Professional Documents
Culture Documents
A Project Report
Submitted to
Agriculture Cooperative Staff Training Institute,
Jalandhar
By:
Sarabjit Singh
Clerk cum Data entry operator
DCCB: Fatehgarh Sahib
Branch: NandpurKalour
ACKNOWLEDGEMENT
I wish to extend my deepest gratitude to the staff members of The S.A.S. Nagar Central
Cooperative Bank, Mohali, for not only guiding my project but also enhancing my experience
with the richness of his experience during the entire duration of the project.. Last but not the
least I would like to thank faculty members of ACSTI for giving me the thorough information
regarding banking which helped me in my training.
It has been very informative practical experience for me and I extend my gratitude to the
department for making this field learning a part of our training. I am presenting this Field
Learning Report based on my training at the branch.
Study of various reports and returns being send to PSCB, NABARD, RBI, and Income
Tax Department:
Monthly Reports:
1. KCC scheme MIS report for the month
To: GM (NABARD)
Copy to: GM (O&A), PSCB
2. Progress report for the month
To: The Statistical Officer, PSCB
GM, Divisional Office
3. Banking Regulation Act,1949 (As applicable to cooperative Societies)- Return in
From No.2: To Deputy Chief Officer Rural & Credit Planning Department, RBI
CC to:- The DGM NABARD
The Registrar coop. societies
Divisional Manager
4. Targets and Achievements of MT Loans.
To:- The Registrar Coop. SOCs, PSCB Chd.
CC to:- Statistical office PSCB.
Divisional General Manager
5. Information Regarding cash credit fertilizer for the month
To:- the Asst. GM PSCB
6. Submission of NODC statement of ST SAO oil seed purpose and Revolving Cash
Credit (RCC) report for the month.
To:- the Deputy GM (O&A), PSCB
7. (i) Short Term Agriculture operations(SAO)
(ii) Certificate of Non Overdue Cover in respect of loans and advances for ST
SAO/OPP/NDAP/Other crops for the month (Separate NODC for SAO, OPP and RCC to be
furnished).
(iii) Certificate of Non Overdue Cover in respect of loans and advances for ST
SAO/OPP/NDAP/Other crops for the month (for Revolving Cash Credit)
8. Certificate of Non Overdue Cover for ST Agriculture Loans from NABARD for the
month
CC to (a.) DGM, NABARD
(b.) DGM Mumbai
(c.) Divisional Manager
11. Certificate of Non Overdue Cover for the short term/individual from RBI for the month
12. Certificate of Non Overdue Cover Medium Term Normal for Agriculture purposes from
Reserve Bank of India
13. Certificate of Non Overdue Cover for Medium Term Conversion for Agriculture purposes
from RBI for the month
14. Submission of return in form-I
To:- The DGM, RBI
15. DTL daily, monthly, quarterly report
16. Progress in Doubling of flow of Agricultural Credit and implementation of Debt Relief
Measures Monthly information for the month
To: The Deputy General (O&A)
CC to: I. The Divisional manager
II. The Lead District Manager for information
18. Trail Balance and Balance Sheet
To: NABARD, Managing Director, PSCB and Registrar, Cooperative Societies
Quarterly Returns from Stat Cell:
1. Form No. 9
2. Section 23 of BR Act 1949 Branch Banking Statics Submission of quarterly returns,
revision of Performa I & II.
3. CMA (Credit Monitoring Arrangements Reports)
4. OSS Report
Annual Report from Stat Cell:
1. Statement Sharing branch open/close
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Form II
Monthly
Form VI
Form VIII
Annual
Accounts
and
Balance
sheet
Form IX
Off-site
Surveillanc
e (OSS)
returns
Return
Due Date
Before 20th of every
month
a
return
showing the amount
so held on alternate
Fridays during a
month
with
particulars of its
Demand and Time
Liabilities in India.
Before the close of
the month succeeding
that to which the
return relates.
As and when the
bank
intends to open new
office of business
Annual
Annual
Monthly
Half yearly
31March and
30 September
Half yearly
accounts
Statement, 31 Oct.
for Sept statement
Half yearly
Annual
Annual
31 May
30 April
Various Compilations:
Various types of compilations are being done in Stat Cell, as all branches report to Head
Office in Stat Cell with various daily, monthly, quarterly and yearly reports. By combining all
those reports, common reports are being generated, which are being sent to various
concerning authorities like RBI, NABARD, PSCB, Division Office, Lead Bank etc.
Every Bank calculates their Demand and Time Liabilities on daily basis for smooth
functioning of the bank. On the basis of these Daily DTL reports of all branches, one
common report of DTL is being generated which calculate DTL on First Friday of the month
and then fortnightly (second alternate Friday of the month) of the Bank.
