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Person is not a perfect in all the contexts of his life, He has a limited mind and mind thinking
approaches. It is the guidance from  $&%'c& that shows the man light in the darkness and
the person find his way in the light. Without this helping light, person is nothing but a helpless
creation.

The teaching of the 'c (&%c

&#c )*+ were also the continuous source of
guidance for me especially his order of getting knowledge and fulfilling once duty honestly was
key motivation force for me.

With prayers of my (% and support of my %& it became possible to formulate this
report. I pay high regards to them.

I am also thankful to all my  # and c" who helped me and provided me support
to complete this hard task.

I like to thank ,# cccespecially as she helped me remarkably for this internship.

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MCB was incorporated in 1997 and was later privatized by the Government of Pakistan. The
Nishat Group bought the majority shares of the bank and so got the rights to control the bank¶s
operations. Since the privatization of the bank, MCB has implement different policies to make it
one of the best banks of Pakistan, which included introducing new products and services and
increase its operations by opening new branches in Pakistan.
I did my six weeks internship at c /
0"c #c  1#, and worked in account
opening department, operations department, accounts department, Remmittance, Customer
Service department and clearing department.
Some of the work that I did in these departments included collecting cheques, filling account
opening forms, activity checking and stop payments and closing of accounts.
Although there were no such big problems found in the working of MCB, there were some
problems in training of the employees, incentive schemes and product innovation.
Some of the recommendations include workshops for employees, job rotation, teams work to
find innovative products and scholarship programs for employees.
Lastly MCB has seen a rapid growth in its activities by introducing a range of products and
services and showing its presence in the country by opening new branches and in future should
keep this momentum and always strive to become the best.
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Chapter one is about introduction of report. As a part of requirement of BBA degree six week
internship is necessary for student. This chapter includes background, purpose, scope,
objectives and methodology of the study. It also include introduction of organization.

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Internship training program during Becholars in Business administration Program is

necessary for the partial fulfillment of the completion of Degree of Master in Business
Administration as per HEC ( Hire education commission ) requirement. It is necessary for me
to complete an internship session of about 6 weeks in some manufacturing or service industry
relevant to my area of interest and specialization. So, I choose the Banking field because
I have the interest in this sector.
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Internship is the capstone experience that provides me with hands-on, real-world
experience in a work setting. Ideally, internship will enable internees to:
*c 'se my knowledge and skills get from the classroom,
*c Discover where further competence is needed,
*c Convert the bookish knowledge into practical life, and
*c become better acquainted with the types of work settings in which such Competence
can be applied.
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This study will facilitate to me regarding the working of Banking sector of Pakistan because
most of the teachers during their lectures use the examples of Banks like MCB, National
Bank, 'BL, Bank Alfalfa and many others, Students should study about the functioning of
such Banks. It will help full for me in future.

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T he study is done with the sole purpose of doing the best work but there were certain
limitation faced during the internship period. The most important limitation from which
the study suffers is the non-availability of information in a manner required for analysis
and the secrecy of the bank. Another important limitation of the study is time and space
constraint.

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I worked as an internee in MCB gujranwala road branch, Hafizabad. The main objectives to
study in MCB were:

*c To get some experience in working with well reputed organization.

*c To gain knowledge about the professional environment of the bank.
*c To know about the technology utilized in the banks.
*c To deal and manage with the situation of stress.

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 c cc5  %# MCB Bank is not
an overnight success story. It was incorporated by the Adamjee Group on July 9, 1947, under the
Indian Companies Act, VII of 1913 as a limited company. The bank was established with a view
to provide banking facilities to the business community of the South Asia

After the partition of the Indo-Pak subcontinent, the bank moved to Dhaka (then the capital of
former East Pakistan) from where it commenced business in August 1948. In 1956, the bank
transferred its registered office to Karachi, Where the head office is presently located. Thus, the
bank inherits a 59 years legacy of trust of its customers and the citizens of Pakistanã
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In January 1974, the Government of Pakistan nationalized MCB following the Banks
(Nationalization) Act 1974. MCB was the only bank which was nationalized solely as neither it
nor any other bank being merged with it due to its consistent and firm policies and its sound
position.
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A wave of economic reforms swept Pakistan in the lattes introducing the Need for privatization
of state owned banks and companies. This was the first bank to be privatized in 1991 and the
bank was purchased by a consortium of Pakistani corporate groups led by Nishat Group. Nishat
Group is one of the leading and most diversified business groups in Pakistan. The group has
strong presence in the most important business sectors of the country such as banking, textile,
cement and insurance.

