 Telephonic Money Transfer......................72
5.6.3 Payment of lost and/or certified payment order
76
5.7 Transaction Authorization limit...............79
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5.8 Approval and Coding limit for blocking of an
account...............................................................80
6. Other Issues in Opening, Collection and
Payment..............................................................81
6.1. Inactive Account................................81
6.2 Hanpayment authorization limiting and
issuance of cheque books....................................81
6.3 Preparation of Current Account bank statemen
82
6.4 Features of a Cheque................................82
6.5 Negotiability and Endorsement of Cheque 83
6.5.1 Endorsement of Cheque..........................................................................................................83
6.5.2. The use and Transferability (“Negotiability) of Cheques..............................................84
6.6 Stop Payment Order.................................85

6.6.1 Request for Stop Payment Order..................................................................................85
6.6.2 Cancellation of Stop Payment Order...........................................................................86
6.7 Insufficient Fund Cheques........................87

6.8 Rubber Stamps.........................................90
6.9 Customers’ Standing Instruction..............92
6.10 Blocked Savings Account..........................93
6.11 Un-issued Passbook Stock on Hand..........94
6.12 Requests for a Change of Signature..........94
6.13 Amendment..............................................96
6.14 Retransfer................................................97
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7. Cash Operation.......................................101
7.1 Cash Responsibilities.............................101
7.2 Concentration and Security....................102
7.3 Common Errors......................................103
7.4 Cash Box and Brand...............................104
7.5 Opening Procedure and Start of Day Operation
106
7.6 During the Day’s Operation....................108
7.6.1 Request of additional cash.....................108
7.6.2 Transfer of excess cash in the midpayment
authorization limite of operation:.....................109
7.6.3 Receiving cash Deposit at the table........109
7.6.4 Closing activities....................................110
7.6.4.1Half Day Closing.....................................110
7.6.4.2Day End Closing.....................................111
7.6.5 Cash Difference......................................113
7.6.6 Refund of excess cash............................114
7.6.7 Forged Notes..........................................116
7.7 Cash Custody.........................................117
7.7.1 Coins Good for Issue...............................117
7.7.2 Notes Good for Issue...............................118
7.7.3 Deteriorated Notes.................................119
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7.8 Exchange of notes..................................120
7.9 Exchange of coins..................................121
7.10 Sorting Table..........................................121
7.11 Cash Consolidation.................................122
7.12 Cash Lodgment to Vault.........................122
7.13 Security precautions..............................123
7.14 Attendance and Conduct........................123
8. Central Processing Center (CPC (FINANCE &
ACCOUNTING)) Operation..................................126
8.1 Foreign OBP and OBC Cheque Clearance 126
8.2 Inter Branch transactions (tracers /cover / and
credit tickets)....................................................127
8.3 DBE cheque clearance (issued and deposited in
DBE) 128
8.4 Other bank cheque clearance.................129
8.4.1 Outgoing cheque clearance.....................129
8.4.2 Incoming other bank cheque clearance. .130
8.5 Foreign incoming transfer......................131
8.6 Outgoing Money Transfer through SWIFT133
8.7 ATM Card Preparation at CPC (FINANCE &
ACCOUNTING)....................................................133
8.8 Procedures for Hanpayment authorization
limiting Stolen /Lost Card.................................135
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8.9 Faulty /Damaged ATM card....................135
8.10 Cheque Personalization’s........................135
8.11 Cash Distribution...................................136
8.11.1 City Branches.........................................136
8.11.2 Outlying Branches..................................137
8.12 Cash Collection......................................138
8.13 Security Precaution................................141
8.14 Hanpayment authorization limiting Cash for
NBE 142
8.14.1 Cash Withdrawals...................................143
8.14.2 Cash Lodgings........................................144
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Overall setup of CATS Process
Products and services under the redesigned CATS process:
Account Opening (LCY and FCY)
Deposit (cash/Negotiable instruments)
Payment
Cheque clearance
Money transfer (FCY/LCY)
Workflow Organization
The maker at the counter accepts any customer quires

Account opening
Cash/negotiable instrument deposit
Payments
Money transfer and other request.
He/she processes from end to end within his/her discretionary limit and with
checker above his/her discretionary limit.
Most of the CATS processes are proposed to be undertaken at branch level.
The CPC is responsible for
Cheque personalization
Clearances
Card embossing
Report generation
Settlement
Foreign currency account opening
Cash custody and distribution
Maker and checker, at branch and CPC, are empowered to decide while
performing the work from end to end without the involvement of supervisor
or manager within their discretionary limit .
That is, performers are empowered to accomplish their duties by themselves.
The Payment System (Withdrawal, cheque clearance and transfers)
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Payments such as cash withdrawal, cheque payment as well as remittances
can be performed by a generalist staff (maker-checker) at a single point of
contact.
The inter branch transaction will totally avoids the existing inter-branch
clearances since cheques presented by the customers can be instantly paid in
all branches.
Account will be opened at branch level. One maker can handle the opening
end to end. But for the purpose of strengthening internal control, a checker
will cosign while opening accounts.
Other bank cheques are cleared by special or normal clearance based on the
request of the customer.
The process involves maker and checker only (to institute four eyes
principle).
Both incoming and outgoing messages will be transferred by SWIFT (portal),
e-mail, telephone or directly by customer such as CPO, Draft, and Own
Transfer Code (MTCN).
Back office
Includes the duties of branch controller and the maker/checker at the back
office including daily cash balancing and vault cash management
Non cash tickets are prepared, run-ups are taken, daily transactions are
balanced (both cash and non cash) receiving messages, OBC, OBP, claim and
settlement tickets to/from CPC would be performed at the back office.
Cash consignment
Refers to the relationship between branches and issue accounts located at
certain centers (CPC and area offices) regarding management of cash holding
limits (both FCY and LCY).
Replenishment of cash demands of branches when the need arises.
Issue accounts will monitor cash position of branches remotely through on-
line system
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I. Introduction
In view of the Business Process Reengineering principles and concepts, the existing ASIS
functional process of other banks especially private banks in relation of Domestic banking and
Foreign Money Transfer service they are not providing customer centered service to their stack
holders. The world has changed dramatically in providing this service. Comparing the old
process the new approach is promoting radical change in terms of Time, Cost and Quality
(Costumer satisfaction). In due course, the following points have been considered in the new
redesign jobs in CATS process.
Creating single contact points to give prompt customer service delivery
While redesigning Customer Account and Transaction Service process, it tries to fulfill
customers’ need and expectation. Nowadays customers require for obtaining the service from a
single contact point. Therefore, the new process is designed to solve the problem of existing
working system that has been practiced for a long period. Hence, every customer can open an
account, receive or pay cash or negotiable instrument with one place and s/he doesn’t
require multiple contact point. This will make the bank service delivery efficient and enhance
customers’ satisfaction.
Combining several and/or related jobs into one focusing on value adding activities
This is one of the basic features of a redesigned process that we apply in the new CATS
process. While doing this primarily we try to identify every task that has been undertaken to
perform any request from the customer. Secondly, we categorize and summarize customer
requests according to their workflow, nature, types and characteristics of customers’ request.
Subsequently, we have identified where and when the work is done and by what standard the
work to be accomplished. Finally, these different jobs are combined and recombine to create a
big job by focusing only on value adding activities and by whom it should be performed.
Establish inbuilt control and reduce non-value adding check and control to process a
single transaction
To facilitate the smooth operation of CATS process, the team instituted four eyes principle *,
instead of the current multiple checking by recognizing the unnecessary cost associated with it.
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The existing practice exhibited that the task of checking that took more time and effort than to
do the actual work. Furthermore, the cost of checking may even exceed the actual cost incurred
to give the service. Therefore, the team establishes checking points to the extent that they
make economic sense by reducing non-value adding check and controls to process a single
transaction. Besides, the redesigned process institute in-built control in the process by critically
considering any possible operational risks with out compromising check and control to Customer
Account and Transaction Service.
Enabling operators to make decisions on operational matter
Every transaction doesn’t require the involvement of different persons. Either by empowering
the Maker or making collectively responsible and accountable with the checker to the specific
transaction, the team strongly believed that it would enhance the operational service delivery
and also maximize customers’ satisfaction. In other words, this is to mean maker and checker
either individually or collectively make decision by themselves, in fact within their discretionary
limit. Therefore, the process design enabled performers to make decision instead of waiting
someone to do this job.
Performing work where it makes sense to minimize service delivery time and to use
resources optimally
To improve overall process performances, the team relocate work where it makes the most
sense. This will minimize overhead cost that is associated to the process, which actually is
another major source of delay. Moreover, it eliminates hands-off, speed up operation service
delivery and many jobs get done simultaneously that reduce rework.
___________________________________
 Benchmarking input, maker-checker /four-eyes/ principle have been considered to redesign

the jobs.
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In the new approach all activities or tasks that was organized functional here and
there is designed in one process
The work flow that organized in the new process are:
 Account opening (Foreign and Local)

 Money Transfer (Foreign and Local)
 Payment - all payment
 Check clearance (Own and Other Bank)
 Cash management at branch and Issue account etc. are included in this process.
Due to this it is organized under one package to provide the service from end to end
and enable the performer to have all round retail banking knowledge.
Note: Opening of Foreign account (for international organization NGO’s and

investors) and foreign money transfer previously organized in International banking
department. Now all are organized in this process to provide end to end (from
customer request to customer satisfaction) service.
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Major training point
Demand Deposit Account

 Demand Deposit Account (current or checking account) is a non-interest bearing
account and is opened or operated by literate customers only.
 Demand deposit account can be opened and/or operated by a legal agent in the
name of principal, against producing a power of attorney, which shall be attested by
the bank’s legal service department or area offices or branch managers, as the case
may be.
 The minimum amount required by the bank to open a current account for
individuals or individual trader is birr 500 and for others birr 1000.
 Newly opened accounts should be separately kept for three months under the
account status assigned for. However, the Customer Service Manager can change
the status before the stated period if he/she believes that the customer is properly
identified
Fixed Time Deposit Account

 Fixed time deposit is a type of deposit which is received for a certain period of time
without movement and attracts higher interest rate than the prevailing saving interest
rate.
 The minimum period of accepting fixed time deposit shall be three months. The rates of
interest vary according to the duration of the deposit received i.e. the longer the deposit
remains in the bank the higher is the interest rate earned
 If the customer withdraws the deposit before the agreed upon maturity period, he/she
shall forfeit the contract interest rate, i.e., no interest will be paid on the deposited
amount.
 Interest will be calculated only for the duration of the certificate, i.e., no interest will
accrue after expiry of the certificate unless replaced by a new one.
 The minimum balance acceptable for fixed time deposit is birr 50,000
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Overdraft Account
 An over draft account is a form of credit facility by which a customer is able to draw an
amount up to the approved limit of the credit facility for the sole purpose of the day to
day operational needs of a viable and ongoing business.
 The account is opened based on the memo from Central Processing Centre (Finance and
Accounts) for disbursement of the overdraft approved.
Foreign currency account

 Foreign Currency account is an account in which the source of fund is overseas and can
be maintained in hard currency or in birr. A foreign currency shall be credited to account
based on the following conditions:
 Direct crediting of the account from foreign sources through the banking system.
 Traveler’s Cheque brought by the account holder from abroad.
 Cash notes provided that the account holder presents a signed and sealed foreign
currency declaration form from the Customs Authority.
 Cheque deposits that originate from abroad
Type of foreign currency account may include:

 Non-Resident Transferable Foreign Currency Account (NRT FCY).
 Non-Resident Transferable Birr Account (NRT )
 Non-Resident Non-Transferable Birr Account (NRNT)
 Foreign Exchange Retention Accounts for Exporters
 Foreign Exchange Retention Accounts for the Recipients of Inward Remittances
 Foreign Currency accounts in the name of Ethiopian and foreign nationals of Ethiopian
origin ( Diaspora a/c)
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Account Closing
 Any account (saving or current account)may be closed due to the following conditions:
 Request by the customer.
 When a customer reports loss of passbook with evidential documents.
 When there is a court order.
 As a result of death bankruptcy, insanity, etc. of the account holder
 Inactive current account to be closed on collection of service charges over a period of

time
 As a result of mal operation
 When a customer could not deposit a minimum amount of birr 25.00 within one month
after a savings account has been opened with zero balance.
Document requirement to open account

 Identification Cards (IDs) acceptable to open an account
 Kebele ID. Card
 Farmers Association ID card
 Employment and pension ID card
 School, College and University ID card
 Driving License
 Passports
 Work or resident permit
 Foreign nationals of Ethiopian origin identification card along with valid passport.
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Documents required to open a local currency accounts
(Savings and Demand Deposit Accounts)
Individual (s)
 One valid and renewed I.D. card.