Daily Position of Reserve and Liquid Assets
Liabilities in India
Demand Liabilities
1.
2.
3.
4.
5.
Time Liabilities
6. Fixed Deposits
7. Saving Deposits(Time Liability Portion only)
8. Borrowing
9. Other Time Liabilities
10. Total Time Liabilities (A6+A7+A8+A9)
All branches send their Trail Balance report to the Head Office, with the compilations of all
those one Trail Balance is prepared for the Bank.
Purpose-wise reports of all branches are also sent to Stat Cell, where reports of all branches
combine to prepare one common report of the Bank. In purpose-wise report, disbursements of
various loans and advancements are covered.
Sr No.
1.
Periodicity
Daily
Subject/Content
Cash in hand & balances with other banks
GL balance of all account
2.
Weekly
3.
Weekly R&D
Weekly
4.
Monthly R&D
Monthly
5.
MIS
Monthly
6.
Monthly
7.
books of account
Anti-Money Laundering
9.
Report
demand
Monthly
DCB Statement
10.
Quarterly
LBR-3
11.
OD Balance Statement
12.
LBR-1(Annual
13.
Plan)
Quarterly
Credit Quarterly
Yearly
In 63 A the salary of the defaulter will get attached , 63B includes sale of asset and in 63C the
arrest is made.
In which AR appointed as sale officer and DR appointed as Recovery officer. AR takes a
sales demand date from the DR and the auction date is decided for the particular case.
Modes of recovery
There are various modes of recovery:
By attachment and sale of the charged assets or the other movable or immovable
Documentation
The borrower may be asked to execute various documents in favour of the bank. The nature
and type of documents to be executed by the borrower will depend on the type and nature of
advance granted. The bank may ordinarily obtain the following documents:
1. Demand/Time promissory note
2. Letter of continuity in the case of cash credits and overdrafts
3. Letter of pledge/hypothecation, etc. creating a charge on the assets offered as security
4. Mortgage and guarantee deeds.
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Consortium arrangements
In respect of consortium advances each bank is required to classify the borrowal accounts
according to its own recovery, i.e. on the record of recovery of the individual member banks.
The banks participating in the consortium should, therefore, arrange to get their share of
recovery transferred from the lead bank of the consortium. The S.A.S. Nagar invested
Rs.10crores in consortium with the PACS bank.
Employees' record maintained:
All the incidents relating to the official career of a Government employee, which have a
bearing on pay, promotion; leave, pension etc. are recorded in the service record of such a
Government employee particularly in respect of the following incidents along with the dates
and the relevant authentication /orders. I observed
(ii)
(iii)
(iv)
(v)
Fixation of pay.
(vi)
Grant of leave.
(vii)
Deputation/ transfer
(viii)
(ix)
Resignation.
(x)
(xi)
Promotion.
(xii)
(xiii)
(xiv)
Reversion.
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(xv)
Reduction in rank or pay along with the precise reasons thereof viz.
Whether reduction is on account of inefficiency or reduction in
establishment or abolition of the post held by the employee.
Each entry in the service record shall be neatly made and duly attested by the Head of
Department or Office, as the case may be. However, where an employee himself is the Head
of the Department or Office, the attestation of the entries in his service record shall be made
by the next higher authority.
Procedure relating to establishment matters
Firstly, any application or others get received at establishment branch of the bank and receipt
number is put on it. Then, it is passed over to competent authority, where authority takes
decision on it and then again it is returned back to Establishment section with decision taken
by competent authority. And then, procedure is followed accordingly, letter is dispatched to
concerned authority informing about decision of the authority.
Salary and TA/DA matters:
Salary means basic pay inclusive of other emoluments treated as pay.
The Grade pay range as I studied in the service rules book is as under:
Grade Pay Range
I)
II)
III)
IV)
V)
Travelling Allowance:
As the Establishment incharge told us that:Employees shall be paid T.A. @ as applicable to the employees of the Punjab
Government from time to time except the following: Daily allowance will be paid @ 1 times of the rate applicable to the employees of
the State Govts.
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No allowance should be permissible within a radius of 8 kms from the place of duty.
Road mileage at fixed rates discussed subsequently should, however, continue to be
paid for this journey except to employees who are in receipt of local travelling and
conveyance allowance.
Journey beyond 8 kms and within 25 kms of the place of duty should be treated as
local journeys. Daily Allowance should be admissible for a calendar day at half the
normal rate irrespective of the period of absence if the employee returns to head
quarters the same day. But when such a journey involves night stay, an employee
should be entitled to normal travelling allowance;
A full Daily Allowance should be admissible for journeys beyond 25 kms from
headquarters if the period of absence is six hours or more. If the period of absence is
less than six hours, half Daily Allowance should be admissible
File Management:
Files of employees, circulars and other concerned matters are maintained in Establishment
Section. Files of enquiries, legal matters against employees and likewise are kept at
Establishment against allotted file number. Index are readied for files for convenience.