6
Mian Mohammad Mansha is the Chairman of the group (and also MCB) and has played
instrumental role in its success. In recognition of Mr. Mansha¶s contribution, the Government of
Pakistan has conferred him with "Sitara-e-Imtiaz", one of the most prestigious civil awards of the
country.

2,2c
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Over the years MCB has developed strong relationships with its customers by understanding
their needs and treating them with respect, dignity and importance. The driving force behind its
commitment and services is its focus on customers ensuring that it not only meets, but also
exceeds their expectation.

They strive to achieve excellence by ensuring that every moment of their time is spent in adding
value, making sure that they do things right, first time, and every time. With the quest of quality
MCB has always taken initiatives bringing banking into a new arena; from cash to the
convenience of plastic; from branch banking to internet banking and from face to face customer
interaction to online accessibility.

MCB now focuses on three core businesses namely Corporate, Commercial and Consumer
Banking. Corporate clientele includes public sector companies as well as large local and multi
national concerns. MCB is also catering to the growing middle class by providing new asset and
liability products. c c 5  %#c (Formerly Muslim Commercial Bank Limited) has a
solid foundation of over 63 years in Pakistan, the Bank provides 24 hour banking convenience
with a network of over 1000 branches, the largest ATM network in Pakistan over 450 ATM
locations in the market.

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To be the leading financial services provider, partnering with our customers for a more
prosperous and secure future.

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We are a team of committed professionals, providing innovative and efficient financial solutions
to create and nurture long-term relationships with our customers. In doing so, we ensure that our
shareholders can invest with confidence in us.

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§c Providing innovative
§c Efficient financial solutions
§c Long-term relationships with our customers
§c Shareholders invest with confidence

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Miss. Sadia Akbar (Operation manager)

This section is based on my observation and experience and rotation during my internship at the
gujranwala road Branch of MCB Limited. Some of the jobs that I performed or assisted in
performing or overlooked in the various departments were

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Following are the types of account in MCB

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*c No restriction on Withdrawals and frequency of transactions

*c No profit is paid on Current Accounts

*c Service Charges are recovered as specified in the Schedule of Charges

*c No Zakat is to be deducted on Current Accounts.

*c Free of cost account statements are dispatched on half yearly basis within one week after
the mid-year closing. If any customer wishes to receive the account statement other than
the half yearly cycle, charges will be recovered as per the Schedule of Bank Charges
RS.50

*c Account opening with Rs.1000

*c Minimum maintain balance Rs.10000 if less then minimum limit Rs.50 will deduct

9
„




§c Individuals (Single/Joint)

§c Firms (Sole Proprietor Partnership)

§c Companies (Public and Private Limited), Trust/ Clubs/ Societies and Associations are
eligible to open Current Accounts.

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6
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c

c
To provide banking facilities to low income people without the restriction to maintain minimum
balance requirement


 
*c The account is opened with a minimum initial deposit of Rs.1000.

*c BBA is a Rupee Current Account (non-remunerative account).

*c There is no minimum balance requirement, and hence no monthly account maintenance

charges apply.

*c In case where balance in BBA remains ³ZERO´ for a continuous 06 month period, the
account will be closed automatically.

*c Each month the account holder is allowed 02 deposits transactions (either cash or
clearing) and 02 withdrawals (cash or clearing). All customer initiated transactions over
and above this limit will be charged Rs. 25 per transaction

10
 *c All ATM transactions conducted through electronic channels (i.e. ATM, Debit Card POS
machine, Virtual Banking) are exempted of transaction fee. Hence the customer is
allowed unlimited transactions through these channels.

*c ATM cards are issued to all BBA account holders in on-line branches. Card issuance and
annual fee will be recovered as per Schedule of Bank Charges.

*c ATM transaction charges on balance enquiry / mini statement and on usage of non-MCB
ATM¶s will apply as per Schedule of Bank Charges.

*c Statement of account to be mailed as per existing policy of the Bank. Charges for
duplicate statement will apply as per Schedule of Bank Charges.

„





§c Low income individuals are eligible for opening BBA with single or joint account
type.

§c Existing individual account holders can also convert their regular Savings or current
account into Basic Banking Account.

§c This facility is not offered to non-individuals

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11
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*c The minimum amount to be placed under this product is 'SD 100, 00.

*c Complimentary Pak Rupee account without minimum balance requirement.

*c Free Lockers Facility

*c Free of Charge Bank Statement & Smart Cards

*c Discount ('p to 50%) on processing charges of Personal Loans & Car Financing.

*c Preferential rates on consumer loans.

*c Waiver on collection charges for crediting the amount in Foreign Currency.

*c No Charges on Standing Instructions.

