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Banking industry has now a fairly large number of young officers who have joined the banking service in last few years or so.   They have also been promoted to Scale II and Scale III in fairly short period as compared to their seniors who took almost two decades to reach Scale III.  This kind of quick promotions has resulted in postings of Incumbent Incharges who have no idea of branch working and in depth knowledge of pitfalls once they have taken charge of the branch.   In terms of the guidelines, in most of the cases, he becomes personally responsible for the lapses of the previous incumbent, if he / she fails to report such lapses at the time of charge taking or within the timeframe prescribed.   Now, a senior banker has come to their rescue and sent us the following article.   All officers who do not have much experience of branch incumbency must read this article carefully so that they face the minimal problems at a later stage.   [These may need some fine tuning based on the internal guidelines of individual banks]


S No

Important Points

Action to be taken


Cash Balances

Cash balances to be physically verified.  It is desirable that the opening cash is verified, as soon as one reports at the branch for which he/she has been designated as the Branch Head.  This is to be attended to, even when his/her predecessor is present at the branch and is yet to hand over the charge officially.  Apart from branch cash, physical cash inside ‘onsite ATM’ is also to be verified.  ‘Bait Money’ and Petty Cash are also to be checked.   A report to this effect is to be submitted to the controlling office.


Gold Coins

Stock of Gold Coins to be meticulously verified and any discrepancies found are to be reported to the controlling office immediately.


Gold Ornaments

Ornaments of Gold Loan Borrowers are to be verified with the help of the one of the joint custodians or a Senior Officer staff of the branch.


Physical securities held

Physical Securities (usually Bonds and Government Promissory Notes) held on behalf of the Head Office for SLR and Investment purposes are to be carefully checked. [Now a days there are minimal chances of such physical scrips as most of these have been converted into demat form]


Articles in Safe Custody

All articles kept in safe custody like Parcels received (meant for delivery to customers), Keys of vacant Lockers, Term Deposit Receipts yet to be delivered to the depositors concerned, Term Deposit Receipts held towards Margin on Bank Guarantees and Letters of Credit, Term Deposit Receipts pertaining to Deposit Loans closed, Securities like LIC policies, NSCs, Shares, Bonds and Debentures of borrowers who have closed their loans taken by pledging these and Power of Attorney of Officers are to be verified thoroughly.


Duplicate Keys lodged by other branches

If any nearby branch has lodged their duplicate keys of Strong Room and Cash safes with the branch, it is to be ensured that such packets are intact.


Joint Custodian Keys

Keys of Strong Room Main Door and Grill, Keys of Cash Safe and any other safe (for keeping gold ornaments and other valuables and safe custody articles), Keys of Double Lock Cabinets (for keeping Loan Documents and Security Stationery) are to be physically verified.  ATM keys are to be checked without fail.


Duplicate Keys

Certificate obtained for lodging duplicate set of aforesaid keys with another bank/branch to be perused.  If the keys set was not changed in the last two years, it’s better to change the set.


Security Stationery

All the security stationery like Demand Drafts, Pay Orders, CD/SB Cheque Books etc. are to be checked at random.  The stocks must tally with computer records.  Security stationery taken out and currently in use and issued to customers, but not yet delivered to them are to be properly accounted for.


Debit Cards, PIN Mailers, Envelopes containing Internet Passwords etc.

Stock of Debit Cards, Debit Cards issued but not yet delivered to the customers, PIN Mailers and Envelopes containing Internet Passwords of the customers are to be randomly checked.


Computer Hardware

All Personal Computers, Printers (Laser/Inkjet/Dot Matrix/Passbook Printers), UPS and Modem/Router to be inspected and properly accounted for. Warranties and Annual Maintenance Contracts in force are to be updated.


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S No

Important Points

Action to be taken


Computer Software

CDs of all Licensed software (Systems and Applications Software) to be preserved carefully.


Safety and Security

Burglar’s Alarm to be checked. Fire Extinguishers and Fire Alarm to be checked.  Other deficiencies and irregularities reported in the latest report of Security Inspection to be rectified.  Guns and their licences etc to be verified.