 Two recent passport size photographs for savings account and one for demand
deposit account.
Individual trader (sole proprietorship)

 One valid and renewed I.D. card
 Renewed trade license
 One recent passport size photograph
 Tax Identification Number (TIN)
Private Limited Company

 Renewed trade license in the name of the company
 Memorandum and article of association attested, registered and sealed by the civil
status documentation and registration office.
 Letter of request to open and operate the account, which shall be signed by the
authorized person stated in the memorandum and article of association and bears the
company’s official stamp.
 Valid and renewed I.D. card of the authorized person to operate the account.
 Tax Identification Number (TIN).
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Organizations legally incorporated in the form of Partnership
 Renewed trade license and investment certificate in the name of the partnership.
 Partnership agreement attested, registered and sealed by the Civil Status

Documentation and Registration office.
 Letter of request to open and operate the account, which shall be signed by the official
stamp of the partnership, if any.
 Valid and renewed I.D. card of the authorized person to operate the account.
Share Company
 Renewed trade license in the name of the share company
 Memorandum and article of association attested, registered and sealed by Documents

Authentication and Registration Office
 Minutes of the board of directors with regard to the opening and operating of the
account.
 Letter of request to open and operate the account, which shall be signed by the board
chairman and bears the company’s seal.
 Valid and renewed I.D. cards of the authorized person to operate the account.
Cooperative Societies
 Cooperatives shall produce:
 Certificate of registration issued by the appropriate authority. However, if they are

under the process of formation a letter of authority from the respective organizing body
to this effect shall be presented.
 Approved and registered cooperative’s rules and regulations and each page of rules and
regulations shall bear the official stamp of the registering body and the cooperatives.
 Minutes of member’s resolution at the last general assembly. In case, they are under the
process of formation a letter of intent signed by all members.
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 A letter of request by the chairperson to open and operate current account.
 Valid and renewed I.D. Card of the authorized person.
Associations and club

 Associations and clubs could be professional and non-professional such as Teachers, Medical
Doctors, women, youth associations, Idir, etc
Associations and clubs shall produce:

 Certificate of registration obtained from their respective organizing authority.
 Rules and regulations of the associations, which bear the official stamp of the organizing
authority and the association of, club itself.
 Minutes of members’ resolution at the last general assembly appointing the executive
committee duly sealed by the organizing authority.
 Minute of the executive committee and request letter by the chairperson to open and
operate the account.
 Letter of request by the chairperson to open and operate the account.
 Valid and renewed I.D. Card of the authorized signatories.
Non-resident companies
 Permit from the National Bank of Ethiopia –NBE
 Memorandum of association
 Article of association
 Registration certificate
 A letter which states manner of operation and signed by the person for whom the
mandate is given by article of association
 ID card or passport of account signatories
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Non Resident Ethiopian and Foreign Nationals of Ethiopian origin
 Application forms properly filled and signed by the account holder
 For individuals, valid passport and/or identification card of foreign nationals of Ethiopian
origin applicant
 For businesses, certificate of ownership entitlement for the organization and/or article
and memorandum of association.
 For those who are not in a position to physically present to open the NR account,
application duly authenticated by the Ethiopian Embassies, correspondent banks or
remittance service providers which proves their identities
 One or more eligible depositors may jointly open a single account.
 The foreign currency accounts are to be maintained in the following types of currency
only by transfer from another type of non-resident foreign currency account owned by
individuals and/or enterprises or receipt through international payment cards/credit
cards
 The US Dollar
 Pound Sterling
 Euro
Exporters
 Application letter
 Trade license
Recipients of inward remittances

 Application letter
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 Valid and renewed I.D. card from employer organization, or deriving license, or passport
or Trade license.
 Evidence which certifies that the applicant is a regular recipient of foreign exchange
Detail process
Account opening and Closing Procedures
Account Opening Procedures
Account Opening (Local currency and foreign currency accounts)
Duties and responsibilities of each bank staff involved in the opening procedure are
listed as follows:
To give one window service and based on the new process. The name of the officer will
depend on the establishment of each bank.
Customer Service Officer – Maker
Attends customers at the counter, interviews, cross sells the bank’s product and
services.
Receives the relevant document from the customer based on the type of account
and the requirement needed and identify him/her properly.
Ascertains that the name of the applicant requesting to open a demand deposit
account does not appear in the mal operations list and ensures that the applicant
does not maintain another demand deposit account and/or savings account within
the same branch.
Issues account opening application form (see annex), cash or cheque deposit form
(see annex), (as the case may be) to be filled by the applicant and guides how to fill
the opening application form.
Checks that the required documents are properly filled out and signed by the
applicant. If the customer is blind or uses thumb print, attests the thumbprint using
rubber stamp “signed before me”.
Demessew Kassa
Makes the customer fill the first cheque requisition form requesting a cheque book
of 10 leaves and above as appropriate.
Fills the account number on the deposit slip, opening application form and cheque
requisition slip.
Maintains the customers’ account in the system.
Writes his/her name and signs on the application form on the space provided “Name
and signature of the maker” and forwards all the opening documents to the
Customer Service Officer-checker for checking and co-authorization.
After receiving the original documents from Customer Service Officer-Checker,

collects the cash or cheque to be deposited, counts it physically by verifying against
the denomination written on the deposit voucher and posts the transaction
Posts the amount to be deposited to the customer’s account.
If everything is in order, puts the Customer Service Officer stamp on the face of the
original and copy (computer generated) of the deposit voucher (for Cash or Cheque)
and puts his/her initial on same.
Delivers the passbook, gift pack, and welcome note, original documents (I.D, trade
license and other relevant documents) and computer generated receipt to the
customer.
Scan customers’ signature and relevant particulars as soon as the customer is out.
Passes the voucher to the Branch controller along with the run up in batches of
tickets.
Balances his/her cash at the end of cash hour and hands over to the Senior
Customer Service Officer at the cash office.
Customer Service Officer – Checker
Ensures that the account opening documents are properly filled and the opened accounts are
genuine.
Ensures that the customer is not in mal operation list.
Types the necessary particulars on the passbook (for savings account), Writes customer’s full
name and account number at the back of the photograph and attaches same on the passbook
(for savings account) and on the opening application form.
Demessew Kassa
Co-signs on all the account opening documents and passbook (for savings account).
Puts crossing stamp on the affixed photo by covering lower half part of it.
Returns the passbook, original documents received from the customer, gift pack, that includes
welcome note signed by the Branch Manager and give away materials, ID card, and deposit
voucher to the Customer Service Officer-Maker.
Forwards cheque requisition form filled by applicants to the Senior Customer Service Officer.
Prepares ticket for the cost of checkbook, sign and passes the appropriate entry after printing
Check and confirm scanned signatures.
Passes the opening documents like application form, a copy of ID card and trade license (if the
applicant is a trader) and relevant documents (if the applicant is an organization) to the Branch
Controller.
Senior Customer Service Officer

Cosign on the cheque requisition form and sends it to the Finance and Accounts.
Co- signs on the tickets and passes the following entry after printing the ticket,
Debit: customer’s account
Credit: account payable cost of cheque book.
Passes the following entry when the claim is received from Finance and
Accounts,
o Debit: account payable cost of cheque book.
o Credit: Finance and Accounts
Branch Controller (Auditor)

Collects all the opening documents from the Customer Service Officer-Checker and
post checks that the opening is done as per the bank’s policy and procedure.
Checks that the name of the newly opened account is not in the list of accounts
closed for mal operation.
Performs the due diligence (Verifies the address and validity of the customers’ ID
card) accordingly.
Demessew Kassa
Signs on the documents for the correctness and accuracy of daily opened account.
Opens new mandate file in the name of the account and keep the application letter
and relevant copy documents under his/her custody.
Joint accounts (AND or AND/OR)

When a request for opening a joint account (current or savings account) is received;
that is, ‘AND’ or ‘AND/OR’ account, the following procedures shall be followed:
All the procedures that are followed to open an account (current or savings account)
shall be applied except that the customers have to sign jointly on the application
form designed for the opening of an account.
The number of account holders of a joint account should not be more than three.
Each of the joint account holders must sign on the opening application form.
The opening application form should be marked “joint account” that is “and” or
“and/or”.
As to the operational procedures, both are treated like any other ordinary account.
However, in case of “and” account all account holders should sign for withdrawal
and in case of “and/or” account, one of the account holders can withdraw and can
give any written instruction.
An express joint consent of the owners is very essential to call for the involvement of
third party through power of attorney. In addition, there need to be a joint consent
to close the joint account.
Manager Customer Service

Deals with the customer to set the interest and deposit amount.
Request the customer to fill the application form and the contract designed for such
purpose.
Opening of Fixed Time Deposit Account

Whenever a customer wishes to open a Fixed Time Deposit account, he/she should be
interviewed by the Manager Customer Service and should be requested to complete the
standard format designed for the purpose (See annex
Demessew Kassa
Forwards the necessary documents to the CSO Maker at front.
Checks the opened account, prepare certificate of deposit and cosigns with the CSO-
Maker on the tickets and certificate of deposit.
Makes the customer sign on the registered copy confirming receipt of the certificate of
time deposit
Acknowledge the customer and forward the deposit certificate and the advice to the
customer.
Keeps custody of the application form, register copy and debit or credit advice under a
separate mandate file.
Up on request for renewal, he/she collects the old certificate and issues a new one.
Acknowledge the customer and forward the deposit certificate and the advice to the
customer.
Keeps custody of the application form, register copy and debit or credit advice under a
separate mandate file.
Up on request for renewal, he/she collects the old certificate and issues a new one
Customer Service Officer- Maker

If the deposit is made in cash, collect the cash, prepares the necessary credit ticket with
advice, sign and put CSO stamp on the ticket
If the deposit is to be made by the debit of the applicant’s account, prepares the debit
and credit ticket, sign and forwards to the Customer Service Manager.
If the deposit is made by cheque, the procedure stated under Negotiable Instruments
deposit to account shall be followed.
Maintains the fixed time deposit account on the system.
Forwards the application form, register copy and debit or credit advice depending on
the mode of payment to the Customer Service Manager.
Opening of an Overdraft Account

Branch Manager/Customer Service Manager
Demessew Kassa
Receives memo from the Credit Central Processing Centre (Finance and Accounts)
Enters in the system the necessary particulars mentioned in the memo to the
appropriate account.
Forwards the memo to back office Maker for preparation of the necessary debit/credit
tickets.
Cosigns on the prepared tickets and forwards the memo to the Branch Controller.
Checks and cosigns interest and reversal entry tickets at the end of each month.
o Customer Service Officer- Back Office Maker

Receives memo from the Manager Customer Service and prepare the necessary tickets.
Sign, posts and forwards the tickets with the memo to the Manager-Customer Service.
o Branch Controller
Receives memo from the branch manager/manager customer service.
Ascertains that the memo is signed by the concerned authorized person
Checks that the debit credit transfer ticket and interest ticket are in order, the details in
the memo are properly entered on the system and forwards the memo to Customer
Relationship Officer.
Initials all the details appearing on the computer and status change report.
Checks and balances daily debits and credits on the posting journal with the daily
journal.
Receive the passbook/unused cheques from the customer as appropriate.
Checks that there are no wrong debit/credit entries into the account, as well as
credit/debit entries in transit.
Update the balance and prepare and sign the necessary tickets.
Forwards the tickets to the CSO-Checker for cosigning.
Effect payment as per the payment procedure.
Cancel the passbook/cheque if any, and forwards to the branch controller.
Demessew Kassa
Account Closing Procedure
Closure of Account Maintained Within the Branch
Customer Service Officer- Maker (at the front)

Attend the request to close the account.
If the closure is due to loss of passbook, make the customer to fill the declaration form, verify
the signature and charges birr 25.00 for loss of passbook.
o Customer Service Officer-Checker

Ensures that there are no wrong debit/credit entries into the account, as well as credit /debit
entry in transit
Checks properly the entry that brings about the closure of the account and cosigns on the
prepared tickets.
Ensures that the passbook/unused Cheques are collected from the customer and cosigns on the
tickets.
o Branch Controller
Receives the cheque/passbook or ticket that brings about the closure of the account and checks
the proper presentation and accuracy.
Places the documents (Account opening application form, unused cheques/passbook) in “closed
account” file in order.
Destroys the unused Cheques in the presence of the Manager Customer Service and CSO-maker.
Collection
Collection of Cash for Deposit
Customer Service Officer-Maker

Receives the cash, deposit slip and passbook (if any) from the depositor and checks
whether it is properly filled and signed by the depositor.
Ensures whether amount in words and figure are similar on the deposit voucher.
Demessew Kassa
Counts the cash physically by verifying against the denominations written on the deposit
slip or write the denomination on deposit slip for savings account
Checks name and account number on the deposit slip against system and credits the
customer’s account and updates the passbook balance, if any.
If the deposit is to be made to the inactive account or the newly opened account, the
referral should be forwarded to the Manager – Customer Service.
Print computer generated receipt, puts Customer Service Officer Stamp and initials on
the deposit voucher and print out.
Hands over the computer generated slip to the customer as a receipt and keeps the
deposit voucher for further balancing and recording.
At half day and day end closing, takes run-up of tickets, balance against the computer.
Hands over the deposit voucher along with other daily transaction tickets to the branch
controller and the cash to the senior customer service officer.
Collection of Negotiable Instruments for Deposit

 Local Cheques
 Cheque drawn on the same branch

Collects the cheque along with the filled in cheque deposit slip from the depositor.
Checks the proper presentation, genuineness and completeness of the cheque i.e.
(date of cheque, name of payee/beneficiary and its proper endorsement, the
agreement of amount in words and figures and where it is properly signed).
Checks that the particulars filled in the cheque deposit slip are similar with that of
the cheque received for deposit and signed by the depositor. Also, checks that
original and copy are identical.
Verifies signature of the account holder appearing on the face of the cheque.
Verifies signature, and passes both debit and credit entries if the limit is within
his/her discretionary limit otherwise forwards referral request for dual
authorization.
Demessew Kassa
Puts ‘crossing stamp’ on the face of the cheque and ‘received for deposit pending
clearance stamp’ at the back of the cheque and on the face of the deposit slip, and
hands over the receipt to the depositor after putting his/her initial on same.
Forwards both the posted cheque and the cheque deposit slip to the branch
controller after balancing.
Customer Service Officer-Checker
Responds the referral request based on the limit forwarded to him/her after checking
the genuineness and correctness of the transaction .
Cheque drawn on other city branches