*c In case of any change in the above features, prescribed procedure by RBG will be
applicable.

„





Individuals (Single & Joint), Firms, Companies.

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12
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Enjoy the confidence of operating an international account, locally,c
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MCB Foreign Currency Account offers you the option of earning attractive returns on your
Foreign Currency Investment.
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*c Open your account in 'S Dollar, 'K Pound Sterling, or Euro.

*c Open for as little as 'S$ 500 or equivalent.

*c 'nlimited transactions at your branch.

*c Free Foreign Currency cash deposit and withdrawal facility.

*c Rate of Return directly linked with international market

*c Profit paid into your account every six months.

*c Foreign Remittances facility available.

*c Countrywide network of Foreign Currency Branches.

*c Cash withdrawal in PKR equivalent

*c Network of over a thousand branches, and hundreds of online branches, at convenient

locations.

13
 *c General Inquiry e.g. ATM Locations, Product Information etc.

*c Financial Services e.g. Account Balance Inquiry, Debit Card, Transaction detail, bill
payments etc
*c Non-financial Services e.g. Internet Banking activation etc.

*c Bank Account Statement and Cheque Book Request.c

„





Only Individuals (Single and Joint) are eligible to open PLS Savings Accounts.

,,4c c8
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c

*c Offers the opportunity to small and medium sized depositors (individuals only) to earn
attractive returns on their deposits. Cash withdrawals takes place only through
ATM/POS.

*c Individuals can open an account with a minimum initial deposit of Rs. 1,000.

*c Profit is calculated on a monthly basis and credited to the account after each calendar
quarter

*c All ATM transactions conducted through electronic channels (i.e. ATM, Debit Card POS
machine, Virtual Banking) are exempted of transaction fees. The customer is allowed
unlimited transactions up to available balance in the account through these channels.

*c The profit is calculated only on minimum deposit balance between Rs. 10,000/- and Rs.
300,000/- during a month, irrespective of the balance available in the account (as per
prescribed slabs). This range can be changed by the Bank any time without giving prior
notice to the customer (as and when required).

14
 *c Profit is calculated monthly, based on the minimum balance of the account during the
month. In case minimum balance exceeds the ceiling of Rs. 300,000/- in a month, profit
would only be paid on Rs. 300,000/-

*c MCB Smart Savings account can be merged with the regular PLS Savings account any
time by giving 3 months notice to the customers at the discretion of the Bank.

*c The profit rates are estimated/provisional and subject to change any time at the discretion
of the Bank.

*c Service charges would be applicable as per Bank policy if the balance goes down below
the prescribed minimum balance.

*c Cheque book would not be issued to the account holder. ATM Card would be issued to
the customer for cash withdrawals.

*c A customer can open only one MCB Smart Savings Account in the Bank, in case a
customer is found to have more than one Smart Savings Account, the Bank reserves the
right not to give the profit or recover profit if already paid to the customer on their
account/s.

*c Zakat is deducted as per the policy. Withholding Tax is also deducted from profit (where
applicable) as per Income Tax Laws.

c
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15
 %c
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Profit will be calculated on a monthly basis, based on the minimum balance maintained by the
customer during that month.

„




§c Only Individuals (Single or Joint) are eligible to open PLS Smart Savings Account.

,,!c6*5 cc*


Provides additional facilities for payment of 'tility Bills and Loan Installment of HBFC through
debit of Account (free of charge) with added feature of profit calculation at average daily
balance. (At designated branches only
*c Minimum balance requirement as specified in the Schedule of Bank Charges.Rs.20,000

*c Profit provisioning/ accruals are made on Daily Closing Balance of the day.

*c Profit is disbursed /paid on half yearly basis as per the rates notified by the bank.

*c Free of cost Account Statement is dispatched on half yearly basis.

*c Zakat is deducted as per the Government¶s and Zakat 'shr Directives. Zakat is not
deducted on the accounts of Non- Muslims and where Affidavit is provided.

*c Withholding Tax is deducted on Profit as per the Government¶s policy.

c
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16
 ,,c5c8
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PLS Savings 365 also falls under the category of Savings Deposit Scheme.

*c It is a checking account and there is no restriction on number of withdrawals and deposits

transactions.

*c Account is opened with minimum deposit of Rs.300,000/-

*c Profit is calculated on daily product basis on the balance of Rs.300,000/- and above.
However, if balances in the account fall below Rs.300,000/- on any day, the product will
be considered as well and the profit will be paid as per the rates notified by the Bank on
half yearly basis.

*c All other terms and conditions including rates of profit, Zakat and Withholding tax
applicable to PLS Savings Bank Accounts are applicable.

