Cash Systems and Procedures – A Handout (Module - 2) Chapter or Module Chapter or Screen title Voice-over Text
Cash Systems and Procedures
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Cash Remittances – Transportation / Welcome
Welcome to the Module on Cash Remittances – Transportation
Welcome to the Module on Cash Remittances – Transportation
Chapter or Module Chapter or Screen title
Cash Systems and Procedures
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Objectives By the end of this chapter, you should be able to:
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Define Cash Remittance process of SBI and RBI Relate to the security arrangements related to cash remittance List the various precautions and security guidelines of cash remittance process
By the end of this chapter, you should be able to: • • •
Define Cash Remittance process of SBI and RBI Relate to the security arrangements related to cash remittance List the various precautions and security guidelines of cash remittance process
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Chapter or Module Chapter or Screen title
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Cash Systems and Procedures
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Cash Remittances – Transportation / Defining Cash Remittance Process In cash based economies remittance transfers are cash to cash and may take place through formal and informal channels such as RBI to Currency Chest, SBI to respective branches, and SBI to other bank branches. Click each tab to learn more. Once the chest receives the cash amount from RBI, the fresh notes are verified or examined as per the procedure and the note packets are bundled on completion of examination. Click on the Circular for details. Click each tab to learn more.
RBI to Currency Chest In cash based economies remittance transfers are cash to cash and may take place through formal and informal channels such as RBI to Currency Chest, SBI to respective branches, and SBI to other bank branches. RBI to Currency Chest After the cash amount is received: • The fresh notes shall be verified or examined as per the procedure in vogue and the note packets shall then be subjected to the bundling procedure as mentioned in the circular • The notes shall be subjected to detailed examination as per the procedure or in vogue • On completion of the examination, the note packets shall be bundled as per the bundling procedure as mentioned in para 3 of the directives SBI to SBI Branches After receiving the cash amount by the branch: • Note packets and bundles which are prepared as per the procedure detailed in the circular, need not be recounted at the receiving branch during remittances to another till such time as the bundle continues to be securely bundled and the note slips of the CIC and or Assistant (Cash) or SWO etc. are intact. • The representative of the remitting Branch accompanying the remittance shall be relieved immediately after me remittance is received and found prima facie correct. • If any doubt arises like tampering of strings or note slips on bundles and or breaking away of paper or polymer or twine threads on packets, the bundle or packet shall be opened in presence of CIC of the receiving branch and the representative from the remitting branch and if any deficiency in quality and or quantity is found in the bundle or packet, the entire bundle shall be sealed in their presence and returned to the remitting branch along with a certificate from the CIC to the above effect and the relative debit advice. • When the notes are brought for use, the bundles shall be opened in the presence of receiving Assistant (Cash) or SWO etc. and CIC or any other authorized official and the procedure for receiving cash from CIC etc. • In the event any shortage or defect is detected, the packet shall be sealed in presence of Cash Assistant and CIC with an appropriate certificate thereon duly signed by both of them and returned to the remitting branch along with debit advice. SBI to Other Bank Branches At the receiving branch of the Bank: • Detailed examination shall be in the presence of representative of the remitting bank branch. • If any deficiency in quality and or quantity is noticed in packets, the relative bundle containing the packet (s) in which shortage has been detected shall be sealed and signed by representative of remitting bank branch and returned to the remitting branch. • RBI shall be advised suitably.
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Cash Systems and Procedures
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Security Arrangements for Cash Remittance While transferring cash between branches or RBI to currency chest, adequate arrangements need to be carried. The matter relating to security arrangements or armed escort, etc., in connection with cash remittance has been reviewed and it is felt necessary to reiterate the following instructions for meticulous compliance.
Security Arrangements The matter relating to security arrangements or armed escort, etc., in connection with cash remittance has been reviewed and it is felt necessary to reiterate the following instructions for meticulous compliance. Transport Arrangements •
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The transportation of Cash should as far as possible be in the Bank's own vans or vehicles or hired jeeps.
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The cash boxes must be loaded into the vehicle in the presence of accompanying Assistant (Cash) etc. or Assistant (Accounts), Guard and the Boxes should be kept in such a place to have a direct view of the boxes by the Assistant (Cash) etc. and accompanying Guard.
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The Cash box should be chained to the seat of the vehicle by which the remittance is transported by a stout chain and pad-lock, the key of which will be carried by the Assistant (Accounts) or Assistant (Cash) etc. accompanying the remittance.
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When the remittance is despatched by Train or Bus, the seats farthest away from the door should be occupied. The Assistant (Cash) or Assistant (Accounts or Cash) and the Guard accompanying the remittance must be seated in such a way that they are not taken by any surprise.
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Under no circumstances the Cash Box should be left unescorted. It should be ensured that the Driver of the vehicle to be engaged for the purpose must be present after reporting at the branch till such time the remittance is despatched.