Collects the cheque along with the filled in cheque deposit slip from the depositor.
Checks the proper presentation and completeness of the cheque i.e. (date of cheque,
name of payee/beneficiary and its proper endorsement, the agreement of amount in
words and figures and where it is properly signed).
Checks that the particulars filled in the cheque deposit slip are similar with that of the
cheque received for deposit and signed by the depositor. Also, checks that original and
copy (copies) are identical.
Request the customer’s preference for clearance either on a special or normal basis.
If the clearance is on a special basis, prepare credit with advice ticket, signs on it and
collects the necessary service charge from the customer.
Gives the cheque deposit receipt to the depositor after putting “crossing stamp” on the
face of the cheque and “received for deposit pending clearance stamp” at the back of
the cheque, on the original and receipt of the cheque deposit slip and initials on same
for its correctness and completeness.
Passes the cheque to the back office maker-CSO on the spot for preparation of the
appropriate claim tickets (Normal or special clearance)
Demessew Kassa
Normal cheque clearance
Customer Service Officer –Maker (at back)
 Accepts the cheque together with the cheque deposit slip from the front line maker-CSO
and ascertains that the proper formalities are fulfilled i.e. the cheque is in order, crossed
and received for deposit pending clearance stamp is put at the back of the cheque and
on the faces of deposit slip and initial.
 Sorts out the cheques by their respective branch or bank.
 Takes run up of the whole deposit slip and the total of each branch’s/bank’s cheques.
 Compares the balance of total deposit slip against the total of all cheques.
 Types the appropriate details on the four-set OBC ticket by branch, signs and gets it
cosigned by checker-CSO and fills in the summary sheet outward column the total value
of each bank branch cheque.
 Dispatches the Cheques along with the first and second page of the four-set OBC and
summary sheet to the Finance and Accounts with sealed envelope.
 Prepares single entry ticket for the total value of Cheques claimed by annexing the third
copy of the four set OBC claim.
 Passes transaction on the OBC memorandum account after the singly entry ticket is
signed by the Customer Service Officer-checker (at the back).
 Forwards the respective deposit slip along with the fourth copy of OBC claim to the
Customer Service Officer - Checker.
Customer Service Officer – Checker (at the back)

Signs the single entry ticket.
Files the respective deposit slip together with the fourth copy of OBC claim and
keeps under custody until the claim is responded.
Balance weekly the total tracer against the total deposit slips and the general
position under OBC memorandum account.
Demessew Kassa
Special Cheque Clearance
Customer Service Officer-Maker (at the back)

Accepts the cheque together with the deposit slip from Customer Service Officer-maker
(at front) and ascertains that the proper formalities are fulfilled.
Sorts out the cheques by their respective branch or bank
Takes run up of the cheque and deposit slips and compare the balance.
Prepares OBC claim ticket and sends the cheque together with three copies of the claim
ticket to the respective issuing branch via the branch messenger or delegated person.
Forwards the fourth copy of the claim ticket along with the deposit slip to the Customer
Service Officer - checker.
Receives the deposit slip marked cleared along a copy of the claim ticket from the
checker when the cheque is cleared and posts the beneficiary’s account.
Passes the deposit slip and the claim ticket to the branch controller .
Customer Service Officer – checker (at the back)

Checks that the cheque is in order, the special clearance claim is prepared, cosigns the
claim and passes it to the CSO-maker (at the back).
Keeps the fourth copy of the OBC claim ticket along with the deposit slip in a separate
box file until the claim is responded.
Receives the responded claim ticket from drawee branch, verifies the two signature on
it, mark cleared on the respective deposit slip and passes same to the Customer Service
Officer –Maker( at back)
Demessew Kassa
CPO (Issued by DBE branches) accepted for deposit
Customer Service Officer – Maker
Accepts the CPO from the customer and ensures that the CPO is properly presented i.e.
date of the CPO , name of the originating branch , payee’s full name, amount in words
and figures are all in order and is signed by two authorized signatories.
Makes the customer to complete the cheque deposit slip with carbon copy.
Checks that the particulars filled in the cheque deposit slip are similar with that of the
CPO.
Puts crossing stamp on the face of the CPO and Customer Service Officer stamp at the
back of the CPO and on the deposit slips, his/her initial on same and forward to the
checker.
Upon getting dual authorization from the respective checker, credit the customer’s
account and puts initial on both the CPO and deposit slips.
If the customer appears in person, hands over the advice otherwise forwards to the
branch controllers.
Customer Service Officer – Checker (at the back)

Checks that the CPO is in order i.e., the date, name of the originating branch, payee’s
full name and amount in words and figure.
Inserts the data on the system and decodes the tested message on the face of the
demand draft.
Verifies signatures on the face of the CPO.
Checks that the CPO is properly endorsed. If the endorsee is an enterprise or

organization, makes sure that the CPO contains authorized signature (s) and official
stamp of that particular enterprise or organization.
Checks that the payee is identified to the satisfaction of the bank.
Prepares claim ticket, signs and forwards to the Customer Service Officer-maker (at the
back office)
Demessew Kassa
Returns back to the customer service officer – maker (at the back) for the amount to be
credited after ensuring the validity of the CPO
Customer Service Officer – Maker (at the back)

Co-signs, passes debit and credit entries of the claim ticket.
Debit: UE- certified payment order paid
Credit: Customer Account
Forwards the claim ticket to the Finance and Accounts and the cheque deposit slip to
the Branch controller.
Clearance of other banks Cheques,

CPO’S and Drafts through DBE branches
Government and private banks’ Cheques or Drafts or CPO’s drawn on only AA city
branches can be accepted for deposit to current account or saving account either in
collection or on a special clearance basis.
The Customer Service Officer-Maker

Collects the cheque, CPO or draft along with the filled in deposit slip from the depositor.
Checks the proper presentation and completeness of the cheque, CPO or draft.
Checks that the particulars filled in the deposit slip are similar with that of the cheque,
CPO or draft received for deposit i.e. name of account holder or endorsee, cheque
number, CPO number or draft number, amount and whether it is signed by the
depositor or not.
Put crossing stamp on the face of the cheque, CPO or draft, Customer Service Officer
Stamp at the back of the instrument and on both the original and receipt of the deposit
slip and initial on all the documents.
Hands over the receipt/advice to the depositor after putting his/her initial
Forwards the cheque, CPO or draft and the deposit slip to the Customer Service Officer-
Maker (at the back) for the preparation of appropriate claim.
Demessew Kassa
Normal Cheque Clearance
When the customer wants the negotiable instrument to be cleared on normal clearance
basis the following procedure is followed.
The Customer Service Officer-Maker (at the back)

Prepares annex form A and OBC tickets in four copies, signs and forwards to Senior
Customer Service Officer.
Sends the 3 copies of annex form A and OBC ticket along with the deposit slip to Finance
and Accounts and prepares single entry ticket with the total of OBC ticket.
Receives the deposit slip marked cleared along with two copies of annex form A from
the Senior Customer Service Officer and attaches one copy of the annex form A to the
deposit slip.
Posts the beneficiary’s account and prepares reimbursement claim , signs and get it
cosigned by checker-CSO
Sends the first and second page of the reimbursement claim along with one copy of
annex form A to be sent to Finance and Accounts.
Passes the deposit slip along with one copy of annex form A and the reimbursement
claim to the Branch Controller.
Customer Service Officer-Checker (at the back)

Checks that the cheque is in order, the appropriate clearance tickets is prepared, co-
signs the claim and pass it to the back office maker-CSO.
Keeps the fourth page of the claim along with one copy of the annex form A until the
claim is responded through a credit summary.
Branch Controller
Receives the tickets from the Customer Service Officer-Maker and checks against the
posting journal for compliance
File the documents under custody
Demessew Kassa
Special Cheque Clearance
Customer Service Officer-Maker (at the back)
Accepts the CPO together with the deposit slip from Customer Service Officer-maker
(at front) and ascertains that the proper formalities are fulfilled.
Sorts out the CPO’s by their respective branch or bank
Takes run up of the CPO’s and deposit slips and compare the balance.
Prepares annex form E with four copies, signs and put-crossing stamp on each annex
form E.
Sends the CPO together with three copies of annex form E to the respective issuing
branch/bank via the branch messenger or delegated person.
Forwards the fourth copy of annex form E along with the deposit slip to the Senior-
Receives the deposit slip marked cleared along with two copies of annex form E
from the Senior Customer Service Officer, posts the beneficiary’s account and
prepares reimbursement claim annex form A in five copies, signs and get it cosigned
by checker-CSO
The first and second page of the reimbursement claim along with one copy of annex
form A and E will be sent to Finance and Accounts
Passes the deposit slip along with the third copy of the reimbursement claim an d
both one copy of annex form A and annex form E to the Senior Customer Service Officer.
Customer Service Officer-Checker (at the back)
Checks that the cheque is in order, the special clearance claim is prepared, cosigns
the claim and passes it to the back office maker.
Keeps the fourth copy of annex form E along with the deposit slip in a separate box
file until the two authorized copies of annex form E is received from the drawee
branch
Demessew Kassa
Receives the authorized two copies of annex form E from drawee branch, verifies
the two signature on it, mark cleared on the respective deposit slip and passes same
to the Customer Service Officer –Maker at back .
Keeps the fourth page of the reimbursement claim and one copy of annex form A
until the claim is responded.
Foreign Cheques
Outward Bills Purchased (OBP)
Receives Bank Cheque issued by correspondent banks or money transfer and
exchange companies who have maintained account with COMMERCIAL BANK along
with Customer’s ID card.
Checks the name, validity date (five months from the date of issue), the issuing bank
and the bank where the Cheque is to be drawn and sends to the Manager Customer
Service.
Refers to ‘stop payment list.
Makes the customer fill the deposit voucher, and check the voucher, initial on the
voucher, write ‘accepted for collection’ and stamp it with Customer Service Officer
stamp teller stamp.
Makes the customer countersign at the counter in his/her witness for travelers
checks compare the signatures or Makes the customer endorse the Cheque,
If the deposit is made into the accounts of an organization, proper office stamp and
authorized signature is necessary and verified accordingly as endorsement
Puts crossing stamp and perforates the Cheque/traveler cheque to avoid double
negotiation.
Register the details (the date on which the Cheque received, name of the beneficiary
,Cheque number, drawee bank’s name, currency type and face amount of the
Cheque both in foreign and local currency, date settled)of the Cheque/traveler
cheque on the system
Demessew Kassa
Generates and sign the ticket if it is with in his/her payment authorization limit or
sends to the Manger Customer Service/ Customer Service Officer-checker for co-
signing.
Credits customer account/pays cash if it is with in his/her payment authorization

limit or sends referral to the Customer Service Officer/Manager Customer Service
and passes necessary entries to reflect the transaction( prepares single entry ticket),
and give the copy of the deposit slip to the customer.
o If it is bank cheque/traveler cheque
Debit: UE-foreign OBP
Credit: Customer Account/Cash
o If the cheque is issued by money exchange companies
Debit: UE-claims on H/O and Branches
Credit: Customer Account/Cash
Forwards the Cheque with cover, change control copy, debit ticket for correspondent
account and claim to the Senior Customer Service Officer for further checking and
dispatching to the Finance and Accounts.
o Senior Customer Service Officer

Receive the Cheque with the deposit slip , verify the genuineness and validity of the
Cheque, register and assign reference number, retain photocopy of the Cheque and co-
sign the instrument and return to the maker for processing
Puts crossing stamp, perforates the Cheque, retains photocopies of all Cheque
Dispatch the Cheque to the Finance and Accounts to be sent to the respective
correspondent bank for collection
follow-up settlement of Out ward Bill Purchased/Out ward Bill Collections
o If items sent for collection are not settled within 20 days from the date of
dispatch, the first tracer should be sent by using copy of the form or SWIFT.
Thereafter tracers should be followed up every 20 days. However, before
sending any tracer to reconciliation department/Finance and Accounts must be
contacted as proceeds might be already credited to or account.
Demessew Kassa
If the items remain outstanding for more than three months, the correspondent bank to
which, the Cheque were dispatched, should be requested to return the uncollected
items.
When uncollected Cheque is returned, customer should be asked to refund all out-of-
pocket expenses such as SWIFT, postage, correspondent charges etc. and the Cheque
has to be handed over against presenter’s signature.
Upon receipt of settlement advice from our correspondent banks, settles the OBP on the
system and passes the following entry.
Debit: H/O
Credit: UE-OBP foreign

Checks, signs and responds the referral and forwards to the Customer Service Officer-Maker.

Ascertain and determine the received cheque whether to be paid in OBP or OBC basis
and forwards to the Customer Service Officer-Maker for processing.
o Outward Bills for Collection (OBC)

Cheque specified under OBC, are not out rightly purchased at the bank’s counter but
accepted on collection basis under OBC-foreign. Payments for the presenter would be
only made after confirmation is received from the respective correspondent bank
abroad for the credit of the proceeds and advice of credit is received.
o Customer Service Officer- Maker

Accepts the instrument with valid ID and check the particulars written on Bills.
Makes the customer fill the deposit voucher, initial on the voucher marking ‘accepted
for collection’ and stamp with CSO-stamp.
Makes the customer endorse the Cheque.
Demessew Kassa
Passes the Cheque with the deposit voucher to the CSO maker at back office for the
preparation of the OBC ticket – foreign and stamping the endorsement and crossing
stamps etc.
Signs and forwards to the Senior Customer Service Officer for co-signature.