„





All types of customers are allowed to open PLS- 365 accounts except Development Financial
Institution.

c
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17
c
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MCB Business Account lets you build your business through the accrued savings from
discounted transaction fees, and more.c
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*c Higher the balance the higher the number of free transactions.

*c Open a Business Account with Rs.50, 000 only.

*c 'nlimited free cash deposit and withdrawal facility at hundreds of branches nationwide.

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When you maintain average monthly balance of Rs.100, 000 or above

*c Demand Drafts/Pay Orders.

*c Cancellation for Demand Drafts/Pay Orders.

*c Cheque Book.

*c International ATM Gold Card.

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18
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The Special Rupee Term Deposit is governed under the PLS rules, but offers the depositor a
stable rate of return for a fixed maturity. It is a mandatory requirement for booking a Term
Deposit to have a checking account (Current/Savings) in the Bank.

Product is available in the following tenors:

3 months, 6 months, 1 year, 3 years & 5 years

The minimum amount to be placed under this scheme is Rs.1000, 000/- (amounts can be booked
in multiples of Rs.1000).

Each tenor is divided into 3 categories based on the deposit amount.

(c Rs.1,000,000 to less than Rs.10,000,000
(c Rs.10,000,000 to less than Rs.25,000,000
(c Rs.25,000,000 and abovec
7%c
Zakat is deducted as per the rules of Zakat & 'shr Committee (as advised and amended from
time to time)
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19
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*c Profit amount will be credited into the depositor¶s linked/ specified current or Savings
account.

*c Cash payment of profit amount will not be allowed.

*c Branch is required to maintain maturity date and profit payment dates for each account so
that there is no delay in payment of profit to the depositor.

„




(Existing Account Holders) Individuals, Firms and Companies

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*c The minimum amount to be placed under this product is 'SD $ 10,000.

*c Interest rates are offered based on the amount of deposit.
*c Free Lockers Facility
*c Free of Charge Bank Statement & Smart Cards
*c Discount ('p to 50%) on processing charges of Personal Loans & Car Financing.
*c Preferential rates on consumer loans.
*c Interest on the smart foreign currency fixed deposits is paid on the date of maturity of
deposit for 3 and 6 months tenor. Deposits booked for 1 year is paid interest on a half
yearly basis.
*c Cash payment of Interest amount is not allowed.
*c Minimum retention period is 01 month, irrespective of the tenor for which the deposit is
booked. In case depositor wishes to encash the deposit before completion of one month,

20
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The details of Account Opening Application, Specimen Signature Cards and other Documents to
be obtained for different types of accounts are as follows:

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1.c Application for Opening Account
2.c Specimen Signature Card
3.c Attested photocopy of Computerized National Identity Card (CNIC) or Passport. It is a
mandatory requirement to verify the CNIC of the customer before opening the accounts,
from NADRA Online system- VERISYS
4.c In case of a salaried person, attested copy of his/her service card or any other acceptable
evidence of service, including but not limited to a certificate from the employer.
5.c In case of illiterate person, a passport size photograph of the new account holder besides
taking left & right thumb impressions on the Account Opening Form & Specimen
Signature Card
6.c In case CNIC does not contain a photograph, Banks may allow the said customer to open
the account, subject to provision of the following documents:

7.c A copy of the photograph duly attested by gazette officer/Nazim.

8.c A copy of CNIC without photograph duly attested by the same person who has attested
the photograph as per above.
9.c A confirmation in writing to the effect that they have no other document bearing their
photograph.
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21
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1.c Application for Opening Account

2.c Specimen Signature Card
3.c Attested photocopies of Computerized National Identity Card (CNIC) of all partners.
4.c Attested copy of ³Partnership Deed´ or ³Letter of Partnership, in lieu of the partnership
deed, if not available) duly signed by all partners of the firm.
5.c Attested copy of Registration Certificate with Registrar of Firms. In case the partnership
is unregistered, this fact should be clearly mentioned on the Account Opening Form.
6.c Authority letter in original, in favor of the person authorized to operate on the account of
the firm.

