GENERAL BANKING

General Banking is the starting point of all the banking operations. General Banking department aids in taking deposits and simultaneously provides some ancillaries services. It provides those customers who come frequently and those customers who come one time in banking for enjoying ancillary services. In some general banking activities, there is no relation between banker and customers who will take only one service form bank. On the other hand, there are some customers with who bank are doing its business frequently. It is the department, which provides day-to-day services to the customers. Every day it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, demit funds, issue bank drafts and pay orders etc. since bank in confined to provide the service everyday general banking is also known as retail banking.

Account opening Initially all the accounts are opened through deposit money by the customer and these accounts are called deposit account. Normally a person needs to open an account to take services from the bank. Without opening an account, one cannot enjoy variety of services from the bank. Thus, the banking usually begins through the opening of the account with the bank. The money deposited with the banker is not held by him in trust but as his debts to the depositors and the relationship that exists between the banker and the depositor is strictly that of debtor and creditor. The banker becomes the owner of the money and is free to utilize the same in any way he chooses and is bound at the place where the deposits are maintained to make repayment thereof by an equal amount on demand, at notice or at the end of the specified period with or without interest depending on the nature of the deposits. The deposits are accepted by the banker through current and saving accounts, which is withdraw able by cheques. The deposits are repayable on demander otherwise and withdraw able by cheques, draft, and order or otherwise. Dhaka Bank Ltd. keeps account like: 1. Current account 2. Savings account 3. Short Term Deposit 4. NFCD/ RFCD account 5. Fixed Deposit 6. Special Savings Scheme 7. Others (Gold, Silver, Platinum) Who can open an account?: These above accounts may be open by Individual or Joint. Partnership Club, societies, trusts etc. Proprietorship Private Limited Co. Public Ltd. Co. Local authority / City Corporation Sector Corporation Non-Government school/ college/ university/ madrasha/ muktab

Necessary documents to open an account: When a customer/organization/company/firm/society/club etc. want to open bank account he/she have to filled a bank prescribed form and have to attached their organizations documents are as follows. General Properly filled-in form Authorized specimen signature An introducer and his signature Minimum required initial deposit Passport size photograph-duly attached by the introducer Proprietorship All general formalities and documentation should be adhered to as required for Proprietorship account. Attested photocopy of valid Trade license. Partnership All general formalities and documentation should be adhered to as required for partnership account. Copy of notarized Partnership Deed certified by all partners of registered partnership deed- duly certified by the registrar of joint stock companies and firm. Partnership resolution signed by all the partners to open account with DBL indicating the type of account and mode of operation. Private/ Public Limited All general formalities and documentation should be adhered to as required for Private/ Public Limited account. Trade license Certified copy of Memorandum and Articles of Association Certified copy of Certificate of incorporation List of Directors as per return of joint stock company with signature Board Resolution( certified by the chairman/ secretary of the company) for opening account with the bank FORM-12 and Schedule-10 (duly certified by the registrar of joint stock companies and firms). Certificate of commencement of Business (duly certified by the registrar of joint stock companies and firms) only in case of public limited company. Club, societies, trusts Certified copy of registration certificate. Certified copy of charter/ by laws and regulation/ constitution of relevant organization. Certified copy of Resolution of managing committee/ executive committee to open account with DBL indicating the type of account and mode of operation (certified by the chairman/ secretary). List of members of managing committee/ executive committee (certified by the chairman/ secretary) Non-Government school/ college/ university/ madrasha/ muktab Certified copy of registration certificate. Copy of Resolution of managing committee/ governing body authorizing opening and operation

of an account with DBL- Certified by gazetted officer List of members of managing committee/ governing body- Certified by gazetted officer.