 Follow similar procedure as stated on OBP a-d above.
 Upon receipt of settlement advice from our correspondent banks
 Pass single credit ‘OBC foreign’ entry in reversal of the original single
debit entry
 Mark the date settled column of the OBC register on the system
o Handling of responded claim of negotiable instruments

When responded claim of negotiable instruments are received from COMMERCIAL
BANK branches, other Government bank branches and private banks of AA city branches
through a credit summary, the following procedures shall be adhered to.

Accepts the credit summary from their district office and head office as appropriate.
Checks and ascertains that the credit summary is destined to the branch within the time
set and put the branch’s date stamp and initial on it to confirm the date received and
verifies the two authorized signatures appearing on the credit summary sheet.
Checks that each responded item (credit) ticket bears two authorized signatures of the
respective responding branch and passes to back office maker for preparing single entry
credit ticket
Counter checks the completeness and correctness of each deposit slip against the
corresponding responded OBC claim and tracer. Signs the prepared single entry credit
ticket, put cleared stamp on the deposit slip and signs on it.
Passes the deposit slip to back office maker for posting and the single entry credit ticket
annexed with the respective responded OBC claim
Demessew Kassa
If the respective OBC claim is responded partially due to various reasons, prepare single
entry credit ticket with full value of the claim and adjusted credit ticket with advice for
the credit of the respective current account.
Passes the returned item i.e. cheque or CPO to the back office maker to be registered on
the system and given to the respective customer against signature.
If the responded OBC claim is special clearance, mark the tracer settled and passes the
respective credit ticket to the branch controller.
o Customer Service Officer – Maker (at back)

Prepares single entry credit ticket on the strength of the responded OBC claim, sign and
passes to the Senior Customer Service Officer
Accepts the deposit slip/adjusted credit ticket from the Senior Customer Service Officer
and ascertains that a cleared stamp is put on its face and cosign.
Counter checks the name and account number written on the deposit slip agrees with
that of the account holder data entered in the computer system/ledger
Posts the respective amount to the proper account and put his initial on the space
(posted by) column
After posting, passes the deposit slip to the Branch Controller for checking compliance
us usual.
Accepting claim of negotiable instruments

When claims of Cheques, CPO’s and others are received, the claim-accepting branch
shall follow the following procedures:
Customer service Officer – Checker (at the back)

Accepts the claim along with the respective cheques from Finance and Accounts or
from other COMMERCIAL BANK branches or other banks
Checks that all cheques and CPO claimed are drawn on the branch
Checks the proper presentation, completeness and correctness of the CPO and Cheques
marks settled on the respective tracer and passes to the back office maker along with
the claim and credit ticket (cover).
Demessew Kassa
Verifies signatures on the claim ticket and forwards the cheque to back office customer
service officer- maker for signature verification.
After the respective customer’s account is debited (for cheques) or the account payable
is debited (for CPO), on the claim and passes to the customer service officer –Maker (at
the back) for co-authorization.
Signs on the summary sheet and forwards to the respective Finance and Accounts.
Keeps copy of the credit summary sheet under a separate file for future reference
Customer service officer- Maker (at the back office)

Checks the proper presentation of the cheque and verifies the customer’s signature
Debit the respective customer’s account with in his/her PAYMENT ATHORIZATION LIMIT
and returns back to the Senior Customer Service Officer.
Co-signs on the claim ticket and respond accordingly.
Prepares credit summary and signs on it
Payment
Duties and responsibilities of each bank staff involved in the payment process are listed
as follows:
Payment from Current Account

 Local Cheques
 Customer Service Officer-Maker
Accepts the cheque and I.D. card (if the payee is other than the account holder) from
the payee.
Checks the genuineness and completeness of the cheque i.e. dates of cheques, amount
in words and figures agree, properly signed by the account holder, and proper
endorsement.
Identifies the customer at the back of the Cheque, if the bearer is other than the
account holder otherwise mark “Account holder” at the back of the cheque.
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Verifies the signature of the drawee and debits the appropriate customer’s account.
If the amount to be paid is above his/her authorization limit, forwards the document to
the respective Customer Service Officer-Checker/Customer Service Manager.
Requests the customer what type of denominations he/she requires.
Writes down the denomination required at the back of the cheque and pays
accordingly.
Puts the Customer Service Officer Stamp and initials on the face of the cheque.
Takes run-up of the cheques, balance against the computer and signs on the run-up
paper.
Hands over the cheque along with the daily transaction tickets to the branch controller
after balancing and initialing.
Customer Service Officer-Checker/Customer Service Manager

Checks the correctness and completeness of the document and cheques for payment
and responds the referral based on the authorization limit assigned for.
FCY Cheque (NRT, NRNT)

Accepts the cheque and I.D. card from the payee, if the payee is other than the account
holder.
Checks the genuineness of the Cheque and identifies the customer at the back of the
Cheque, if the bearer is other than the account holder otherwise mark “Account holder”
at the back of the cheque.
Verifies signature on the Cheque.
Make the necessary conversion applying the prevailing exchange rate and the service
charge.
Make the necessary posting to the respective account.
Sends referral to the Customer Service Officer-Checker/CSM for cheque values above
his/her authorization limit and pays cash to the customer.
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Customer service Officer- Checker
Checks the endorsement, date drawn, amount in words and figures, signature of the
drawer, account number and payee’s name.
Prepares service charge ticket, signs, posts and forwards to the Customer Service
Officer-checker for co-signing
Looks in to the identification and verification on the cheque.
Check the correctness of exchange rate conversion (if the Cheque is FCY), and responds
the referral request through the system.
Branch Controller
Collects the cheque along with the daily transaction tickets from the Customer Service
Officer-Maker and the daily posting journal from Senior Customer Service Officer.
Checks the completeness and payment of the cheque based on the discretionary limit.
If the cheque is for cash payment, checks that it bears Customer Service Officer Stamp
and initial on the face of the cheque.
If the cheque is for deposit, checks whether the cheque crossed at the front bears
Customer Service Officer Stamp at the back and initialed by the Customer Service
Officer-Maker.
Ensures that the Cheques are identified (if any) and endorsed either by the beneficiary
and last payee.
Checks that whether it is posted to the proper customer’s account and corresponding
customer’s name.
Put tick mark on the particulars of the posting journal, i.e. account number, cheque
number and amount and initials on the respective Cheques.
Takes run up of total debit tickets and balances against the daily posting journal.
Files all daily tickets (payment instruments) along with the run up in accordance with
general ledger classification and keep it in his/her custody.
than birr. 100. - are subject to service charges of birr.10. - Semi-annually. Accounts that
carry balances of birr.10.0 and below will be closed by the collection of services charges.
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Referral should be requested for deposit/withdrawal to inactive or newly opened
account.
Handling and issuance of cheque books

Receives the cheque requisition form from the Customer, Verifies the signature and
puts his/her initial on the space provided.
Forwards the cheque requisition form to the Manager customer service/Senior

Customer Service Officer for further action
Customer Service Officer- Maker at back

Prepares ticket, posts the cost of cheque book to the appropriate account
Initials on the space marked “posted by” column
Passes the posted cheque requisition form to the Manager Customer Service/Senior
Manager Customer Service/Senior Customer Service officer

Accepts the cheque requisition form from the Customer service officer-checker
Checks the proper presentation and completion of the cheque requisition form i.e. the
account title, account number and forms of cheque books required
Checks that signature of the account holder on the cheque requisition form is verified
Writes the total cost of cheque book/books on the cheques requisition form and pass to
the Customer Service officer-maker at back to debit from the appropriate account
Sends the cheque requisition form to the CATS Finance and Accounts.
Collects the personalized cheques from Finance and Accounts and informs the customer
to collect
Hands the personalized cheques to the customer up on registering and make sign the
customer.
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Preparation of Current Account bank statement at the end of each
month
Generally bank statement is prepared centrally by IT-Data Center.
The Bank statement should be issued to the customer by the Branch Controllers.
Negotiability and Endorsement of Cheque

Endorsement of Cheque
Endorsement as the name signifies should appear on the reverse side of the cheque.
The number of endorsements on the cheque has no limit as indicated in the commercial
code of Ethiopia article number 844 (1)
The following are types of endorsement, which are applicable in our bank.
Self: if cheque(s) is issued for “self” the maker should ascertain that the cheque has
been endorsed by the drawer
Cash or bearer: if a cheque is drawn to bearer or cash, the maker should insure that the
cheque has been endorsed by the presenter
Specified person: the payee is identified right at the counter and will be asked to
endorse the cheque
If the cheque issued to the order of specified person followed by the word “only” or if
the word “payee only” is written on the top left corner of the face of the cheque, only
the payee can cash it.
If the cheque is issued in the name of corporation, cooperatives, associations and

government entities; such cheques are not paid in cash but will be credited to the
beneficiaries account. The cheque “(s)” must bear a seal of the beneficiary for
endorsement whenever possible
If the cheque is issued to the order of two individuals, payees are identified and are
asked to endorse cheque(s) drawn in their favor.
If a cheque is issued in the name of alternative individuals, anyone of the individuals

must be identified and be asked to endorse the cheque
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Crossed cheques are not at all paid in cash but they must be deposited in to the account
of the payee.
The Use and Transferability (“Negotiability) of Cheques

Cheques generally crossed
Such cheques bear two transverse lines across their faces. They can be paid only to a
customer of a branch (account holder). Payment can be effected either in cash or by
credit to account. Such cheques are transferable by endorsement only for the credit of
an account.
Restricted negotiability of cheques

Cheques bearing phrases such as “payable to account”,” account payee only” in addition
to general crossing can be paid to the payee in cash or credit to account. The payee
must have an account in the branch. Such cheques are not transferable by
endorsement.
Cheques issued in the name of organizations or legal

bodies
Unless the cheque are restricted by conditions explained under items a and b above
cheques issued in the name of organizations are transferable to other organizations or
individuals like any other cheques if it is sealed and endorsed by the authorized
signatories. However, if endorsed to individual the last endorsee should bring
confirmation letter from the payee/organization.
Stop Payment Order

Stop payment on cheque can be replaced for various reasons as might be given by the
account holder. The widely known are theft and or loss of cheque. Any order that
contravenes the legality of checks must not be accepted.
At the time of placing stop payment order, there must be sufficient fund in the account
that covers the value of the cheque requested to stop payment. The amount of the
cheque under stop payment order will not be withdrawn until the account holder gives
cancellation of the stop payment order in writing.
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In the case of overdraft account, if stop payment order is placed reduce the limit to the
extent of the amount of the cheque payment stopped so that the amount will not be
withdrawn until cancellation order is given.
On the other hand, however, when a blank cheque(s) are reported lost the account
holder is not obliged to deposit money to his/her account upon presenting the stop
payment order.
Besides, of the blank cheque reported lost are many in number, the account holder may
be advised to open another current account after closing the existing account to
overcome any further eventualities.
Request for Stop Payment Order

Receives written application that indicates the reason for stop payment from the
account holder.
Makes sure that the stop payment order is genuine and acceptable.
Checks and ascertains that the cheque on which stop payment is placed is not
withdrawn from the account prior to receipt of the stop payment order.
Gives the standard stop payment order form to the account holder.
Makes him/her complete the form and sign.
Verify the signature on the form.
Enters relevant particulars in the computer such as cheque number, amount, date and
name of the payee.
Forwards the stop payment order form to the Senior Customer Service officer.
Senior Customer Service Officer-

Keeps separate records (list of accounts placing stop payment order) under custody.
Pass the relevant documents to the branch controller for further checking of
compliance.
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Branch Controller
Receives the documents from the checker, checks for compliance and files properly.
 Cancellation of Stop Payment Order
 Customer Service Officer-Maker
Receives written application form from the account holder who placed the stop
payment order previously for cancellation.
Verify the signature on the application form against the system
Makes the customer sign on the stop payment order form for the cancellation of the
order on the space provided
Enters the necessary particulars from the cancelled stop payment order form to cancel
the stop payment order placed previously, sign and pass the documents to the checker
for cosigning.
Senior Customer Service Officer-Checker

Cosign the request for cancellation of stop payment order
Pass the documents to the branch controller for checking for compliance and filing
Branch controller
Receives the documents from the checker, check for compliance and file
Insufficient Fund Cheques

There are incidences where a customer could make an honest error in his/her
bookkeeping or could have cheque(s) that is/are deposited in his/her account not
cleared or returned or could have local or foreign transfers or approved loan not
credited to his/her account due to the incompleteness of various internal operation;
procedures of the bank etc. these could be considered as acceptable excuses for issuing
insufficient fund cheques, which will happen infrequently.
In general, it is quite easy to determine if a customer is knowingly issuing

insufficient fund cheque.
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Therefore, to maintain proper control of insufficient fund cheques, the following steps
shall be followed.

Checks the balance of the account holder in the computer and if there is no fund
to cover the amount stated on the cheque, passes the cheque to the checker to
check if there are any deposit in transit.
If there are no any credit entries to be credited to the customer account, signs
on the cheque returned slip and pass it to the checker for co signature.