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Copies of the following documents duly certified by the authorized officer of the:

1.c Resolution of Board of Directors for opening of account specifying the person(s)
authorized to operate the company account.
2.c Memorandum and Articles of Association.
3.c Certificate of Incorporation.
4.c Certificate of Commencement of Business.
5.c Attested photocopies of Computerized National Identity Card (CNIC) of all the directors.
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22
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Certified copies of:

1.c Certificate of Registration issued by the Registrar of Cooperative Societies/ Registration
Authority.
2.c Bye-Laws/ Memorandum and Articles of Association of the Society containing official
seal of the Registration Authority.
3.c Permission of the registration authority for opening of Account in the name of
Association as required under section 37 (d) of Co-operative Societies Act, 1925.
4.c List of members of the Managing Committee duly certified by the Registrar of Societies.
5.c Resolution duly passed by the members of Managing Committee in their meeting
regarding opening and operation of account in the name of said Society. It must be
ensured that the mandate for operation of Account given in the Resolution is not in
violation of the provision of Bye-Laws/ Memorandum and Articles of Association.
6.c Attested copies of CNIC of the authorized officials/ persons.

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1.c Certified copy of ³Power of Attorney´

2.c Attested photocopy of Computerized National Identity Card (CNIC) of the agent.
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1.c Attested copy of Certificate of Registration

2.c Resolution duly passed by the Trustees regarding opening and operation of Account in
the Bank in the name of said Trust Deed.
3.c Attested copies of CNIC of all the trustees.
4.c Certified copies of Letter of Administration/ Instrument of Trust.

23
 , ,c c
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A Minor is a person who has not attained the age of 18 years, if the Court appoints guardian of
his/her person or property, then the period of his minority extends to the age of 21.

1.c An account in the name of minor is allowed to open by his guardian, preferably jointly in
the name of guardian / Minor or Minors, payable to either or survivor opener of the
Account.
2.c Title of Account is on the Minor¶s Name (As per Form ±B) &word ³Minor´ be added to
the Title of Account.
3.c In the Account Opening Application, the particulars of the Guardian will be filled out in
the column of ³Personal Information´.
4.c Attested copy of Computerized National Identity Card (CNIC) of the Guardian.
5.c Attested photocopy of Form-B of Minor.

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1.c Attested photocopy of Computerized National Identity Cards (CNIC).

2.c Two Attested Photographs. (One photograph shall be pasted on the Account Opening
Form and other will be pasted on Specimen Signature Card.
,c Left thumb impression (Right thumb impression in case of female) on the account
opening application & Specimen Signature Card (SSC)c
c
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24
c
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. Customer comes into the branch and requests for opening an account.
c
2, Customer Services Officer (CSO): delivers the Account Opening Application along with the
terms and Conditions) and relevant documents to the customer.
c
, Customer: receives the Account Opening Form (AOF) from CSO and submits duly completed
AOF and relevant documents to the CSO.
c
3, CSO: checks that all the fields in the Account Opening Form have been duly filled, and the
relevant account documentation required from the customer depending on the type of account are
completed and attached.

*c Account Opening Form (AOF)

*c Specimen Signature Card (SSC)

*c Account Terms & Conditions acknowledgement

*c Attested copy of CNIC

*c Copy of employment or student Card & other verification documents as required on case-
to-case basis.

25
Obtain customer¶s signatures on the AOF and SS Card (in person). Moreover one signature card
will be used to capture per signature of the client (In case of Joint Account Holders use
additional signature card). Subsequently takes the form to the Relationship and Operations
Manager for Verification and authorization.
c
4, Operations Manager/ Account Maintenance Officer (AMO):
Verifies introducer¶s signature from Branch Teller Module > Transactions > Non- Financial
Transactions > Customer Signatory (Screen # BT44).

*c Sign-off and affix stamp on the Account Application.

*c Forwards AOF & Client Profile Form to Relationship Manager.

c
!, Relationship/ Branch Manager

*c Interviews the customer.

*c Completes and sign off Know Your Customer (KYC)/ Client Profile Form.
*c Returns the same to the CSO for further processing.c
c
, Customer Services Officer (CSO):
Selects SYMBOLS Branch Teller Module > Transaction > Non-Financial Transaction > Client
Definition (Screen # BT41) to create a client.

*c Insert Client Short Name. This is used as the default Title of Account whenever an
account is opened.
*c Input Client full Name. Pop-up box will appear on the screen: Input or select appropriate
ID Type & insert CNIC number & press OK. (Box will close automatically)
*c Insert Country Code, State, Country of Citizen, Country of Risk.
*c In the next section of the same screen, insert Client Indicator as ³N´ Normal, ³S´ Staff
and/or ³V´ VIP Account.

26
 *c Input address as written in Account Opening Application- SF-1AA.
*c Select Account Executive & Client Type then press F-10 or click save icon available on
Tool Bar.

System generates the client number and Pop-up box appear on the screen with the following
message:
p*;*55<c
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, Customer: Counts the cash and leaves the branch.

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Cheque book is a safe custody instrument. Cheque is used for cash withdrawal and making
payments. Cheque books are relatively sensitive items hence due care must be exercised while
handling them.