Sector Corporation Resolution of board of directors/ competent authority to opening and operation of an account with DBL. Certified list of board of directors (if any). Certified copy of relevant Presidential Order/ Act of Parliament establishing the corporation. Local authority / City Corporation Certified copy of statute/ any other law by which the body is created and governed. Resolution of municipal committee/ body (certified by the Chairman/ Mayor / relevant authority) Competent authority, list of members of such committee / body (certified by the Chairman/ Mayor / relevant authority) After observation of all the formalities/documents mentioned above, the applicant is required to deposit minimum Taka required for opening an account. This is called initial deposit. Any one can open account from different currency like (BDT, USD, GBP, EURO, JPY etc.). As soon as this money is deposited, the bank opens an account in the name of the applicant. It should be noted that the permission of the component authority for opening of an account is a must. The banker then supplies the following books to the customer to operate the accounts Deposit book: A deposit book is given to the customer for depositing money in the account. Cheque book: A Cheque is written order to the bank given by an account holder to pay money from his account. A cheque is usually on the printed form supplied by the bank to their account holder.
Cheque Issuing is Two Types: Direct requisition slips Cheque Books requisition slip

Customer Service Officer receives these types of slip from the clients and gives the cheque books under processing. Processing means Cheque Books collect from the VOLT and the put account number in the cheque book, write down the serial number of the cheque book in the requisition slip and cheque book register, then Verified client signature. After all this things the Principal officer sign in the cheque leaves and sent the cheque book to another Principal officer for sign, after his sign the client receive the cheque book. These things the Principal Officer for sign, after his sign the client receive the cheque book. Then Principal Officer posting that cheque books leaves number in the computer data processing system.

A cover file containing the requisition slip is effectively preserved as vouchers. If any defect is noticed by the ledger keeper, he makes a remark to that effect on the requisition slip and forward it to the cancellation officer to decide whether a new checkbook to be issued to the customer or not.

Parties to a cheque: Drawer -A person who orders the bank to pay money from his account Drawee -A person, which pays the amount of the Cheque Payee -A person who receives he amount of the cheques When Banker makes payment of a Cheque: The Cheque should be written in the banks supplied printed cheque form. The Cheque should be presented for payment only to the branch of this bank on which it draw. The Cheque should be submitted with a date. The amount in words and figure must be same. The account holder signs the scheme There should be sufficient balance/funds in the account of his customer to meet the cheque. When Banker may refuse payment of a Cheque: Whether the Cheque is post dated. Whether the Cheque is out of date Whether the fund is insufficient Whether drawer does not sign the cheque On receipt of customers stop payment instruction On receipt of a notice of a customers death On receipt of a notice of customers insanity Answer generally given in case of dishonored cheque: Refer to drawer; Not arrange for; Exceeds arranged; Endorsement irregular; Effects not cleared; Drawer deceased; Words and figures differ; Drawers signature differs; Payment stopped by the drawer; Cheque is mutilated Cheque is out of date /post dated requires revalidation; Crossed cheque please present through a bank. Different Products of General Banking: Current account: The client can enjoy maximum flexibility and convenience when he/she opens a Current account with Dhaka Bank. This is a non-interest bearing account. Savings Account: The Savings account allows the client to have interest income on his/her deposit whilst the account can be used for other transaction purposes. He/she can draw a maximum number of two cheques per week; exceeding this number will forfeit the interest or the month. DBL offers a competitive interest rate (5.5%) on the account on a daily basis provided that the balance of the account is minimum Tk. 10,000.00 at the end of business that day. Interest is applied to the