Maintains a separate register on the system for registering cheques returned unpaid
due to insufficient fund. The register on the system should contain the following
headings in each column:
Entry date and time (date and time where the cheque is presented at the branch for
payment)
Name of account holder including grandfather’s name
Account number
Address and or telephone number
Date of cheque
Cheque number
Name of payee/beneficiary
Amount of cheque
Balance in the account at the time the cheque is presented for payment at the branch
Action taken by the branch, it could be either of the following three as per the NBE
directive:
First warning letter served on ………
Second warning letter served on. ……and birr…charged on...
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Account closed on………..
Upon receipt of the cheque returned from the Manager Customer Service/CSO-Checker,
checks that the returned slip is filled in with the appropriate particulars, sign and bears
an official stamp of the branch.
Ascertains that the name of the account holder, whose cheque is returned for
insufficient fund, does or does not appear in system for insufficient fund cheques
Registers the particulars of the cheque on the cheque returned for insufficient fund
register on the system as stated under (a) above and handover the cheque affixed with
the returned slip to the checker for co signature
Prepares the appropriate warning letter as per NBE directive and charges (if any) and
forwards same to the Manager Customer Service/ Customer Service Officer- Checker for
appropriate checking and co signature
Customer Service Officer- Checker/Manager Customer Service

Upon receipt of the cheque returned unpaid due to insufficient fund from the maker,
checks all the possible credit entries that might have not been posted to the customer
account i.e. from cash cheque clearance, loan, foreign and local transfers.
Having satisfied him/her that the cheque is not covered with sufficient fund, fills the
appropriate information on the cheque returned slip, cosigns on same and put the
official stamp of the branch.
Affixes the returned slip on the cheque and register on the cheque returned for
insufficient fund register on the system
Ascertains that the appropriate warning letter with charges (if any) as stated below is
prepared on the same day, checks and cosigns on same and follows up its delivery to the
account holder by the fastest available means.
If a cheque is returned unpaid due to insufficient fund for the first time, no charge shall
be levied, however, the account holder shall be served with an official first warning
letter.
If a cheque is returned unpaid due to insufficient fund same account for the second
time, serves the customer with last warning letter quoting the first warning letter as a
reference (see annex) and charge (debit) the customer account with 5% of the amount
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appearing on the insufficient fund cheque and credit other income service charge local
account.
However, if there is no sufficient fund in the account even to cover the charges leave
birr.1.00 in the account balance charge (debit) the customer account with the rest of the
amount and follows up the customer’s account closely to recover the unpaid amount of
charges.
If a cheque is returned unpaid due to insufficient fund from same account for a third
time, no charges shall be levied but customer’s current account shall be closed
automatically and be advised in writing to return all the unused cheques to the branch.
If two or more cheques are presented on a given current account for payment at the
same time and if there is not sufficient fund to cover the amount of the cheques, take
appropriate action as stated above for each cheque in accordance with the sequential
order.
Informs the Branch Controller in writing the closure of the current account by the
fastest available means (see annex)
Upon receipt of the branch does letter the controller shall circularize immediately to all
COMMERCIAL BANK branches to deny services of current already exist at any branches
under such name. Further, sends a report to the NBE supervision department regarding
the closure of the current account of such customer at COMMERCIAL BANK branches
due to mal-operation.
Upon receipt of the report, the NBE supervision department shall register the name of
such customer in the delinquent list of current account number misuses and sends
information to all banks (Government and private) to deny services of current account
to such customer and close all already existing current accounts under such name.
Send to the claiming branch along with the appropriate claim if presented through
special or cheque clearance system.
Branch Controller
Receive the documents from the checker, check for compliance and file
Rubber Stamps
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A wide variety of rubber stamps are being used in the bank. The types of rubber
stamps used must be recorded in the stamps catalogue/computer system of the
bank.
As stamps are sensitive by nature they may cause great damage if left accessible to any
one. Thus, the staff members who keep custody of rubber stamp should bear in mind
that all rubber stamps must be kept under lock when not in use. The following are steps
to be followed in handling rubber stamps.

Lodges stamp requisition letter by indicating new and/or replacement to Central
Service.
Registers all stamps received from their respective supply offices in the system prepared
for this purpose.
Issues the stamp to the proper staff that makes use of it against his/her signature in the
system prepared for this purpose.
Checks periodically that the proper handling of stamp by the designated staff whenever
he/she keeps the stamp under lock after office hours without fail.
Collects old rubber stamps whenever replaced by a new one.
Makes sure that when a staff is transferred to and from the branch, the incoming has to
take over the rubber stamp against his/her signature in the register system.
Reviews the register in the system periodically and makes sure that it is properly
updated.
Staff members holding bank’s rubber stamps

Receives the rubber stamps.
All staff members holding COMMERCIAL BANK’S rubber stamps are responsible for all
stamps they received against their signature.
At the end of the day every rubber stamp should be kept under lock by the staff that
received it against his/her signature.
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When staff members are transferred to and from a branch/Finance and Accounts both
the handling and taking over staff should see to it that the register on the system for
rubber stamps is updated and the rubber stamps physically exist.
Customers’ Standing Instruction

It is cardinal principle of banking that all customers’ instruction must be in writing and
signed with the customer’s original signature, which should be verified.
Once the standing instruction is placed it will remain valid for an indefinite period unless
otherwise the account holder gives cancellation instruction in writing.
The customer has to pay service charge for each transaction of standing instruction as
stipulated in the terms and tariff.

Receives a signed standing instruction letter request from the account holder and
reviews its proper presentation and content carefully.
Interviews the account holder who wants to place a standing instruction.
Advises the customer that the bank charges will be debited from the customer’s account
as a service charge as stipulated in the bank’s terms and tariff manual for each
transaction of the given standing instruction.
If the account holder agrees, sign the request and forwards the standard instruction
letter to the Senior Customer Service Officer for verification, cosigning and further
action

Writes all the relevant information of the standing instruction on the system prepared
for the purpose and keeps same under a box file with him/her to take action on the
specified date.
Marks the entry date and amount on the standing instruction card on the system to
show that action is taken
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Notify the account holder immediately; if there is no sufficient fund in his/her accounts
to cover the amount, which is given in his/her account to cover the amount, which is
given in the standing instruction.
Thank You
Demessew Kassa
Savings Account Presentation
August 2012
GENERAL POINTS
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 Saving account is an interest bearing deposit that COMMERCIAL BANK renders for small
and large depositors.
 Individuals, organizations and associations can maintain savings account as long as they
meet the Bank’s requirements
 Savings account can be opened and maintained with zero balance for one month, with
in the given period of time the account holder should credit the initial deposit amount in
his/her account. This is to mean, no initial deposit is required at the time of opening a
saving account.
 If the account is not credited in the specified period, it should be closed following the
normal account closing procedure.
 Newly opened accounts, should be segregated and put under the supervision of
Manager Customer Service for three months.
 Deposit and withdrawal of savings account shall be made upon presentation of the
passbook issued to the account holder at the time of opening.
 If withdrawal is to be made from the branch other than where the account is kept the
customer will receive the service against charge through inter branch transaction.
 Frequent transaction on savings account should not be encouraged.
The following are eligible to maintain savings account with the COMMERCIAL
BANK.
 Individuals
 Private organizations
 Religious organizations
 NGO
 Government Organization
 Idir and Associations
 Ethiopians living abroad
I.D. cards acceptable to the Bank is:

o Kebele ID card
o Farmers Association ID card
o Employment and pension ID card
o School, College and University ID card renewed for the current academic year.
o Driving License
o valid passports
o work or resident permit
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o Foreign nationals of Ethiopian origin identification card along with valid
passport.
All types of ID cards have to be renewed as long as they are renewable.
OPENING OF ACCOUNT BY LITERATES

o MAKER(Officer)
 Attend customers, interviews and identifies him/her properly according
to the account opening check list of the bank.
 Handle account opening and perform cross selling activities, guide the
customer to fill and sign the opening form and deposit voucher.
 Receive valid ID card and two passport size photographs.
 Types the necessary particulars on the passbook.
 Writes customer’s name including grandfather’s name and account number at the
back of each photograph and attaches same on the passbook and on the opening
application form.
 Maintains the customers’ account in the system.
 Passes the customers’ I.D card, the opening application form, the deposit voucher and
the passbook to the Customer Service Officer-Checker.
 Calls the customer by his/her name.
 Receives the amount to be deposited (if any) and fills out the denomination at the back
of the original voucher.
 Posts the amount to be deposited on the PC and passbook.
 Write his/her name and sign on the application form on the space provided “Name and
signature of the maker”.
 Delivers the passbook, ID card and copy of the deposit voucher to the customer by
putting the “CSO’s stamp” and initial on the face of the voucher.
 Scan customers’ signature
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 Balances his/her cash at the end of cash hour with Senior Customer Service Officer at
the cash office.
 Passes the voucher to the Branch controller along with the run up in batches of tickets.
 Ensures account opening documents are correctly filled and the opened accounts are
genuine.
 Co-signs on all the documents and puts crossing stamp on the affixed photo by covering lower
half part of it.
 Returns the opening application form, passbook, Gift pack, includes welcome note signed by the
Branch Manager and give away materials, and deposit voucher to the Customer Service Officer-
Maker.
 Check and confirm scanned signatures
BRANCH CONTROLLER
o Receives opening application form and photocopies of customers’ ID from the Customer
Service Officer-Maker
o Post checks the account opening according to the Bank’s Policy and procedure.
o Puts initial on the space provided for the correctness and accuracy of daily opened
account.
o Maintains account opening documents to his/her custody.
OPENING OF ACCOUNT BY ILLITERATE

MAKER
Performs all the duties stated under literate customers except:
 Takes right hand thumbprint of the depositor on the opening application form and
deposit voucher.
 Attests the thumbprint using the rubber stamp “signed before me”.
 If the depositor is to use his/her fingers other than right thumb, it should be specified on
the opening.
CHECKER (Officer)
o Performs all the duties stated under opening of savings account by literates
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BRANCH CONTROLLER
Performs all the duties indicated under opening of savings account by literates
BLIND CUSTOMERS
1. At the time of opening an account for blind customers the normal opening procedure for
illiterate customers shall be applied in addition to making the customer sign the special
form of undertaking.
2. When the blind customer appears at the counter either for deposit or withdrawal the
following conditions should be fulfilled:
a. The transactions shall be made in the presence of two witnesses one of whom
should be Customer Service Officer-Maker/Customer Service Officer-Checker/
Manger Customer Service and the other from customer’s side.
b. The two witnesses who observe the transactions shall sign and identified on the
withdrawal or deposit voucher to confirm that the transaction has been carried
out as instructed by the customer.
JOINT SAVINGS ACCOUNT (AND or AND/OR)

When a request for opening a joint savings account is received, the following
procedures shall be followed:
 All the procedures that are followed to open savings account shall be applied.
 The number of account holders of a joint account should not be more than three.
 Each of the joint account depositors must sign on the opening application form.
 The opening form should be marked “joint account” that is AND or AND/OR.
 In the case of “AND” account, all account holders should sign for withdrawal
 In case of “AND/OR” account, one of the account holders can withdraw and can give any
written instruction.
ACCOUNT FOR MINORS

 This is an account to be opened by the parents/guardian or by the order of the court.
 If the account is operated by both the parents, the joint account operations form should
be filled.
 Parents or guardians can open an account in their name and on behalf of minors.
 The parents or the guardian should fulfill the savings account opening formalities.
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 The parents or the guardian should produce a document (kebele I.D. card, church
certificate, municipality certificate, hospital certificate, etc.), which proves the date of
birth of the minor.
 The account should be in the name of the minor followed by the name of the signatory
(signatories) with the addition of the words (parent (s) or guardian).
 It can be opened and operated by the parents jointly, or by the parent or guardian, as
the case may be.
 If one of the parents becomes incapable to exercise or loses his/her power of
guardianship for various reasons, while the parents are operating the account jointly,
the one who is vested with sole guardianship authority shall operate the account alone
by producing a legal document, which ascertains his/her sole guardianship authority.
 The Bank would be able to make payment:-
 To the minor when he/she attains majority and produces a document to this
effect.
 To when one of his/her parents die while he/she is a minor the surviving parent .
 To his/her guardian appointed by the court when his/her parents die while
he/she is a minor.
CASH DEPOSIT TO SAVINGS ACCOUNT

When a customer comes to a branch for subsequent cash deposit to savings account the
procedures stated below has to be followed:
MAKER (Officer)
 Receives the filled in deposit voucher along with or without the passbook from
the depositor.
 Checks that the name, account number, amount in words and figure are properly
filled in the deposit voucher and signed by the depositor.
 Receives cash and writes the denomination at the back of the original deposit
voucher
 Posts the amount on the PC to the customer’s account.
 Puts “CSO’ s stamp” and initials on deposit voucher.
 Delivers the passbook and copy of the deposit voucher to the customer.
 Passes the voucher to the Branch Controller along with the run up in batches of
tickets.
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BRANCH CONTROLLER
 Collects the deposit voucher from the Customer Service Officer-Maker.