Disciplinary proceedings:
In disciplinary proceedings, a Govt. employee has to follow the service rules. In case there is
a violation of these rules disciplinary proceedings are taken against the employee. These
disciplinary proceedings include warnings to the employee, delaying in annual increment,
transferring to some other place, suspension from the job.
Suspension
(a) The Managing Director may suspend any employee against whom action is proposed to
be taken, if in his opinion the attendance of the employee on duty during the period that the
charges are under investigation against him, is likely to affect the investigation or working of
Bank or PADB.
(b) During the period of suspension, an employee shall be paid subsistence allowance equal
to 50% of his salary with usual allowances admissible to him and on that basis the amount of
such subsistence allowance shall be paid by the bank.
Provided that if the employee placed under suspension is subsequently completely exonerated
of the charges, he shall be eligible to full pay and allowances for the period of suspension and
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the entire period will be treated as duty. If, however, he has not been completely exonerated
of the charges, the competent authority shall specify in the order of re-instatement as to how
much amount of pay and allowances are to be paid for such period.
Note: - Suspension of an employee will not constitute penalty, and as such no appeal shall lie
there-against.
Service rules (common and non-common cadre rules)
The Service Rules are applicable on the employees which are defined under The Punjab State
Cooperative Financing (Common Cadre) Rules -2004 & 1970-71 for common Cadre and The
Punjab State Cooperative Financing Institutions Service Rules 1958 (Non- Common Cadre)
for non-common cadre employees.
Reconciliation cell
There are two sources for a bank branch to find out the balance at bank H.O. One source is
H.O. account in the branch and the other source is branch account in the books of H.O. which
is revised regularly from H.O. in shape of account statement.
These both account statements are governed by the same set of transactions and they should
show the same amount of balance although the nature of balance will be different. If H.O.
account in branch a debit balance, the account statement received from H.O. will show a
credit balance and vice-versa. Bank should prepare a reconciliation statement to reconcile the
two balance periodically. This statement explains the difference between the two balances.
The reasons contributing to the difference between two sources may be:
Cheques deposited for collection but not yet collected.
Cheques issued for not yet presented for payment
Credits in H.O. accounts only
Debits in H.O. accounts only
How to prepare Bank Reconciliation statement
We are having three statements preparing the current reconciliation statement.
Branch account is H.O.
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SLR itself works as an investment as we get some interest on the amount. If we keep surplus
SLR amount, then we dont get extra benefit of that amount except standard interest rate on
SLR. So we avoid investment of surplus funds in SLR.
Non-SLR investment
Besides giving loans to businesses and individuals, RBI has also allowed banks to invest in
various capital market instruments such as stocks and bonds issued by public and private
sector companies and commercial papers. In addition, banks are also allowed to invest in
various mutual fund schemes. Unlike SLR investments, there is no compulsion on banks to
invest in these instruments. Investments are entirely guided by commercial considerations
and many such investments are in accordance with the prescribed guidelines.
Non-SLR investment is FDs of State CBs with PSCB.
Presently, there are no surplus funds for investments with our State CB.
Investment Policy of the bank:
Investments are made in FDs with other banks in our bank. Time to time, bank is directed to
invest in such secured fields. Everyday our bank demand offering interest rates of FDs from
other banks. They send their current offered interest rates, then our bank invest in that bank
FD which offer the most in all offered rates. Investment period vary according to status of
availability of money and current DTL status of the bank. In case we had made investment in
FD and next day we got larger demand than amount available with us then we take loans
from other banks on those FDs or without FD whichever is convenient.
Borrowings from other institutes:
We speculate our future demand according to our DTL reports. And we could be demanded
for more amount than what could be available to us then we can borrow money from PSCB
and NABARD. If PSCB do not have that much amount with them that we demanded then
they can make it available to us from NABARD. If we take borrowing from NABARD then
there is margin of interest rate at every level from NABARD to PSCB to State CBs.
Share Capital
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Share capital or capital stock refers to the portion of a company's equity that has been
obtained (or will be obtained) by trading stock to a shareholder for cash or an equivalent item
of capital value. For example, a company can issue shares in exchange for computer servers,
instead of purchasing the servers with cash.
