CRITICAL DIFFERENCES - TWO MEN & THREE MEN BRANCHES

With a focus on expansion of HDFC Bank’s branch network, we have been opening branches at
locations with population below 50.000. These branches are being set up under 2 men and 3
men models as compared to other branches which have a staffing of 4 men and above.
The comparative chart below highlights the primary differences in processes that have been
laid down to strike a balance between the business opportunities offered at these smaller
locations and the regulatory framework including RBI regulations and internal audit guidelines
with respect to operational risk management.

Comparison

S.No Description 2 Men branch 3 Men branch Other branches

Weekdays - 4 hours Weekdays - 4 hours Weekdays - 6 hours

Branch
1
Timings
Saturday – 3 hours Saturday – 3 hours Saturday – 3 hours

2 Saturday off Not applicable Not applicable Applicable

BM cum PBA/TA, PB
BM cum PBA/TA and BM, PBA/TA, PB
3 Staffing Sales cum WD and
Teller cum WD/PB Sales Sales, WD and Teller
Teller

Security Yes – during day No – Yes – both day and

4 No
guards during night night

2 sets carried by Branch
staff after locking the
5 Branch Keys
branch. Third set lodged
with the Hub Branch
BM to decide which 2
staff will carry the
branch keys based on Branch locked by
place of residence. security guard
Third set lodged with
the Hub Branch

6 Lockers No No Generally provided

Sr No Process 2 Men branch 3 Men branch Other branches
Due to staff leave there Due to staff leave there
is a possibility that the is a possibility that the
replacement from a Hub replacement from a
branch may have Hub branch may have
handled the other key handled the other key
set at another point of set at another point of Chinese wall
FRFC / Vault time. This overlap in key time. This overlap in concept is followed
7
keys holding is to be key holding is to be strictly. No overlap
approved by the Hub approved by the Hub of keys permitted
branch BM and the branch BM and the
Cluster Head. However Cluster Head. However
at no point of time can at no point of time can
one staff hold both one staff hold both
keys. keys.
Due to staff leave there
Due to staff leave there
is a possibility that the
is a possibility that the
replacement staff from
replacement staff from a
a Hub branch taking
Hub branch taking over
over an inputters id
an inputters id and
and password, may
password, may have
have handled the
handled the authoriser’s
authoriser’s id and Password handovers
id and password at
password at another only in exceptional
another point in time.
8 Passwords point in time. This situations which are
This overlap in password
overlap in password intimated to audit
handling is to be
handling is to be alert monitoring
approved by the Hub
approved by the Hub
branch BM and Cluster
branch BM and Cluster
Head. However at no
Head. However at no
point of time can one
point of time can one
staff hold both inputter
staff hold both
and authorizer
inputter and
passwords
authorizer passwords
Account branch selected
Account
as the 2 men branch and Forms input in CRM Forms input in CRM
opening
source branch selected next and dispatched next and dispatched
9 forms
as the HUB branch and from the 3 men branch from to mapped
routing in
form input in status itself to mapped CPU CPU
CRM next
‘Received at Branch’
Sr No Process 2 Men branch 3 Men branch Other branches

Cash holding vault limit

Cash holding vault limit -
- Rs. 5 lacs. Excess cash Vault limits fixed
Rs. 5 lacs. The excess
upto Rs. 2 lacs to be based on proximity
Vault cash cash above Rs.2 lacs may
10 carried by any two to currency chest
limits be moved periodically to
branch staff to the Hub and cash movement
the Hub branch via
branch using personal done by CIT agency
currency chest / vans.
vehicle

EOD cash position to

be checked and signed
EOD cash position to be by both custodians. BM Vault custodians
checked and signed by / Auth to verify the tally cash daily and
Verification both custodians. cash daily. Monthly BM does a surprise
11
of cash Fortnightly surprise surprise verification is verification of the
verification is to be done to be done by the HUB cash atleast once a
by the HUB BM. BM / specially month
appointed Operations
Manager

NEFT – allowed from

branch
NEFT – allowed from
RTGS – allowed for any
branch
amount subject to
RTGS – allowed upto Rs NEFT – allowed from
NEFT / availability of two
5 lacs. > Rs. 5 lacs RTGS branch
12 RTGS authorisers. In case of
routed to Hub branch RTGS – allowed from
processing staff absence RTGS > 5
through scan / fax branch
lacs to be routed to
process as per Annexure
Hub branch through
1
scan / fax process as
per Annexure 1

Teller to have min “C”

Teller to have min “C”
category signature and Due to multiple staff
category signature and
DD / MC the PBA cum BM min different signature
13 the PBA cum BM min
issuance “B” category. Hence categories like D, C
“B” category. Hence any
any limit of DD can be and B may be given
limit of DD can be signed
signed
Sr No Process 2 Men branch 3 Men branch Other branches