 Receives the posting journal from Senior Customer Service Officer and checks
the proper posting.
 Takes run up of the vouchers by category and balances their total against the
posting journal.
 Files the documents along with the run up after putting his/her initial and keeps under
custody.
PAYMENT INSTRUMENTS DEPOSIT TO SAVINGS ACCOUNT

 Payment instruments i.e., Cheque, Draft and C.P.O. can be accepted for deposit
to saving account.
 Payment instruments of other government and private Banks are also
received for deposit to saving accounts.
 Only Cheques and CPOs issued by Private Banks’ City Branches are accepted for
deposit.
 When payment instruments drawn on the same branch are accepted for
deposit, the following procedures shall be adhered to:
 Refer the duties and responsibilities of both Maker and Checker to Current Account
procedure manual.
 Payment instruments drawn on other COMMERCIAL BANK Branches are
accepted for deposit to Saving Account follows the following steps:
 Refer the duties and responsibilities of both Maker and Checker to Current Account
procedure man
WITHDRAWAL BY LITERATE CUSTOMERS

MAKER
 Advises the customer to fill out the withdrawal voucher.
 Receives the passbook, withdrawal voucher and I.D. card (if any) from the customer and
checks that the withdrawal voucher is properly filled in, that is, date, name of account
holder, amount in words and figure, account number and signature of the account
holder.
 Ascertains that the photo affixed on the passbook resembles the customer.
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 Counter checks the similarity of name and account number written on the voucher
against the passbook.
 The date, amount in words and figure are correctly filled out in the voucher.
 Verifies the signature of the customer on the voucher by comparing it with that of the
scanned signature.
 Posts the amount to be withdrawn on the PC.
 Initials on the voucher and passbook and passes the documents to the Customer Service
Officer-Checker or Manager Customer Service for approval/referral/code of payment
depending on the approval limit (amount).
 Pays the specified amount on the withdrawal voucher to the account holder by
recording the denomination on the voucher depending on the customer’s preference.
 Puts the “CSO’s stamp” on the face of the withdrawal voucher and passbook, initials on
it and delivers the passbook and/or customer’s I.D. card (if any) to the customer.
 Passes the voucher in batch along with the run up to the Branch Controller.
 Balances his/her cash at the end of cash hour with the Senior Customer Service Officer.
CHECKER
 When withdrawals are referred to him/her, make all the necessary investigation, and
pass the passbook, the withdrawal voucher and customer’s I.D. card (if any) to the
Customer Service Officer-Maker.
BRANCH CONTROLLER
 Receives the withdrawal voucher along with the daily posting journal from the Senior
 Ascertains the proper completion of the withdrawal voucher, i.e., date, name of the
account holder, account number and amount in words and figure.
 Checks the correctness of the signature of the account holder on the withdrawal
voucher.
 Ensures that entries are passed to the appropriate account and “CSO’s stamp” and initial
are put on the withdrawal voucher.
 Sorts out and takes run up of the total withdrawal vouchers against the posting journal.
o Files the withdrawal voucher, posting journal and run-up under custody
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WITHDRAWAL BY ILLITERATE DEPOSITORS
MAKER (Officer)
Follows all the steps mentioned under withdrawal by literate customers except:
 Fills out the withdrawal voucher on behalf of the customer with all the particulars
needed.
 Attest the thumb print by rubber stamp “signed before me” and initials on it.
CHECKER (Officer)
Follows all the procedures stated under withdrawal by literate customers.
BRANCH CONTROLLER
Performs all the duties indicated under literate cu
WITHDRAWAL AT OTHER BRANCHES

BLOCKING OUTWARD
 Payment from saving account can be made by blocking from outlying branches up to
Birr 10,000.
 Care should be taken in case of frequent blocking on same account until the claim is
responded.
 Blocking savings account within the same town is prohibited.
 Withdrawal will be made through inter branch transaction as per the procedure for it.
 Payments from savings account above Birr 3,000. - shall be paid by blocking against
coded or tested message.
 Any amount up to Birr 3,000. - shall be paid without using coded or tested message.
 At the time of blocking savings account, the procedure should be followed by the
Customer Service Officer-Maker/Customer Service Officer-Checker/ Manager Customer
Service will follow as it is indicated in the current account procedure manual except the
following :
 The customer should present his/her passbook and ID card.
 The customer should fill two withdrawal vouchers.
 Attach one of the withdrawal vouchers to the claim.
 Enters the amount to be withdrawn in the passbook.
Demessew Kassa
BLOCKING INWARD
Steps to be taken at the responding branch:

When telephone call received to block the amount to be paid, the Customer Service
Officer-Maker/Customer Service Officer-Checker/Manger Customer Service shall follow
all the steps presented in current account procedure manual
WITHDRAWAL REQUESTED BY ACCOUNT HOLDERS WHO ARE INCAPABLE OF

APPEARING IN PERSON.
 Savings account holders who are incapable of appearing in person on the counter may
request for withdrawal.
 In such case, Customer Service Officer-Maker with the Manger customer service/
Customer Service Officer-Checker may arrange the withdrawal provided that the
withdrawal voucher is signed in the presence of Bank Staff, Branch Controller and two
other witnesses.
 The witnesses should attest the signature by stating “signed before us” and putting their
signature in the voucher.
WITHDRAWAL BY THIRD PARTY

 Third parties should not be allowed to withdraw from an account of another
savings account holder unless an authentic power of attorney is obtained.
 Upon presentation of court order to the branch payment may also be effected to
any third party.
 The Branch Manager after scrutinizing the power of attorney, assign one of the
Makers for processing.
 Maker process as per the instruction and forward to the Checker.
 Checker ensures the correctness and returns to the Maker.
 Maker effects the payment and hands over all the documents to the Branch Controller
Demessew Kassa
INACTIVE SAVINGS ACCOUNT
Inactive savings account is an account which has been dormant for one year, except
interest credits
MAKER (Officer)
 Reviews the active savings account every six months (at the beginning of June and December) to
determine which accounts are transferable to inactive accounts.
 Prepares lists of those inactive accounts with their respective opening application form.
 Forwards the above document to the Manger Customer Service/Branch Manger for approval.
MANAGER CUSTOMER SERVICE
 Checks the list and the tickets prepared against such accounts.
 Approves the transaction after thorough examination by ascertaining that the opening
form is taken out.
 Retains the inactive account’s opening forms under his/her custody.
 Sends the tickets and a copy of the list to the Branch Controller who checks the accuracy
of the list against the transfer voucher.
 Any transaction on inactive accounts must be approved by the Manger Customer
Service.
 Inactive accounts show three debits should be transferred to active accounts.
 Inactive savings account should be balanced at least once in a month and any variation
must be closely investigated.
INTEREST PAYMENT ON SAVINGS ACCOUNT
 Interest will be calculated on the minimum balance standing to the credit of the
depositor between the first days to the last day of each Gregorian calendar month.
 The period for calculating interest is from first December up to and including 31st May
of the succeeding year for the first half year; and from first June up to and including
30th November of the same year for the second half year.
 Interest must be credited on 31st May and 30th November.
Hence, the following points should be noted:
 Interest calculation is worked out by the system itself as programmed.
 Senior Customer Service Officer should make sure that the daily closing is in balance.
Demessew Kassa
 Prints out the balances together with the name of account holder and account number
at the end of May and November.
 Retain back up copy.
 The 5% interest tax collected is payable to the Inland Revenue Authority by Head Office
Accounts at the end of every month.
 branches are required to transfer the balance under “Accounts Payable 5% interest Tax
on Deposit” on 15th and end of every month to Head Office Accounts.
 Some religion followers may refuse to accept the interest earned on their saving
account. In such cases, credit the interest earned to other ‘income sundries’, upon
receipt of written authority from the customer and reclassify the account to Special
Demand Deposit.
SALARY PAYMENTS TO SAVINGS ACCOUTS
 For those organizations whose salaries are paid through the Bank, the
operational procedures listed here under are to be adopted.
 The organizations present request to Branch Manager and an approval should be
obtained at branch level.
 The branch obtains a signed and stamped list that contains names and net salary
of the employees of the organizations together with the cheques or letter of
authority, which contains the total amount of salary payment.
 Upon receipt of the list and the cheques or letter of authority, takes run up of
the list and ascertains its balance with the cheques amount or amount specified
in the authority letter.
 As per the list, registers the names of employees on the PC and assign a
consecutive saving account number for each employee
 Debit the organization’s account and credit the individual’s savings account.
 Fulfill all the saving account opening formalities as and when the employees
appear at the bank.
 Hands over the passbook to the employees who completed the saving account
opening formalities.
 Charges the organizations account with Birr 5. – Per employee as a service
charge for salary payment.
 Every month when salary payment instruction is received from the organization,
procedures stated above, that is, c, e and h should be followed.
Demessew Kassa
STAFF SALARY PAYMENTS TO SAVINGS ACCOUNT
 Staff savings account should not be treated like any other ordinary savings account and
must be placed under the custody of the Senior Customer Service Officer.
 Any staff member, unless assigned, should not be authorized to handle any transaction
related to his/her own account.
LOSS OF PASSBOOK
 Upon customer’s notification and application of a loss of passbook, the bank has to accomplish
the following procedures in order to safeguard the depositor and the bank’s interest.
 The Customer Service Officer-Maker interviews the customer.
 S/he asks the customer where and when the customer has lost the booklet and requests same
to fill the standard declaration form designed for this purpose.
 Two witnesses, who may be staff members should sign this form.
 Thereafter, the signature appearing on the declaration form must be verified.

 A new savings account should be opened adhering to all formalities regarding savings account
opening procedures.
 The old account must be closed by transferring the balance with interest up to date to the new
account opened.
 The customer is provided with a new booklet upon a payment of a charge of Birr 25.00.
 All the documents pertaining to the old account should be taken out in line with the procedure
of closing of saving account.
 The customer should be advised to hand over to the branch the lost passbook in case of
recovery.
CLOSING OF SAVINGS ACCOUNT

A saving account may be closed due to the following conditions.
o Request by the customer.
o When a customer reports loss of passbook with evidential documents.
o When there is a court order.
 In the case of the first three conditions the Customer Service Officer-Maker or the
Manager Customer Service should interview the customer.
 If the customer is determined to close his/her account due to dissatisfaction or
misunderstanding encountered with the Bank, remedial action or corrective measures
should be immediately taken to this effect.
Demessew Kassa
o The following procedures must be adhered to close savings
account:
 Compares the balance of the PC and the passbook and update if there is any difference.
 Get the accrued interest balance from the computer and prepare the necessary tickets
for the payment of Accrued interest to the customer.
 Prepares the necessary tickets for collection of 5% interest tax from the customer’s
account.
 Requests the customer to fill withdrawal voucher for payment of net balance.
 After payment is effected the Customer Service Officer-Maker should retain the
passbook and hands over same to the Manager Customer Service or his/her designate
for eventual cancellation.
 The opening application and passbook (if any) must be collected from the customer.
 Passes the documents marked “closed” to the Branch Controller or to the Manager
Customer Service or his/her designate in the absence of Branch Controller for checking
and filing.
a) A debit ticket should be prepared for the net balance and payment is effected in cash.
OTHERS
STANDING PAYMENT ORDERS
 Payment instruction from any savings account holder should not be encouraged.
 Based on exceptional circumstances, the Branch Manager may accept standing instruction on
savings account
o A service charge of birr 5.00 should be collected per transaction while effecting such
instruction.
CLOSURE AND TRANSFER OF A SAVING ACCOUNT BALANCE FROM BRANCH
 Requests the customer to fill the standard application form

 Receives the related passbook from the customer and collects postage charges
as per the prevailing terms and tariff and service charge of Birr 5.00.
 Issues a printed receipt for collection of the passbook.
 Forwards the passbook along with the application to the branch where the
account is maintained.
 Branch maintaining the account will verify the signature appearing on the
application form.
 Collects interest if entitled and charges 5% interest tax on the amount.
Demessew Kassa
 Close and transfer the balance to the requesting branch per customer’s
instruction that is MT, TT, and Credit with Advice Ticket through Credit Summary .
 Complete all the procedures to be followed for saving account closing .
BLOCKED SAVINGS ACCOUNT

Savings account could be blocked and kept as collateral for loans and by the order of the
court.
 Upon receiving a letter of instruction in duplicate from the customer, segregate
the amount and set aside the fund as security under “blocked account”.
 If the blocking is made as a deposit of collateral for loans, indicate the loan
account number, the amount and due date of the loan it secures
 Keep all “blocked savings account under the supervision of the Manager
Customer Service or his/her designate.
 Upon settlement, debit the blocked savings account with the outstanding
balance and credit the old account of the customer.
 Interest on such blocked savings account is not computed.
 Passes the “blocked savings account” mandate file to the Branch Controller after
closing.
 Inform the customer that his/her account is blocked by indicating the reason for
blocking.
UNISSUED PASSBOOK STOCK ON HAND

o Upon receiving stock:
 All savings passbook received from CPC per requisition should be registered numerically
on the savings passbook stock register and should be kept along with the register book
under the custody of the Manager Customer Service.
 At time of issuance of passbook, it should be recorded accordingly on the register book
and be delivered to the Customer Service Officer-Maker for daily use against his/her
signature.
 Before any subsequent supplies are issued, the Customer Service Officer-Maker must
account for all passbooks he/she has received.
 The Manager Customer Service should check the passbook surrendered to the Customer
Service Officer-Maker daily.
Demessew Kassa
REQUEST FOR A CHANGE OF SIGNATURE
 Savings account holders may request for a change of signature for various
reasons such as:
 When there is a difference in their signature with that of the previous one signed
at the time of opening and feel that they cannot make a similar signature any
more.
 When illiterate account holder requests for a change from thumb print to a
written signature after literacy.
 Frequent change of signature is not encouraged by the bank; the request will be
entertained if genuine reasons exit.
 Same procedures shall be followed as stated under current account.
FIXED TIME DEPOSIT
 Fixed time deposit is a type of deposit which is received for a certain period of time
without movement and attracts higher interest rate.
 The minimum period of accepting fixed time deposit shall be six months.
 The rates of interest vary according to the duration of the deposit received i.e. the
longer the deposit remains in the bank the higher is the interest rate earned.
 If the customer withdraws the deposit before the minimum period i.e. six months,
he/she shall forfeit the contract interest rate.
 Interest will be calculated ONLY for the duration of the certificate, i.e., no interest will
accrue after expiry of the certificate unless replaced by a new one.
 As per the prevailing interest rate the bank the Branch Manager will accept Fixed Time
Deposit.
ISSUANCE OF FIXED TIME DEPOSIT CERTIFICATES
 Whenever a customer wishes to open a Fixed Time Deposit account, s/he should be
interviewed by the Manager Customer Service and should complete the standard
format designed for the purpose.
 The customer has to make deposit in the form of cash, cheque or authorize to debit
his/her account.
Demessew Kassa
 If the deposit is made in cash, the necessary credit ticket with advice is prepared and
stamped with “CSO’s stamp”.
 If the deposit is to be made by the debit of the applicant’s account, the debit and credit
ticket with advices is originated
 If the deposit is made by cheque, the procedure stated under payment instruments
deposit to Savings account shall be followed.
 The necessary entry has to be passed by the customer service officer-maker upon the
collection of cash from the customer or while affecting his/her account
 Upon the fulfillment of the above procedures, a certificate of fixed time deposit is issued
in the name of the depositor.
 The Manager Customer Service hands over the certificate and credit advice duly signed
by two authorized bank signatories to the depositor.
 The Manager Customer Service must ensure that the customer signs on the registered
copy confirming receipt of the certificate of time deposit.
CUSTODY OF CERTIFICATE, DEPOSIT REGISTER COPY AND