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MF-80R is used for cheque book issuance to the New Account Holders as well as the exiting c

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27
 c
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This covers the services and products that Bank offers to its customers for Funds Transfer.
Currently Bank is offering following Products & Services for Fund Transfer: (Locally &
Internationally).
*c Payment Order
*c Demand Draft (Local & Foreign Currency)
*c Telegraphic Transfer (Local & Foreign Currency)
*c Mail Transfer (Local Currency)

%c But here now a day the time of online transfer so TT (Telegraphic Transfer ) and MT(
Mail Transfer) not in practically use because people like online quick and safe transfer of amount
even DD ( Demand Draft ) and PO ( Pay Order ) use for documentary prove c
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*c Demand Draft is a written order.
*c Drawn by one branch of a Bank upon another branch of the same Bank, or upon other
Bank to pay a certain sum of money to or to the order of a specified person. It is issued
by one branch of a bank and payable by another branch of the same bank or another bank
*c Demand Draft is a negotiable instrument.
*c Demand Draft is neither issued payable to bearer nor drawn on branches situated within
the same city.
*c Legal provisions as to crossing, endorsement, collection and payment in due course are
similar to those as for cheques and other negotiable instruments.
*c It is to be ensured that the purchaser of Demand Draft is able to at least sign his name.

28
*c Thumb impression is not to be accepted on Funds Transfer Application except in cases
where purchaser is maintaining an account with the issuing branch. c
c
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c
1. Purchaser: Is the person, firm, company or local authority.
2. Issuing or Drawing Branch: The Branch which issues a Draft on another Branch.
3. Drawee Branch: Is the Branch on which a draft is drawn.
4. Payee / Beneficiary

Draft
Remitter Beneficiary

Fund
received

Draft

Advice
Issuing Branch Drawee Branch

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When Demand Draft is presented at the counter of a Drawee branch for cash payment,
identification of a payee is required. If a payee is the customer of a branch, his signature can be
verified from the specimen signatures on the record.

A Crossed DD cannot be paid in cash, except to a banker who collects the same for credit to his
customer¶s account. As such, a crossed DD cannot be presented by the Payee for Cash payment
at the counter.
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Payment of Demand Drafts can also be made in Transfer/ Clearing. A complete procedure for
collection / payment has been explained in the section of Cash and Counter Services (Inward
Clearing
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Since DD is payable within six months from the date of its issue, therefore, an instrument being
older than six months requires revalidation before payment.

Following procedure will be used:

*c The signature on such letter should be duly verified.

*c DD should be presented to the Issuing branch.
*c Particulars of the DD should be compared with those given in the RSBS or Branch Teller
Module.
A rubber stamp reading ³Revalidated on --------´ should be affixed on the DD under signature of
two authorized officers of the branch with IBS or AS Numbers.

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Payment Order is used for making payments within a city. Literal definition of Payment Order is
as follows:

³A Pay Order is a written authorization for payment, made in a cheque form issued and payable
by the bank, to the person named and addressed therein on his giving a proper discharge
thereon´.

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*c It is issued by and drawn upon and payable by the same branch of the bank
*c It is neither transferable nor negotiable and as such it is payable to the payee named
therein
*c It is in a receipt from and therefore is payable only after obtaining a discharge of the
payee on adequate revenue stamp
*c Pay Order cannot be issued to a minor
*c Pay Order meant for bank¶s own payment but in practice these are also issued to
customers for making payment.
*c Pay Order is issued for payments within the same city

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*c It is issued by and drawn upon and payable by the same branch of the Bank.
*c It is neither transferable nor negotiable and as such it is payable to the payee named
therein.

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& Purchaser is a person, firm, company, Government/Semi Government Organization
or local authority.


$A' $c& These issues/pays on presentation of the instrument.
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'cPayee is the person named on a bill to whom, or to whose order, payment is to be made.
Where a bill is not payable to bearer, the payee must be named or otherwise indicated therein
with reasonable certainly.

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Term Deposit Receipt is basically used for the saving purpose, and it is also use for transfer
purpose, which means amount moves from one account to another account, in term deposit
receipt specific time period is mentioned and during this particular period no one can withdraw
this amount from his account, so when we talk about some specific time period it may be three
months, six months three years etc basically it depends open on customer according to his desire
I made this Term deposit receipt. Term Deposit Receipt is basically a profit oriented instrument,
because customer deposits his money for specific period of time and on behalf of this bank will
pay some percentage of profit which depends upon the amount of deposit higher the deposit
higher will be the percentage of profit.
Basically TDR is profit oriented instrument so that¶s why zakat is also applicable on it, no
commission is charged on this term deposit receipt.
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First of all receive the request letter from customer on (S.F 265)
Also receive the cheque which is transfer from cheque to TDR.
The client can also made his TDR by depositing cash but his account must be opened in our
branch which is necessary because TDR payment is made only through account no counter
payment is made on behalf of this TDR.
Fills the TDR block and write down the complete information on it.