The Escort or Guard accompanying the remittance must establish an all-round protection when the vehicle is stationary except when it stops due to traffic signal or any other reason. Transit Arrangements • During transit, the accompanying Guard or Escort is responsible for the physical protection of the boxes containing Cash. They will take action on their own to meet a situation in an emergency (e.g. hold up, traffic accidents etc.). They should use the Guns for self-defence and protection of the Cash. In case of an accident or a mechanical failure or any untoward incident every effort should be made by the employees accompanying the remittance to advise the nearest Branch or remitting Branch and or Police immediately. •
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The escort accompanying must be alert and vigilant and should not divert his or their attention while performing escort duties.
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Any vehicle parked outside the branch for long should be viewed with suspicion by the Branch Staff. Details should be ascertained about its parking before the remittance is sent. • Special watch should be kept on any vehicle following the Cash Van or Vehicle. If in doubt, slow down and allow it to overtake the Cash Van. If it does not overtake and persists in following, the Cash Van should be driven to the nearest Police Station or Branch Premises for additional protection. In case of suspicion, the registration number of the Vehicle following the Cash Van should be noted and the
matter be reported to the police at the first opportunity. •
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On return to the parent branch, a detailed report of this incident must be made to the Branch Manager, who should take up the matter with Police for further investigation, if considered necessary.
Routes and Timings should vary to the maximum extent possible. A proper record of routes used should be maintained.
The Driver, the accompanying Assistant (Cash) etc. and Escort or Guard should be alert for fake accident, bogus police officers, unusual road blocks and unexpected traffic diversions. Escort Arrangements • Adequate armed escort should be provided for sending cash remittances in addition to the accompanying Assistant (Cash) etc. • All remittances exceeding Rs.50 lacs, whether carried by cash vans or hired vehicles, should invariably be accompanied by police guards. • Remittances exceeding Rs.10 lacs but below Rs.50 lacs sent by private vehicles hired by the bank should be accompanied by two guards with one weapon, while remittances up to Rs. 10 lacs will have minimum of one armed escort. • The remittances carried in 3 wheelers under unavoidable circumstances should not exceed Rs 2 lacs. •
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When remittances are sent in cases of urgency by public transport, one messenger should also accompany the remittance in addition to the armed escort or Assistant (Cash) etc. concerned, for carrying the remittance box.
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It may not be possible to provide the vehicle or armed escort for onward or return journey as the case may be, for carrying the empty box. In such cases, the Assistant (Cash) etc. concerned may be advised to go to the link Branch by public transport, and get the remittance by Bank's own or hired vehicle with adequate armed escort using a remittance box available at the link Branch.
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Similarly, remittances to the Link Branch will be sent by Bank's own or hired vehicles escorted by armed guard and after depositing the cash remittance, the Assistant (Cash) etc. concerned come back to his branch by Public transport without the remittance box. Sufficient number of boxes may be kept for the purpose for each branch. Loading or unloading of boxes will be attended to by the messengers at the remitting or receiving branches.
Chapter or Module Chapter or Screen title Voice-over Text
Cash Systems and Procedures
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Cash Remittances – Transportation / General Information Cash departments of bank and their branches follow the regulation to manage: In Branch Cash Handling Process, Cash Remittances – Transportation, Preparation or Handling of Note Packets, Receipt and Remittance of Treasure, Facilities for Exchange of Notes or Coins and Levy of Penal interest.
Let’s look at some of the standard guidelines of Cash Remittance process. • • • • • • •
Private and Confidential Secrecy of Time and Route Reserved Transportation Escort Services Transfer of Cash Boxes Key Handover Insurance Coverage
Private and Confidential Correspondence regarding remittances should be strictly private and confidential. All messages regarding remittances must be in code only. Secrecy of Time and Route •
Greatest secrecy should be maintained regarding despatch of remittances and no regular pattern should be followed by fixing days, timings, and the route.
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Destination and route should not be informed to unauthorised persons including the driver of the vehicle in advance.
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Whenever there is slightest ground for apprehending out-break of riots or risk of attack by dangerous elements in the area through which the remittance is to pass, remittance of cash should not be sent.
Reserved Transportation Cash Vans or vehicles should not be unduly delayed at branches and separate parking place for the vehicle should be reserved wherever feasible. Escort Services •
All the guards must be extremely alert and vigilant.
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Where more than one guard is on duty, the guard at the entrance should so position himself that he can give cover to the escort from inside the Branch during loading and unloading of cash boxes from the vehicle.
• Guards must never be used as carriers of Cash Boxes. Transfer of Cash Boxes It should be ensured that there is no obstruction between the entrances and the movement of Cash Boxes from and to the Strong Room or Unexamined Counter should be unhindered.
Key Handover The key (s) of the Locks of the Box (‘s) should under no circumstances be carried by the employees accompanying the remittances. Insurance Coverage The amount of any one remittance should not exceed the limit for which the Transit Insurance Cover has been arranged by Banking Operations Department at this Office.