APPLICATION FORM
 Application form, register copy and debit or credit advice depending on the
mode of payment will be filed and kept under the custody of the Manager
Customer Service.
 A separate mandate file must be established for every depositor and all the
necessary documents must be kept safe.
INTEREST COMPUTATION ON THE FIXED DEPOSIT

 Interest should be computed monthly effective the date of deposit.
 Interest calculation will be made on the Computer by the system itself.
 Accrual of interest on fixed time deposit should be credited to Accrued Interest
on fixed time deposit account every month by the debit of Interest Expense on
fixed time deposit account.
 On the date of maturity, the interest due must be credited to the account or paid
to the depositor in cash depending on his/her instruction by the debit of Accrued
Interest on fixed Time Deposit.
RENEWAL OF FIXED TIME DEPOSIT

 The fixed Time Deposit will be renewed as per customer’s instruction by presenting the
original matured certificate.
Demessew Kassa
 Confirmation of such renewals should be sent to the customer.
 Standing instruction to renew the certificate under the same conditions should not be
entertained because the old certificate needs to be collected before a new one is issued.
 If the depositor wishes a change in the duration of the fixed time deposit, he/she may
contact the Bank and be issued new certificate upon his/her written instruction.
o Renewal can be performed under one of the following conditions:
o When the depositor appear in person at the counter.
o Through the customer’s legal agent.
o When the customer requests to dispatch the certificate through mail by covering
the related expenses.
o Unless the above conditions are fulfilled the account will not be renewed and no
interest shall be calculated
THANK YOU!!
We are at your service
Demessew Kassa
Money Transfer
 Transfer of money from one branch to other own branch or from own bank branch to
other bank branch as per the order of the customer through means of communication
and convertible payment instrument. (Through telephone, SWIFT, DD, travelers check
etc.)
Telephonic Local Money Transfer (TT)
Collection of cash for Money Transfer

 Receives the money transfer application form (See annex) from the customer and
inserts the details on the
 Verifies the signature of the account holder/authorized signatories, if the transfer is
made from account.
 If the remitter is organization or incorporated firm, the application should be presented
only by the person who is delegated for the purpose.
 Produces the following computer generated tickets, signs on all tickets, puts cash stamp
and collects the amount to be transferred including, the telephone charge and
commission.
 First copy – Cash/debit ticket
 Third copy – Customer’s advice
 If the amount to be debited is within his/her limit, debit the customer’s account and
puts initial on the debit ticket otherwise dual authorization shall be requested from the
respective CSO-checker/Manger Customer Service for the amount.
 Forward the application form to the CSO-checker for the transfer of the message to the
paying branch.
 Takes run up, balance his/her cash at the end of cash hour against the PC balance and
delivers the ticket to the branch controller and cash to the senior customer service
officer.

Demessew Kassa
 Checks the correctness of the presented application and responds the referral to deduct
customer’s account.
 Encodes the message using the system, print cable order (copy 2) and signs on it.
 Customer’s account and puts initial on the debit ticket otherwise dual authorization
shall be requested from the respective CSO-checker/Manger Customer Service for the
amount.
 Transfers the message to the paying branch.
 Puts “Message transferred” stamp on the face of the cable order, or diagonally cross in
pen on the ticket, writes date of transfer and name of the staff who received the
message at the paying branch.

 Prints batch report and forward to the Customer Service Officer –Maker at the back for
posting.
 Follows up timely settlement of suspense accounts. Transfers the message to the paying
branch.
 Puts “Message transferred” stamp on the face of the cable order, or diagonally cross in
pen on the ticket, writes date of transfer and name of the staff who received the
message at the paying branch.
Demand Draft (DD) and Certified Payment Order (CPO)

o Customer Service Officer-Maker
 Receives money transfer application form or letter from the customer, checks the
particulars and insert the details in the system.
 Receives cash/debit customer’s account including the commission and forwards the
application letter to the checker.
 Receives the CPO/Draft from the checker, co-signs on the prepared CPO/Draft, makes
the remitter sign at the back of the cash ticket and gives the instrument to the
customer.
officer.
Demessew Kassa
 Receives the blank CPO/Draft from the Manager Customer Service.
 Ensures the correctness of the particulars on the CPO/Draft as per the customer’s
application.
 Prints the Draft with tested message/CPO after confirming cash is received.
 Signs on the CPO/Draft and forwards same to the Customer Service Officer-Maker.
 Checks that daily used CPO and Draft are consecutive with the remaining unused
demand draft/CPO form.
Foreign Money Transfer

Demand Draft and General Transfers
o Customer Service Officer-Maker (at the front)
 Receives foreign exchange application letter or duly completed remittance format along
with evidentiary documents.
 If the permit is approved by NBE, receives the permit from the Manager Customer
Service.
 Verifies signature (if the balance is to be debited from account), make preliminary
checking and forward to the checker for further scrutiny.
 Receives back the application/permit including the name of the Correspondent Bank
and insert the details in the system.
 Receives local currency equivalent in cash /debit customer’s account, on the prepared
Draft and forwards it to the checker.
 Receives the Draft from the checker, co-signs, makes the remitter sign at the back of the
cash ticket and gives it to the customer.
 If the transfer is made via SWIFT, insert the data, sign on the foreign TT outgoing ticket,
fills the MT 103 format on the system, and forwards to the Customer Service Officer-
checker.
officer.
o Customer Service Officer – Checker

 Receives for-ex application from the Maker and examines the document against the
check list.
 Assigns the correspondent bank on which the draft should be drawn and forward to the
maker.
Demessew Kassa
 Checks the application latter against the prepared document, conversion of the counter
value of the requested foreign currency including related charges, sign and forwards to
the maker.
 Checks the availability of sufficient fund in the correspondent bank account with the
Finance process as the case may be.
 For transfers to be made via SWIFT, checks the filled MT 103 format and outgoing TT
ticket, sign and sends to Head office Account(Finance).
 Forwards the permit along with the exchange control copy to the Senior Customer
Officer.
 Sort & attach the appropriate documents and keeps in file

 Sends the permit along with the exchange control copy to Head office
Account(Finance) at the end of the day
Purchase of foreign currency cash notes

 Receives and identifies the type of foreign currency cash notes and check its
genuineness.
 Makes the customer fill the necessary details on the cash exchange format, calculate
the exchange rate, print receipt , makes the customer sign on and forward for checking.
 Sign on the cash exchange format, computer generated receipt and pays to the
customer if it is within the authorization limit or send referral and the ticket to the
checker if it is above the authorization limit for checking and co signature.
 Surrenders the foreign currency notes to the senior customer service officer after
balancing the day’s cash transaction and the tickets to Branch Controller.

 Accepts the tickets/referral from the maker, check, cosign and return the
tickets/respond the referral.

Demessew Kassa
o Prepares monthly returns of cash holdings and send to the Head office
Account(Finance), finance and the branch controller; the return should have the
following particulars: type of currency, total FCY and birr equivalent.
o Branch Controller
 Checks and balance the day’s cash transaction against the posting journal.
 Keeps cash pads fully utilized at the safe custody.
 Checks and follows up Local and Foreign Currency cash holding positions of the branch.
 Checks on the surprise basis the file copy of the cash exchange format.
Issuance of Travelers Checks, Cash Notes,

 Issuance of foreign currency in the form of cash or Traveler Cheques shall be performed
in line with the relevant directives of NBE

 Receives travel documents, (Passport and Air ticket) verify application letter and make
preliminary checking and forwards for further scrutiny to the checker.
 Collects local currency equivalent in cash or debit customers account
 Receives the Travel Cheques from the Senior Customer Service officer.
 Insert the data, collect local currency cash equivalent/debit customer account and
generate the tickets.
 Makes the customer fill and sign on the purchase agreement of the Traveler Cheques.
 Delivers Travelers Cheque to the customer against signature on the face of each Cheque
in his/her presence
 Pays the balance in foreign currency cash notes to the customer according to the
prevailing NBE directive.
 Surrenders the foreign and local currency notes to the senior customer service officer
after balancing the day’s cash transaction and the tickets to Branch Controller.

 Receives and examines the travel document and application form against the check list,
ensure the completeness
 Assigns permits reference number on the application letter
o Branch Controller
Demessew Kassa
o Checks and balance the day’s cash transaction against the posting journal.
Payment against incoming money transfer

o Telephonic Money Transfer
o Customer Service Officer /BackOffice maker/

 Receives the incoming transfer message and inserts the details on the computer
 Puts “Message received and posted” stamp on the face of the telephone ticket, signs on
the ticket, writes date of transfer and name of the staff who has transferred the
message
 Forwards the telephone ticket to the respective customer Service Officer / Checker /
 After coded by the checker, Co-signs on the U.E and payable tickets generated in batch
and also on the credit with advice tickets.
 Credit the customer’s account, puts posted stamp on the ticket and initials on it,
provided that the remittance is received to credit a given account.
o Customer Service Officer /Checker/

 Checks the incoming message is properly inserted in the computer
 Decode the message and co-signs on the incoming message format
 If the payment is in cash, informs the payee immediately to come to the branch office
and collect his/ her money otherwise produces credit with advice ticket to credit the
amount to the respective customer’s account.
 Generates a report containing the following entries in every twenty messages received
and signs on the ticket
o Debit. U.E – TT’s received
o Credit. A.P – TT’s payable (Single credit along with
 the list of beneficiaries to be paid
o OR (For Foreign Incoming Transfer)
o Debit: U.E – TT’s received-Foreign
 Credit: TT’s payable
Payment in cash
Demessew Kassa
o Customer Service Officer /front office maker /
 Receives ID card and asks the beneficiary about his/her remitter, search for whether the
money is remitted and if the massage is received by the branch, produces cash payment
ticket accordingly
 Identifies the customer’s address in the system, ID number, issuing organization or
office name, issuing date and print computer generated ticket and the customer signs
on it
 If the amount to be paid is within his/her limit, effect payment to the beneficiary
otherwise the message shall be directed to the appropriate checker based on the
discretionary limit assigned for.
o Customer Service Officer (Checker)/Manager-Customer Service
 Ensures the correctness of the message and cosigns on the cash payment ticket as
appropriate
Certified Payment Order (CPO)

 CPO is a type of negotiable instrument prepared as per the request of the customer and
is payable up on presentation. It is endorsable and valid for six months.
o When CPO is presented for cash payment or requested for refund by the
purchaser at Issuing branch, the following procedures shall be followed
o Customer service officer /Maker

 Identifies the payee properly at the back of the CPO and attaches photocopy at the
expense of the branch and verifies signatures on the CPO
 Forwards the CPO and customer’s ID card to the respective CSO-checker (at the back)
for signature verification and decoding.
 Obtains confirmation that the tracer is offset against the presented CPO.
 Receives back the CPO, effects payment if the amount to be paid is within his/her
authorization limit and puts “Customer Service Officer Stamp” and initials on the front
side of the CPO.
 For amounts above his/her authorization limit, passes the CPO to the respective Checker
or Manager – Customer Service for co-signing.
o Customer Service Officer -Checker/Manager– Customer

Service
Demessew Kassa
o Checks the correctness of details filled in the CPO and gives co-authorization for
the payment based on the limit set for.
 Obtains confirmation that the tracer is offset against the presented CPO.
 Receives back the CPO, effects payment if the amount to be paid is within his/her
authorization limit and puts “Customer Service Officer Stamp” and initials on the front
side of the CPO.
 For amounts above his/her authorization limit, passes the CPO to the respective Checker
or Manager – Customer Service for co-signing.

o Customer Service Officer -Checker/Manager– Customer Service
o Checks the correctness of details filled in the CPO and gives co-authorization for
the payment based on the limit set for.
o When CPO is presented for cash payment other than the issue branch, the
following procedures shall be followed
o Customer service officer /Maker