account on half-yearly rests. Short Term Deposit Account: DBL Short Term Deposit Account is a unique blend of flexibility and high return on public deposit. The client can use this account like a current account whilst s/he earns interest on the account when the stipulated minimum balance is maintained in the account. DBL offers a very competitive interest rate (5.50%) and the interest is calculated on a daily product basis. Deposit Schemes Various types of Deposit schemes available with Dhaka Bank Limited are: Fixed Deposit Receipt (FDR) Deposit Pension Scheme (DPS) Double Deposit Special Deposit Scheme/Income Unlimited Smart Plant Gift Cheque Fixed Deposit Receipts: Clients can open Fixed Deposit accounts for 1 month, 2 months, 3 months, 6 months, 1 year and 2 years. DBL offers competitive interest rates. Clients can place their deposit under lien with DBL and take a loan, buy shares or open an overdraft account to meet their cash requirements. Interest rates on deposits vary from time to time. Deposit Pension Scheme: Deposit Pension Scheme is one of the most profitable deposit schemes that are available at Dhaka Bank. This is a special type of savings scheme designed for the fixed income group. A certain amount is deposited every month in an account which is accumulated over a specified period of time along with interest accrued during that period. Upon maturity the total amount (monthly accumulated deposits & accrued interest) is made available to the DPS account holder. Size of Monthly Installments: Fixed monthly installment sizes are: Tk. 500.00, and its multiple up to a maximum of Tk. 20,000.00. Tenure: 4 years, 5 years, 6 years, 7 years, 8 years, 9 years & 10 years. Deposit Double Deposit Double is a time specified deposit scheme for individual clients where the money deposited will be doubled in 7 years and 8 months. Product Features Deposit Min Tk 50,000 (singly or jointly) with multiples of Tk 10,000 Max Tk 20,00,000 Amount (in single name) Tk 35,00,000 (in joint name) Tenure 7 years 8 months If any client chooses to withdraw the deposit before the tenure, then s/he will only Premature be entitled to prevailing interest rate on savings account in addition to the initial Encashment deposit. However, withdrawal of the deposited amount before one year will not earn any interest to the depositor(s). Special Deposit Scheme/Income Unlimited Product Features

Deposit Amount In multiples of Tk 50,000. However the minimum deposit will be Tk 1,00,000 (singly or jointly) and the maximum Tk 50,00,000 (singly/Jointly). Interest Due One month after the initial deposit date the interest will be credited to the savings/current account. Tenure 3 Years Monthly income Tk 1,000 subject to 10% Income Tax on Tk. 1,00,000.00 Rate of Interest variable Gift Cheque Gift Cheque is another type of special deposit scheme introduced by Dhaka Bank Limited. The concepts of Gift Cheque are close to the concepts of Fixed Deposits. The only difference between the two products is: Fixed Deposit is issued for any amount but Gift Cheque is issued in the denominations of Tk. 100.00 and Tk. 500.00 & Tk. 1000.00 only. Any one can purchase Gift Cheques for any amount but in multiples of Tk. 100.00 and Tk. 500.00 & Tk. 1000.00. Gift Cheques are available at all the branches of Dhaka Bank Limited against deposit of cash. The Gift Cheque holders can encash the cheque from any branch of Dhaka Bank Ltd. Shopnojatra Student Account Recently Dhaka Bank launched Shono Jatra Student Services. It is destined to provide a One Stop solution for abroad going students. Understanding the need of the students, this service has been tailored to provide a same day banking solution for all the banking needs of an abroad going student at the lowest charge in the market. The product code is 206 for this special account. Other Products & Ancillary Services of DBL ATM Card Dhaka Bank ATM Card enables clients to withdraw cash and do a variety of banking transactions 24 hours a day. ATMs are conveniently located covering major shopping centers, business and residential areas in Dhaka. Before year 2010 Dhaka Bank was using only other networks. But from the end of 2010 Dhaka Bank launched it's own ATM booth at Gulshan, Banani, Uttara, Narayangong, Chittagong etc. and construction is going on different places like Dhanmondi, New market, Baridhara, DEPZ, Rajshahi, Goran, BB Road, Bogra, Rangpur, Sylhet Uposhahar, Agrabad, Cox's Bazar Etc. Dhaka bank has one of the largest ATM networks in the country after being tagged with DBBL, AB bank and BRAC bank Q-cash & Cashlink. With Dhaka Bank ATM card clients can Withdraw cash from account. Make balance enquiry. Pay BTTB Telephone bills. A client can withdraw any amount up to Taka 20,000 per transactions with maximum Taka 100,000 per day. However, he may use his card as many times as he wants to carry out other transactions. Phone Banking Dhaka Bank Phone Banking service allows clients to conduct a variety of transactions by simply making a phone call from any where. They can enquire about the balance in their accounts, check transaction details or request for account statement by fax or mail. They can also talk to an Officer to discuss their loan requirement or any other transaction details. Phone Banking is available for all customers of all the branches. Non-customers may also avail the service to obtain general information and enquire about DBL products and services. Phone Banking is

