FAQ - Cheque Clearing issues for CBS Post offices

HOW TO HANDLE INWARD CLEARING?

Important:- The HO which is dealing with Clearing House will debit all cheques received from Clearing House at that HO only after following the prescribed procedure given below. No cheque should be sent to any other CBS HO or CBS SO.

(i)         Supervisor to open the Zone and enable the Operator to lodge (enter) the inward cheques received for clearing.

SUPERVISOR

Invoke menu HMICZ – for Zone Open

a)             Select the appropriate zone (MICR OR CTS). As of now only MICR zone should be opened. CTS Zone should not be selected even the office is linked to a CTS Zone.

b)            Zone Date – By default System date

c)             Total Advice -Supervisor should enter the total amount of inward clearance amount. This can be modified even at a later stage.

d)            Total No. of instruments in Advice – Total number of cheques corresponding to the Total advice to be entered. This also can be modified at a later stage. Click on Submit.

e)             Zone is opened successfully`

(ii)  OPERATOR

a)             Invoke menu HICTM – to Lodge (Enter) cheques received for Inward clearance

b)            Select the appropriate Inward clearing zone opened by supervisor.

c)             Enter the cheque number, amount and account number

Carve – by DEFAULT it is YES

(Carve – Carve means to slice off specified portion of funds equivalent to cheque clearing amount out of the total available balance. This is done to ensure that the cheques received for inward clearing is for sure cleared if sufficient balance is available. Customer cannot withdraw even from this account, the amount carved).

Suppose if there is insufficient balance in the account – An error will be thrown. Change the Carve as NO and lodge (enter) the cheque. Ensure that this cheque is marked as “Reject” in Inward zone – Inward reject can be done by using OPTION HICTM after running Post Validation run.

d)         To make Carve NO for rejected cheques (compulsory) first user need to click on empty space near individual cheque summary and then proceed further by clicking on explode button for additional rejection details. After completion of filling additional rejection details and click on accept then only rejected cheque’s  carve status  will become NO. With Carve Yes, rejected cheques will not be allowed to lodge. In above 3 screenshots how inward rejected cheque carving status changed from Yes to NO is shown.

e)         Alternatively by selecting the particular and clicking on show exception carve status can be changed to NO.

f)          For both type of rejects i.e. Inward and Outward rejects carving should be NO.

g)         Click on the SVS – Signature Verification system icon to view the signature

(iii)       Procedure to identify the duplicate cheque/instrument entry and delete the duplicate cheque entry

Errors will be thrown during EOD if Duplicate cheques are entered.   Procedure for deleting the duplicate entries is as follows:-

(a)        Invoke HICTM and select Delete function.

Note: Delete function can be used to delete the verified as well as unverified instruments

(b)        Click on Accept and the below screen comes up.

(e)        The Selected check box should be ticked for the record which needs to be deleted. For the other cheques, this check box shouldn’t be ticked

(iv)       If error “Carving could not be done as there are scheme errors” is shown, following is the solution:-.

This error is thrown when wrong account number is lodged (entered) in HICTM menu. This error is also when the scheme of the SB account is non cheque. Same has to be changed using HACXFRSC before lodging the instrument.

SUPERVISOR

(v). What to do by the Supervisor:-

Verify the cheques lodged (entered) using menu – HICTM

Click on Accept after verifying the details.

Suspend the Zone – HMICZ

(Please Note: No cheques can be lodged (entered) after SUSPEND. Still if any cheques are left out or high priority cheques to be entered, the same can be done by un-suspending the zone thru menu UNSUSPEND. Again lodge the cheques thru HICTM, verify and suspend the zone)

HMICZ - Validation run. This is Very Very  important.

After Suspension of Zone, validation Report should be generated. This report can be   checked  by using menu HPR to find out any rejects.

If any rejects are found in HPR due to insufficient balance or for other reasons, go to HICTM – Modify – Select the appropriate cheque number and mark as INWARD REJECT by selecting appropriate reasons. If any double entries are found, go to HICTM and DELETE the appropriate cheque.

(vi)       Process for Rejecting the cheques which failed

(a) Invoke HICTM – Modify option from operator

(b) Click on Accept without entering any details

(c) Select as “Inward” from the drop down in “Reject” field

(d) After clicking on Inward Reject an error will be thrown as “Enter all Mandatory Field”. Click on the red and white button near the Reject field

(e) If any error is found in HPR, supervisor cannot proceed further to POSTING.

(f) If no errors are found, zone status will show as Validation run successful. This can be checked through menu HMICZ – Inquire – Zone Status

(g) Go to HMICZ – Modify mode- Enter the total number of instruments and total amount. Thisshould be done in SUSPENDED ZONE. This is mandatory. Supervisor cannot POST the zone if this is not done. Once the postings are initiated these statistics cannot be modified. Hence, extra care must be taken to update the correct statistics before initiating the postings.