Deliverables kept in the Deliverables kept in

FRFC and handled by the FRFC and handled
Teller. PINs will be in a by PD WD. PINs will be
separate steel box kept in a separate steel box
Deliverables
in the FRFC and the key kept in the FRFC and
generally held by the
would be with the Auth the key would be with
Welcome desk and
/ BM. Daily tally of the Teller. Daily tally of
14 Deliverables PINs by the PB Auth.
deliverables will be done deliverables will be
Surprise verification
by the Auth / BM and done by the Auth / BM
done monthly by the
monthly surprise and monthly surprise
same branch BM
verification by the Hub verification by the Hub
branch BM / specially branch BM / specially
appointed Operations appointed Operations
Manager Manager

BJR, Instrument report,

NEFT / RTGS reports
BJR, Instrument report, would be checked by BJR, Instrument
NEFT / RTGS reports the staff other than report, NEFT / RTGS
would be checked by the inputter / Auth. In case reports would be
Report
15 Auth, and would be of staff absence the checked by an
Checking
rechecked by a Staff of Auth will check the independent staff
the HUB branch during reports and the same other than the
weekly visits will be rechecked after inputter / Auth
the absent staff
resumes duty
 Annexure 1

Process at 2 / 3 men branch not having adequate staff to process RTGS > Rs 5 lakhs

i. Branch to fax or scan & send the RTGS request to the Hub branch. Intimate the BM through
email with a cc to Cluster Head (Email format appended at the end of the Annexure)
ii. In case of fax/scan RTGS request forwarded to nearest Hub branch, basic checking of the
customer details and UV verification of cheque will be conducted by concerned 2 / 3 men
branch
iii. It must be ensured that the status of the scanned/faxed transaction to the Hub branch is
obtained within 1 hour of scan/fax or well before same day cut-off time for RTGS.
iv. Original RTGS request form and cheque should be sent to the Hub branch alongwith printout
of mail sent by the 2 / 3 men branch. Copy of the same to be retained by the 2 / 3 men
branch. Branch to ensure that every request is updated either with UTR number
v. In case if fax or scanner is not available at 2 / 3 men branches then the customer to be
politely advised to visit the nearest retail branch for processing of the request.
 Email format

Subject line: RTGS request and reference number <branch name + date + serial number>

Dear Sir

An outgoing RTGS request of our client has been received at our end. We are not able to process
the transaction for the following reason: (Unavailability of second authorizer (for transactions
above Rs.5 lacs)

Therefore, request you to process the transaction basis fax / scanned image (attached in the
mail) from your branch and confirm the status. We confirm done the UV check and the signature
verification at our end.

Ref no for the transaction – “Br name” + date + Sr no

(for eg. Branch named NS Road sending fax/scan request for RTGS to nearest Retail or Hub
branch to mention the reference no as = NS Road – 5/Jul/11 – 1

Thanks

Name of the Sender:

Contact no:
 Fortnightly checks to be conducted by HUB branch

 Branch Manager of the HUB branch would ensure that a senior resource / specifically
appointed Operations Manager would conduct the checks on a fortnightly basis and report
the same to him/her and the Cluster Head for their review and necessary action.

 When a Staff from the HUB branch is deputed on account of replacement for the spoke staff
on leave, such deputation may be considered as verification done for that specific fortnight.
The deputed staff would conduct the necessary checks from the last visit till the previous day
of his/her deputation and the staff resuming from leave shall conduct the check for the
tenure of his/her leave.

 The checks would be documented and a report marked to the Branch Manager, Hub Branch
Manager and the Cluster Head for their review and necessary action.

Processes to be checked by the Hub branch / Operations Manager:

1. Check whether the process of UV verification of cheques is being carried out

2. Verify whether the mandatory daily EOD / BOD Reports are printed, checked and signed off
by the branch staff, evidencing reviewer name, employee code and review date on the
reports
3. Review & monitoring of Suspense and Dummy Accounts on daily basis by the branch staff.
4. Fortnightly reporting of Suspense accounts.
5. Verify whether the BJR is printed and signed off by both the branch staff. The visiting staff will
check the daily BJR with the vouchers from the last visit.
6. Effectively, this would mean during the visit of the visiting Staff, all vouchers will be checked
with the BJR and also check that all the mandatory reports are printed and signed off by the
branch Staff for the entire period effective from the last visit.
7. Check for leave updation, exchange of passwords/ keys with updation on the key register.
8. Vault & counter cash verification.
9. Review of ATM cash & balancing process to be verified.
10.Check the daily tallying of Deliverables by the spoke branch custodians and sign off checking
the same.
11.Dual destruction of deliverables
12.Tatkal reconciliation.
13.Review of CH318 report (daily TOD monitoring)
14.Review the CH118 report for any TOD outstanding and ascertain the reasons for the
pendency.
15.Review of Complaint Management
16.Check the Stop Payment / Hot listing reports
17.Check the Handover / Takeover of passwords/ Key register
18.Check the Stock / Stationery
19.Check for pending updation and review of Welcome calling 126A online portal
20.Check for pending updation and review of LTR CH106 online portal
21.Check for pending updation of 1 crore & above online portal
22.Check whether there any pending ERODs
23.System downtime register is maintained and updated
24.Audit alerts are reviewed and action by the branch