Office Equipments

Air-conditioners, Water Coolers, Token Display, Cash Counting Machines, Fax and Telephones are to be checked.



All major furniture items to be inspected with the latest Inventory Jotting.  Furniture identified as unserviceable and fit to be condemned are to be segregated for further action.  Residential furniture of officers transferred/retired/died are to be marked for further disposal.


Customer Complaints

Customers’ Complaints received through Zonal Office/Head Office, Banking Ombudsman, Consumer Forum and directly are to be attended on top priority.


Death Claims

Claims received for the deposits and securities in the name of the deceased customers are to be processed and settled quickly.


Credit Proposals

Credit proposals received shall be dealt with and decision communicated to the applicants within a reasonable time (10 to 30 days, depending upon the type of loan).


Overdue Limits

In case of working capital limits that have fallen due for renewal, appropriate action is to be taken.


Non Performing Assets

Reports of NPAs and Stressed Assets to be generated and further action for recovery is to be initiated.


SARFAESI Proceedings

Where proceedings under SARFAESI Act have been initiated, suitable follow up action must be taken without delay.


Suit Filed Cases

Files relating to Suits filed by the bank in various courts and DRTs for recovery of dues and Suits filed against the bank are to be carefully studied and necessary action taken.


Claims pending with ECGC/CGTMSME

Claims pending with ECGC/CGTMSME are to be followed up.


Inspection Reports

There are several inspections and audits conducted.  Notable ones among them being 1. Annual Inspection by Internal Auditors/Inspectors of Branches 2. Statutory Inspection conducted by external auditors (after March each year) 3. Short inspection 4. Stocks and Receivables Audit  5. Surprise Verification conducted by administrative office 6. Annual Financial Audit (AFI) conducted by RBI 7. Incognito visits made by RBI/BCSBI officials for Customer Service 8. Special Inspection carried out by ZO/HO, on suspected frauds/misappropriation of funds etc.   The incoming manager has to note down only the serious irregularities if any reported in any of these reports and take suitable remedial steps at once.  Irregularities in Documentation and Charge Creation to be taken up first.


Reconciliation of accounts

All unreconciled/ long outstanding items in Inter-Branch Account, Account held with RBI/SBI etc. are to be examined. Similarly, long outstanding items in Suspense Accounts (Sundry Creditors/Debtors) to be studied and necessary action taken for their reversal/squaring off.


Returned Cheques

Cheques returned by other banks (for whatever reason) are to be delivered by personal delivery or Registered Post.



S No

Important Points

Action to be taken


Unit Inspection

All major units financed by the bank are to be financed by drawing a schedule of priority.


Meeting VIPs

All VIP customers and other officials and dignitaries in the vicinity are to be met, one after another, within a fixed time frame.


Unadjusted Items

Unrecovered TODs, Excess Drawings, Ad hoc limits, Bills/Cheques Returned, Invoked Bank Guarantees paid, Devolved L.Cs  etc. are to be attended immediately.


All others

All these items warrant immediate action.

  1. Submission of control returns
  2. TDS Remittance and filing of Income Tax Returns
  3. Pending correspondence
  4. KYC compliance
  5. Recoveries in written off accounts

 Most of the banks will have a circular relating to charging taking of the branch.   You should read the same so that all the requirements as per your bank are met.


P.S.: We are pleased to add the following additional very important points, which should also be always remembered.   These points have been added by Mr C.P. Swarnkar, (Executive Director at PNB who later on was elevated to the post of CMD in another PS Bank) :-

1. Carefully study the fresh sanctions and the renewals done at the incumbent level during last three months or so. 
2. Carefully examine the credit accounts where frequent and /or continuous over-drawings were permitted by the incumbent. 
3. Do not believe the parties who are in a undue hurry to get their sanctions which had been pending during the time of the previous incumbent. 
4 Never bring parties from your previous posting as anybody will come only if he has some undue interest to be served. 


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