*c Date of issued TDR

*c Received from
*c On Account of
*c Amount in wards and Amount in Figures
*c Than send this TDR for signature one from the Accountant and one from the Manager.
*c Taking all this information in to the TDR register that is TDR
*c Serial number 58/15
*c Customer name
*c Account number
*c Issued date
*c Expiry of this TDR
*c Deposit Receipt which is TDR block Number

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The payment procedure of TDR is only made through account no counter payment is made for
this Term Deposit Receipt. Customer transfer this TDR at the expiry of this TDR in to his own
account and than present a cheque and mention the required amount which he wants to withdraw.
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Because TDR is profit oriented instrument so that¶s why zakat is applicable on it,

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CDR is just like a hard cash, basically CDR is used for transfer purpose means amount transfer
from one account to another account, CDR is used for Bidding purpose or some time government
introduces different housing scheme and here he mentioned that you must submit the CDR
instead if net cash

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Receive the request letter from customer and also receive the cheque and verify this cheque
weather this post dated, stale cheque or not and also check the sign verification of this customer
which is mentioned on this cheque and compare with signature card which is scanned in
computer.

Than send this cheque for posting here and see that is it enough amount in his account which he
written down on this cheque, if yes than further processing.

Fills the CDR block and write down the following information on it

*c Issue date of this CDR

*c In favor of
*c On account of
*c Amount in wards
*c Amount in figures
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 *c CDR serial number i.e. 58/07
*c Than take the signature, account number his contact number at the back side of
the copy which we kept as record
*c Paste stamps on this cheque that is Branch crossing stamp
*c Transfer stamp on this cheque
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Bank charge Rupees 50/- per CDR

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The customer whose name, account number is mentioned on this CDR he is only person who can
take this amount through his account not in counter payment. Basically CDR is mostly used for
transfer purpose that¶s why his payment is made only through account.

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³Fund transfer between two banks and branches is called clearing´
There are two types of clearing
*c Outward clearing
*c Inward clearing

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³Outward clearing is to send the cheques to other branch´
There are three types of outward clearing
1.c Same day clearing
2.c Normal clearing
3.c Inter city clearing

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In same day clearing send the cheque in the morning and receive the payment in the evening,
There are two conditions in the same day clearing
(c Cheque will be 500000 or above
(c Member of the same day

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In normal clearing send the cheque today and receive the payment next day. No condition will
impose in normal clearing like same day clearing.
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Clearing between two cities is called intercity clearing. In inter city clearing cheque will clear in
two or three days.
To understand the process of clearing we first need to understand and comprehend the workings
and the purpose of the state banks institution called NIFT.

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In the morning time I am received the in ward clearing from the NIFT employee and then I count
the instruments which I received and match with the summery which is also attached with these
instruments. Than give these instruments to the computer operator who posts these instruments,
after posting all these instruments then he again give me the instruments and I enter all these
instruments into the clearing sheet in his Debit side.c
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Also prepare the Memo on in which the details of objections are given that for purpose we return
this instrument, and charge RS 200/- per instrument

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Difference voucher means the difference between the Out ward Clearing and In Ward Clearing.
If the liabilities are outstanding on our side which means that our branch will pay this difference
amount than I will prepare the H-O Credit Voucher, and if the Liabilities are outstanding on
there side which means that now we are receiving the difference amount so I will prepare the H-
O Debit Voucher.
*c If liabilities are outstanding on our side than made Credit voucher
*c If liabilities are outstanding are on there side than made Debit Voucher

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When the account holder of our bank receives payment from any other party in the form of
cheque, and that cheque is not of our bank or branch, and our account holder deposits it in his
MCB account then that cheque has to pass from the process of outward clearing.

All the cheques deposited in one day of other banks are then again sent through the NIFT to the
SBP which sends them to the head offices of their respective banks which through NIFT sends
the instruments to the respective branches from which they were issued. This process of outward
clearing is exactly opposite to the process of inward clearing which I explained in detail before.
This process of outward clearing is also of three days.

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First of all receive the instrument from different customers which they present on our branch.