 Receives the CPO and ID card from the customer and checks that CPO is properly
presented i.e., date of the CPO, name of the originating branch, full name of the payee,
the amount in words and figures are all in order and is signed by two authorized
signatories.
 Identifies the payee properly at the back of the CPO and attaches photocopy of the ID
card.
 Forwards the CPO to CSO-checker (at the back) for signature verification and decoding.
 Effect payment if the amount to be paid is within his/her authorization limit, otherwise
co-authorization to the respective Checker or Manager – Customer Service, puts
“Customer Service Officer Stamp” and initials on the front side of the CPO.
 Puts cash stamp on the front side of the CPO and initials with ballpoint pen.
 Forward the CPO to the CSO- maker (back office) for claim ticket preparation
 Customer Service Officer - Checker/Manager- Customer Service

 Checks that the CPO is presented in order i.e., the date, name of the issuing branch, full
name of the payee and the amount in words and figure are correctly typed and gives co-
authorization for the payment based on the limit set for.
 Checks a copy of the customer’s ID card is attached at the back of the CPO
o Customer Service Officer-checker (at the back)
 Make sure that the beneficiary endorses at the back of the CPO, verifies signatures on
the face of the draft, decodes and forwards to the CSO-maker for payment.
Demessew Kassa
 Co-signs on the claim ticket.
o Customer Service Officer-maker (at the back)

o Prepares the claim ticket, sign and sends to the issuing branch.
Payment of lost certified payment order
 Whenever certified payment order are reported lost in writing by customer of the
branch to which the customer reports, be it paying or any other branches, shall
immediately inform the Manager- Customers’ Account & operations in writing.
 The Manager will circularize the loss of the instrument to all branches through Head
office Account (Finance) to take the necessary precaution in case it is presented at their
counter for payment .By the time branches receive such circular, they are expected to
check their book of account whether they have paid or not earlier and take note that
they shouldn’t have to pay in the future. If payment has already been effected against
the lost instrument, they should report immediately to the Manager - Customer Account
and Operation and try to take remedial action to recover the fund.
o Manager–Customer Service (at issuing branch or paying branch)

 Upon receipt of the circularized memo from the Manager- Customer Account and
Operation , inform the rightful beneficiary ( beneficiary or remitter or legal agent or legal
heirs ) to present refund request of the proceeds of the lost instrument in writing either
at the issuing or paying branch as appropriate
 Ensure that the one who request for refund of the proceeds of the lost instrument shall
present an undertaking letter to safeguard the interest of the bank in case of any future
eventualities , which is signed by the request presenter and sealed with an official stamp
in case of an organization .
 Ensure the whereabouts of the cover of the lost and unexpired instrument prior to
processing a refund approval.
 If the beneficiary and remitter of the lost instrument are different person or
organization , the one who request for refund of the proceed of the lost instrument shall
present the other party consent in writing that he /she has no any objection if the one
who request for refund is paid with the proceeds of the lost instrument
o Inform the applicant to offer adequate collateral provided that the lost
instrument is not expired .The collateral could be cash to be kept in blocked
account to the extent of the amount of the lost instrument until the expiry date
Demessew Kassa
of the lost instrument or a fixed asset whose value is twice the amount of the
lost instrument.
Note: The appropriate contract form shall be made like it is done for loans and advances
and signed between the branch representative and the owner of the fixed asset. It
should also be registered by the appropriate registering body to be kept intact until the
expiry date of the lost instrument.
 Encloses any other additional supporting document as deemed necessary.
 Keeps photocopy of the entire document at the branch and forwards the letter of
refund request and the original documents to the appropriate approving organs, if it is
beyond the branches approving limit.
 If the lost instrument is an expired one, a request is received by the branch for refund of
same ,all the procedures stated here above (a-g) except shall be followed
o If a refund request is received by the branch for refund of expired but not lost
instruments procedures stated here above c, d, f, and g shall be followed.
However, the original expired instrument shall be kept within the branch and
photocopy of same shall be sent together with other documents to the
respective approving
Amendment
 If the error is made by the Remitter, the receiving branch shall take the following
procedures:
o Customer Service Officer -Maker
 Receives application letter from the remitter to amend the message and forwards to the
customer service officer – checker for further checking.
 Upon receiving the verified application letter from the checker, prepares credit with
advice ticket having the following accounting entry and signs on the ticket:
 Contra- Cash
 Cr. – Other Income-telephone, telex and telegram
 Collects the required telephone charge, puts cash stamp on the ticket and submit
the advice to the customer.
Demessew Kassa
 Checks the application letter has the required information to request amendment on
the transferred message.
 Gets the already filed customer’s application letter/form from the Branch Controller and
verifies the applicant’s signature against the previously maintained signature on the
money transfer application form.
 Writes particulars for the amendment requested, encode the message and transfer to
the paying branch through telephone
 Puts two diagonal parallel lines on the face of the amendment form/letter, writes date
of transfer and name of the staff who received the message at the paying branch.
Retransfer
 The branch which receives the retransfer request shall take the following procedure: /
formerly the receiving branch/
o Customer Service Officer-Maker

 Receives the customer’s application letter along with the former remittance advice and
forwards to the customer service officer – checker for further checking/verification/
 Upon receiving the verified application letter from the checker, prepares credit with
advice tickets having the following accounting entry and signs on the ticket:
 Contra- Cash
 Cr. – Other Income-telephone, telex and telephone
 Cr. – Other income – Service charge
 Collects the required charge, puts cash stamp on the ticket and submit the advices to
the customer.
o Checks the application letter has the required information to request
amendment on the transferred message.
 Writes particulars for the retransfer requested, encode the message and request the
paying branch through telephone.
 Puts two diagonal parallel lines on the face of the retransfer form/letter, writes date of
transfer and name of the staff who received the message at the paying branch.
 Gets the already filed customer’s application letter/form from the Branch Controller and
verifies the applicant’s signature against the previously maintained signature on the
money transfer application form.
The branch which responds the retransfer request shall take the following procedure:
o Customer Service Officer-Back Office Maker

Demessew Kassa
 Receives the incoming transfer message, insert the details on the computer and
forwards to the customer service officer /checkers/ through the system.
 Puts two diagonal parallel lines on the face of the cable order, writes date of receipt and
name of the staff that transferred the message at the remitting branch.
 Forwards the incoming telephone tickets to the branch controller.
o Customer Service Officer- Checker
 Decodes the message and passes the following accounting entry:
 Dr. A/P TT’s Payable
 Cr. Head office
 Produces the following computer generated tickets and signs on each:
 First copy – Debit ticket/Payable ticket
 Second copy – Cable order
 Cosigns on the ticket after it is signed by the maker
 Transfer the message through telephone, puts two diagonal parallel lines on the face of
cable order, writes date of transfer and name of the staff who received the message at
the paying branch
Whenever the branch received the retransferred telegraphic message, the

following procedures shall be followed:
o Customer service officer /Back office maker/

 Receives the incoming transfer message, insert the details on the computer and
forwards to the customer service officer /checkers/ through the system
 Puts two diagonal parallel lines on the face of the cable order, writes date of receipt
and name of the staff who transferred the message at the remitting branch
 Forwards the incoming telephone ticket to the branch controller
 Credits beneficiary’s account or payable account
o Customer Service Officer- Checker
 Decode the message and passes the following accounting entry:
 Dr. Head Office
 Cr. A/P TT’s retransferred
 Informs the payee through telephone immediately to come to the branch office and
collect his/ her money.
If the beneficiary doesn’t collect his/her money within 45 days of the transfer, the
message shall be returned to the originating branch through having the following
procedure:
Demessew Kassa
o Customer Service Officer/Back office Maker
 Generates list of matured transactions from the computer system
 Prepares credit with advice ticket/s having the following accounting entry:
 Debit - A/P TT’s or MT’s payable
 Credit- Head office
 Signs on the tickets and attaches the A/P-TT’s payable ticket with the credit ticket
 Prepares credit summary, signs on it and transfers to the respective head office or area office
o Customer Service Officer/Back office checker

 Checks whether the maturity date of the message is elapsed
 Co-signs on the credit ticket and the summary
 Whenever the originating branch receives the retransferred message through credit
summary, the following procedures shall be followed:
 Customer Service Officer/Back office Maker
 Receives the credit with advice ticket delivered through the credit summary (See how
account settlement is done)
 Passes the following accounting entry:
 Dr. Head office
 Cr. A/P – TT’s or MT’s retransferred
o While receiving foreign incoming money transfer messages the following
procedure shall be followed.
Manager- Foreign Outgoing and Incoming Transfer (Head office Account Finance)
 Log on the SWIFT workstation to make it ready for receiving incoming messages.
 Checks authenticity of incoming Swift messages (MT103) and /or facsimile messages and
puts signature and stamp on the printed original hard copy.
 Ensures that the facsimile messages are received with a test key
 Ensures deduction of the appropriate charges for incoming and outgoing messages of
private banks.
 Communicates the sending bank in case of discrepancy
 Register on the dispatch book/on the system
o The Customer Account Operations Officer- Maker

 Receives the swift/fax messages from the Manager- Foreign Outgoing and Incoming
Transfer and registers the details of the message on PITS.
Demessew Kassa
 Sorts and arranges the message by type and branch.
 Prepare and sign single entry ticket to reflect the transaction and to ascertain whether
the balance agrees with the total of PITS record at the end of each business day.
 Transmit the message to the off-line branches through available means or credits
customers account from the center.
 Prepares debit ticket for correspondent account and credit ticket to the branch account
and pass the necessary entries.
 Respond to claims of branches and special outlet verifying against the copy of the swift
message retained at his/her possession and against the PITS record.
 Pass single entry ticket to settle the outstanding claim
Customer Account Operations Officer- Checker
 Checks, signs and delivers original copy to city branches and special outlet through
available means.
 For off-line branches, Codes and transmits tested message through available means.
 Checks and counter signs for the correctness of exchange rate application against the
prevailing rate table.
 Checks and confirm that all payment instruction messages are properly recorded on the
PITS.
o Retain copy of the SWIFT message and the telegram message for file/directly
credit if online/.
o Duties and responsibilities of the Head office Account(Finance) Controller

 Checks the correctness and completeness of the documents
 maintain documents in file
o Outgoing Money Transfer through SWIFT
o Customer account and operation Officer (Maker)
 Receives the source document from the branches and special outlet and then enters
the information on the SWIFT standard message format in the system (i.e., create the
message on the message).
 Forwards the source document and the standard swift message to the checker for
verification and authorization.
o Customer account and operation office (checker)
Demessew Kassa
 Receives the source document from the maker along with the standard SWIFT
message and then verify whether the data or information entered properly from
source document on the system.
THANK YOU
Demessew Kassa

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[Type text] Page 1

1.1 Over all set up of Customer Account and Transaction process

1.2 Work flow organization

1.2.1 Product and Service under CATS

1.2.2 Back office

2. Type of product and Services

2.1 What is Demand Deposit(Current Account?)

2.2. What is Fixed Time Deposit Account?

2.2.1 ISSUANCE OF FIXED TIME DEPOSIT CERTIFICATES

2.2.3 RENEWAL OF FIXED TIME DEPOSIT

2.4 What is foreign currency account?

2.4.1 Type of foreign currency account

2.5 What is Joint accounts (AND or AND/OR)? Its operation.

3. Document Requirement to open account

3.1.2 Private Limited Company

3.1.3 Organizations legally incorporated in the form Of Partnership

3.1.4 Share Company

3.1.5 Cooperative Societies

3.1.6 Associations and club

3.1.7 Non-resident companies

3.1.8 Non Resident Ethiopian and Foreign Nationals of Ethiopian origin

3.1.10 Recipients of inward remittances

4.1 The precaution in account closing by customer

5. Cash Collection for deposit at branch

6. Collection of Negotiable Instruments for Deposit

6.1 Check clearance

6.1.1 On bank check clearance - Cheque drawn on other city branches

6.2 Normal check clearance

6.3 Special check clearance

6.4 Foreign Cheques

6.4.1 Outward Bills Purchased (OBP)

6.4.2 Outward Bills for Collection (OBC)

6.4.3 Accepting claim of negotiable instruments

7.1 Payment from Current Account

7.2 FCY Cheque (NRT, NRNT)

8. Other Issues in Opening, Collection and Payment

8.1 Inactive Account

8.2 Handling and issuance of cheque books

9. Negotiability and Endorsement of Cheque

9.1 Endorsement of Cheque

9.1.1.1Cheques generally crossed

9.1.1.2Restricted negotiability of cheques

9.1.2 Cheques issued in the name of organizations or legal bodies

9.1.3 Stop Payment Order

9.1.3.1 Request for Stop Payment Order

10. Customers’ Standing Instruction

II. Saving Account

1.2 Requirements to open SA

1.3 Type of S/A

1.3.2 OPENING OF ACCOUNT BY ILLITERATE

1.3.3 BLIND CUSTOMERS

1.3.4 JOINT SAVINGS ACCOUNT (AND or AND/OR)

1.3.5 ACCOUNT FOR MINORS

1.4 THE PROCESS OFCASH DEPOSIT TO SAVINGS ACCOUNT

1.5 PAYMENT INSTRUMENTS DEPOSIT TO SAVINGS ACCOUNT

1.6 WITHDRAWAL BY LITERATE CUSTOMERS

1.7 WITHDRAWAL BY ILLITERATE DEPOSITORS

1.9 BLOCKING INWARD