being broadened to cover all DBL branches in the near future. Online Banking Convenience is the key feature of DBL service. DBLs aim is to provide every customer easy access to his/her account from any branch and ultimately from any where. Recognizing the need of customers DBL has networked all of its branches allover the country to permit its valued customers to carry out transactions from any branch. Cash withdrawal or deposit or any type of personal banking transactions can be performed using the any Branch office. Internet & SMS Banking Dhaka Bank has recently landed its mark in modern banking arena by introducing Internet and SMS Banking to add to its wide range of other banking products. All account holders of DBL are eligible for Internet and SMS Banking. Through Internet Banking an account holder can: Access account information any time from anywhere Transfer funds Open and close Term Deposit Request for cheque book and account statements Place stop cheque instruction Enquire interest and foreign currency rates and many more Through SMS Banking an account holder can: Access account information any time from anywhere Request for cheque book and account statements Make cheque status enquiry Place stop cheque instruction Make utility bill payment Safety Locker Services Customers can use the locker facility of Dhaka Bank Limited and thus have the option of covering their valuables against any unfortunate incident. To avail the locker service, however, one must open a savings account with Dhaka Bank. Utility Bills Services Dhaka Bank Limited offers a multi-mode utility bill payment facility for its customers. Whether it is cellular phone bill, telephone bill, electricity bill or water bill, DBL offers various modes and convenient ways to make bill payment easy for its clients. Clients can use DBL E-Cash ATM to pay bills at their convenience or visit DBL branches to make payment for bills. Currently, Grameen Phone and City Cell mobile phone bills and DESA bills are accepted at all DBL branches. More utility providers will soon be added to this service for the clients convenience. Recently Dhaka Bank introduce 3 type of new account (SILVER, GOLD, PLATINUM).What is required to operate them are given below-

FEATURE Minimum Balance Deposit Interest Interest Calculation

Dhaka Bank Silver Account Tk 30,000 7% (Paid Monthly) Interest will be calculated on daily balance. If end of the day balance of the account fails below Taka 30,000 ,client will lose the interest for that day. 04 withdrawals Free 1 cheque book of 50 leaves free per year Free. Limit up to Tk 50,000 Free Salaried Individual, Professionals National ID /Passport Salary Certificate Last Six Months Bank Statement TIN Certificate Minimum Income Tk 30000 Post facto CIB Tk 2,500 As per NBR Rules. 0.5% less than prescribed rate

Dhaka Bank Gold Account Tk 50,000 7.5% (Paid Monthly) Interest will be calculated on daily balance. If end of the day balance of the account fails below Taka 50,000 ,client will lose the interest for that day. 08 withdrawals Free 2 cheque book of 100 leaves free per year Free. Limit up to Tk 90,000 Free Salaried Individual, Professionals & Entrepreneurs National ID /Passport Salary Certificate Last Six Months Bank Statement TIN Certificate Minimum Income Tk 75000 Post facto CIB TK 3,500 As per NBR Rules. 0.5% less than prescribed rate

Dhaka Bank Platinum Account Tk 1,00,000 8.5% (Paid Monthly) Interest will be calculated on daily balance. If end of the day balance of the account fails below Taka 1,00,000 ,client will lose the interest for that day. 12 withdrawals Free 3 cheque book of 150 leaves free per year Free. Limit up to Tk 5,00,000 Free Salaried Individual, Professionals & Entrepreneurs National ID /Passport Salary Certificate Last Six Months Bank Statement TIN Certificate Minimum Income Tk 150000 Post facto CIB Tk 5,000 As per NBR Rules. 0.5% less than prescribed rate

Maximum Monthly Withdrawals ATM Cheque Book Credit Card SMS & Internet Banking Who can apply? Document Required

Yearly Free Tax, Excise Duty & VAT Interest rate on Dhaka Bank Retail Loans

CLEARING
A clearing house is such a type of house where all members Bank settled their inter bank transactions through their Bangladesh account. As the central Bank, Bangladesh Bank is the leader of clearing House in Bangladesh. There are 53 members bank in Bangladesh under central Bank. Clearing transaction is of two types one is inward clearing another is outward clearing.