*c Separate these instruments with in city clearing wise and inter city wise.
*c Giving the receiving slip to the customers.
*c Write Down the detail of these entire instruments which I received from customer in to
the Clearing Register.
*c Paste the Cross Stamp and clearing stamp at the front of these instruments Face.
*c Paste the Payees Account Credited stamp at the back of these instruments.

*c Calculate the amount of all these instruments

*c Prepare the delivery summery report
*c Prepare the Clearing Bundle Cover
*c Also prepare the Add List

After each and every thing is completed now put all these instruments into the NIFT bag and
closed this bag with seal. Than the third copy of delivery summery along with deposit slips keeps
in our custody, and then enter all these vouchers in to the clearing sheet in his Credit side so this
is the complete procedure of out ward clearing.

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There is the new concept of clearing which is named as inter city clearing. State Bank of
Pakistan now revises his policies and introduces this concept, because before this action if any
instrument which is belong to out of city, so in order to clear this instrument we sent this cheque
through CC Cheque Collection. 'nder cheque collection procedure it took five to six days which
time taking even though the CC procedure is not yet finished but minimum up to the certain
extent. Now in most of the big cities inter city Clearing performing his job instead of CC, with
the help of inter city clearing time duration is definitely minimum.

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*c Dressing (Suiting)
*c Regularity
*c Punctuality
*c Account Opening
*c Interaction with peoples & professional
*c Issuance of Cheque Book
*c Remittance
*c Clearing
*c Counter services
*c Facing stress environment

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With Cooperation of all branch members, I have been able to learn and experience many new
things related to the banking sector and the banks workings. I am able to handle the public with
respect to many different workings on many different instances and also in account opening for
customers and can handle many other tasks as well.
Finally I concluded that MCB is a good organization for a person for his long term career
workings. Overall working and environment of the bank is very comfortable and the staff is very
helpful and respectful of each other and it still maintains a professional environment.
Management of the bank is very strong.

Employees of MCB Gujranwala road branch work more than their working hours and all the
workings take place in a very friendly atmosphere that does not induce pressure on the person
working there. It also shows their loyalty and commitment to the organization. This branch of
MCB relatively small and has climbed its way up very quickly and all that only because of the
employee¶s efforts and consideration for each other

'nderstanding and the effective management of the human resources is the most difficult
challenge faced not only by the bank but by all the organizations. Even though the people have
been sacrificed in the new organizational developments, it is becoming clear that the true lasting
competitive advantage comes through human resources and how they are managed. MCB seems
to not focusing on this highly critical issue as the job satisfaction level of the employees working
at MCB, was quite low.

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After doing a deep study and witnessing everything that goes on in a branch, I would then like to
make the recommendations that;
First of all, the management needs to overlook the major problems that the organization is
currently facing and then develop strategies to eradicate them. Some of the suggestions that I
would like to give at the end are:

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MCB Bank can improve its Marketing strategies to acquire more promotion and mass media
publicity by the use of effective channels of promotions like TV, Newspaper Advertisements. It
can also improve its magazine publication that it releases each month.

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In order to compete in the ever-expanding market both nationally and internationally,
introducing new and efficient products is one of its major requirements.

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Centralized Structure that enables employee involvement needs to be formed.

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Better reward system is one of the most important requirements in order to reduce the problem of
Employee retention and improve Employee motivation.

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(c Creation of enhanced performance appraisal system
(c Implementation of enhanced Marketing system
(c Continuous lecture on better communication of staff with customers

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ATM machine must be maintained properly to make it more convenient for the customers and to
decrease the load of work to the employees of the bank especially in the salary days.

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I have observe during working that there need of more staff due to pressure of work MCB should
hire more employees for better performance even any employee when take leaves Manager has
no choice to his work to other employee so this situation built high pressure.

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To make the SYMBOL system more efficient and make sure its connectivity all the time in order
to provides more convenience to customers.

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MCB should to make the strategy where make the job rotation of employees

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 Muslim Commercial Bank
 Automatic Teller Machine
;: Federal Excise Duty
D with Holding Tax
: Term Deposit Receipts
: Call Deposit Receipts
 Personal Banking Advisor
 Basic Banking Account
5 Profit and Loss A/C
: Term Deposit
;c Account opening Foam
  Account maintenance officer
6< Know your customers
 Specimen Signature card
/ General banking officer
 Internal control officer
 Customer service officer
:: Demand Draft
 Pay Order
; Fund Transfer Application
: Central Processing Division

; National Institute of Facilitation Technology
: Term Deposit Receipt
c Rupee Travel Cheque
c Inward Bills for Collectio

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BOM (Miss.Sadia Akbar)
CSO (Miss.Maria )
Remittance (Miss.Sadia Akbar

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