The term has several meanings. In its narrow, classical sense, still commonly used in
accounting, share capital comprises the nominal values of all shares issued (that is, the sum of
their "par values"). In a wider sense, if the shares have no par value or the allocation price of
shares is greater than their par value, the shares are said to be at a premium (called share
premium, additional paid-in capital or paid-in capital in excess of par); in that case, the share
capital can be said to be the sum of the aforementioned "nominal" share capital and the
premium. In the modern law of shares, the "par value" concept has diminished in importance,
and share capital can simply be defined as the sum of capital (cash or other assets) the
company has received from investors for its shares.
Besides its meaning in accounting, described above, "share capital" may also be used to
describe the number and types of shares that compose a company's share structure. For an
example of the different meanings: a company might have an "outstanding share capital" of
500,000 shares (the "structure" usage); it has received for them a total of 2 million dollars,
which in the balance sheet is the "share capital" (the accounting usage).
The legal aspects of share capital are mostly dealt with in a jurisdiction's corporate law
system. An example of such an issue is that when a company allocates new shares, it must do
so in a way that does not inequitably dilute existing shareholders.
Reserves of Bank: Bank reserves or central bank reserves are banks' holdings of deposits in
accounts with their central bank (for instance the European Central Bank or the Federal
Reserve, in the latter case including federal funds), plus currency that is physically held in the
bank's vault (vault cash). The central banks of some nations set minimum reserve
requirements, which require banks to hold deposits at the central bank equivalent to a
specified percentage of their liabilities (such as customer deposits). Even when no reserve
requirements are set, banks commonly wish to hold some reserves, called desired reserves,
against unexpected events such as unusually large net withdrawals by customers or even bank
runs.
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Cash Flow Statement: In financial accounting, a cash flow statement, also known as
statement of cash flows, is a financial statement that shows how changes in balance sheet
accounts and income affect cash and cash equivalents, and breaks the analysis down to
operating, investing, and financing activities. Essentially, the cash flow statement is
concerned with the flow of cash in and out of the business. The statement captures both the
current operating results and the accompanying changes in the balance sheet. As an analytical
tool, the statement of cash flows is useful in determining the short-term viability of a
company, particularly its ability to pay bills. International Accounting Standard 7 (IAS7), is
the International Accounting Standard that deals with cash flow statements.
People and groups interested in cash flow statements include:
Accounting personnel, who need to know whether the organization will be able to
cover payroll and other immediate expenses
Potential lenders or creditors, who want a clear picture of a company's ability to repay
Potential investors, who need to judge whether the company is financially sound
Potential employees or contractors, who need to know whether the company will be
able to afford compensation
Various reports and returns send to higher agencies such as PSCB, NABARD AND RBI
Head office sends daily, monthly, quarterly, half yearly and yearly reports to RBI, NABARD
AND PSCB. These reports are:
1. Advances
2. CRR
3. SLR
4. CTR
5. STR
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6. DM meeting reports
7. Development action plan
8. Other financial statements
Income tax department
HO pays advance tax to Income tax department. Advance tax is paid on the basis of projected
profit for next year. This tax is paid in three parts.
Clearing section
The Head Office clearing section acts as Service Branch and functions as a Clearing Centre
for all the instruments such as Drafts, Cheques etc. received from its Head Office customers
and those of its branches. These instruments will have to be presented for collection through
the Clearing House. The Clearing House functions during the stipulated hours (Prefixed
hours) which are communicated to all Member Banks. The Member Banks strictly adhere to
these Clearing House hours.
The Head Office (clearing section) will arrange to collect the inward clearing
On getting the inward clearing instruments, the staff of the clearing section, Head
Office, will have to verify the number of cheques as per the claim slip received from
Clearing House. Then record the number of instruments and the total value against the
respective branches in the inward clearing Register and debit the respective Branch for
the total value of the presentation on the Branch. It will then send the claim slip to the
Branch along with the relative instruments.
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With the Claim slip the clearing cheques will be sent to the respective branches which
While verifying the inward clearing instruments with the Claim Slip received from the
clearing section, Head Office. If there is any difference in the amounts claimed, the same
will be notified to the Head Office clearing section
Outward clearing
All the outward clearing instrument s received from the branches with a covering
schedule called Local Clearing Cheques List, the clearing section (Head Office) staff will
first count the number of instruments attached to such a list and verify whether the same
agrees / tallies with the number of cheques recorded therein.
Then the cheques will be encoded. Under the process of Encoding only the amount
for which the said cheque is drawn will be printed in the white Band at the bottom of the
cheque.
For each branch a Batch Ticket will be prepared which will relate to presenting
branch code number, number of instruments and total value of cheques presented in
outward clearing.
For the bank as a whole a Block Ticker will be printed this will contain bank code
number, service branch code number, number of Batch tickets and total value of outward
clearing cheques lodged.
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