Inward Clearing: When any client of any Bank gives cheque to the creditors, the creditor generally gives deposit to their respective Bank account for collection. Then the banks will send those cheques to Bangladesh Bank. The Bangladesh Bank then sends this type of cheques to their respective Bank main branch this type of transaction is called inward clearing. This is presented in below:

Drawee

Deposit to payee bank

Respecting Branches

Transfer to B.B.

Respective bank head office

Outward Clearing: When the bank gets different types of cheques of different banks from their client for collection, they then send cheques to their main branch. The main branch then sends those cheques to Bangladesh Bank. The Bangladesh Bank sends those to the respective banks. The process is as follows:

Client

Gives to

Respective Banking Branch

Head Office

Branch Office

Bangladesh Bank

Different Banks Head Office

There are some seals DBL uses When customer presents his cheque DBL at first gives one seal named crossing seal. Then they put seal on the back side of the cheque, 1. In case of name of payees and name of depositor slip--- (PAYEES ACCOUNT CREATED FOR DHAKA BANK LTD. Dhanmondi Branch, Dhanmondi). 2. If the self cheque --- (Depositor Account Credited For DHAKA BANK LTD. Dhanmondi Branch, Dhanmondi.) 3. Another Branch OCC (Outward cheque for collection) Our Branch Endorsement Confirmed for DHAKA BANK LTD. Dhanmondi Branch, Dhanmondi 4. If the cheque is named by Bank ( RECEIVED PAYMENT For DHAKA BANK LTD Dhanmondi Branch, Dhanmondi) 5. When cheque is out of bank range (Payees Account will be credited on realization For DHAKA BANK Dhanmondi Branch, Dhanmondi ) 6. When depositor slip is different in case of bearer cheque (Depositor Account will be Credited on realization For DHAKA BANK LTD Dhanmondi Branch, Dhanmondi)

New Developments in Clearing With the introduction of MICR cheques and automated clearing house by Bangladesh bank, the scenario has changed completely. The central bank of Bangladesh launched its automated clearing house on October 7, 2010 this year aiming to facilitate the country's overall business activities as well as boost the economy Under the new system, the payment will be settled using automated cheque clearing system among 1,100 branches of all 47 scheduled banks and the government in the capital Dhaka initially. Traditional clearing house - Dhaka Bankers Clearing House has been shut down for ever from October 7. The Bangladesh Automated Clearing House (BACH), the automated payment systems platform, has two components - the first one is Bangladesh Automated Cheque Processing Systems (BACPS) and the second Bangladesh Electronic Funds Transfer Network (BEFTN). Such payment and settlement system will help the banks to automate and digitize their functionalities, he said, adding that customers can use funds on t+1 instead of the existing t+2 as per the new payment system. Under the arrangement, any bank cheque amounting to BDT 500,000 and above will be cleared on the same day of depositing the same with the central bank. The basic features of BACPS are the adoption of new cheque design standard with a Magnetic Ink Character Recognition (MICR) code line and the exchange of cheque-image and data instead of paper cheques for clearing and settlement purpose. Retention of the original paper cheque will become the responsibility of the presenting bank rather than the paying bank. Banks are required to make arrangement and develop infrastructures to meet the requirements of the new system. Bangladesh Bank will adopt necessary Regulation(s) and issue Operating Rules and Procedures in this regard. Standards of cheques for BACPS have already been circulated and banks have meanwhile been advised to take steps to print uniform standardized cheques with MICR line.