(h) HMICZ – Post. Actual transactions happen at this stage only.

(Suppose if CARVE is NO. Balance will not be checked at time of LODGING. Suppose funds are available during VALIDATION RUN and while POSTING, no funds are available, these transactions will be in ENTERED state. The reason for this transaction in ENTERED state can be checked in HTM – Enter Tran ID - List All exceptions menu. Reason for entered state can be recorded and this cheque is to be deleted using HICTM menu. However this cheque cannot be honored.

(i) Reports can be taken in HPR . Scheduled report for all CLEARED CHEQUES.

(j) For taking print out of Rejected Cheques INVOKE MENU HREJREB

(k) Zone Close – HMICZ. This should be done after all the above are completed

OUTWARD CLEARING PROCESS

(vii)      First of all, Supervisor has to open Zone

·         For Opening of Zone, Supervisor will go to – HMCLZOH

·         Select “Open Zone” in the Function field and select the date

·         Select the appropriate zone “MICROW” for MICR Outward. CTS-MICR for MICR     Outward CTS should not be selected.

·         Click on Go

(viii) Entering of cheques.

·         Counter PA enters the outward cheques using the menu HOCTM

·         Select the function “Add” in the Option field and select the zone code and zone date

·         and click on GO. MICR flag will automatically change to YES

·         Enter the Account Number for which the cheque is to be credited

·         SB account number -   SB account number in case of subsequent SB Deposit

·         SOLID0017                -    In case of subsequent RD Deposit / Agent Bulk Deposit

·         SOLID0017                -   In case of  PPF subsequent Deposit

·         SOLID0382                -    In case RD/TD/MIS/SCSS/NSC Account Opening

·         Enter the amount in the Amount field

·         Enter the Transaction remarks like PPF, MIS, NSC, etc in the free Text field.

·         Click on Add

·         If Single Cheque and  Single Account Enter the instrument details in the second part of the screen

·         If Single account – Multiple cheques – Click on Add below the Instrument details option

·         If multiple account – Single cheque – Click on Add below the account details

·         Enter the Instrument Date – Cheque Date

·         Enter the Instrument No – Cheque Number

·         Enter the transaction code as 10

·         Enter the sort code          -  Sort code is of 9 digits. Enter the 4,5,6^th digit

·         Click on the searcher

·         The Bank Code list searcher will appear. If sort code is not available in searcher, enter sort code of any branch of that Bank.

·         Click on submit and select the appropriate Bank, Branch Code

·         Once all the accounts / cheques are entered, the SUMMARY details can be viewed. Total Credit amount and Number of instruments.

·         Click on Submit. Set No. will be allotted for cheques lodged.

(ix) Verification by Supervisor.

·         Supervisor to verify the cheques lodged using the menu HOCTM

·         Select the Function – Verify and click on GO

·         Select the appropriate ZONE CODE, Zone Date and Set Number

·         Click on Go

·         All the instrument details will be listed below

·         Instruments details can be viewed by clicking on the respective instrument number

·         Total CREDIT AMOUNT and Number of instruments should tally

·         Click on Submit

·         “Successfully Verified in Online Module along with SET NUMBER            “ will appear

(x) Suspension of Zone.

·         Invoke the menu HMCLZOH to suspend the zone

·         Invoke the menu HPCLSO to print the CLEARING HOUSE SUMMARY REPORT

(xi) Release to shadow balance.

·         Invoke the menu HMCLZOH to Release to Shadow Balance

·         Select the function “Release to Shadow Balance”

·         Select the appropriate date and zone

·         Click on Go

·         A window with General and Statistics tab will be opened

·         While RELEASING TO SHADOW BALANCE, Zone Status should be “SUSPENDED ZONE”

·         Click on Submit

·         Job will be initiated and the report has to be checked in HPR

(xii) Marking of Outward Reject.

·         After receipt of scroll, Rejects if any to be marked. Outward rejects are to be marked in Inward Clearing Zone. (Process given at Point (vi).)

(xiii) Regularization of Zone

·         Invoke the menu HMCLZOH to REGULARISE  SHADOW BALANCE. Zone will be automatically closed on completion of this step.

·         Select the Function “Regularise  Shadow Balance”

·         Select appropriate date and zone

·         Click on Go

·         A window with General and Statistics tab will be opened

·         While Regularising Shadow balance, the ZONE STATUS should be “RELEASED TO SHADOW BALANCE”

·         Click on Submit

·         Batch Job will be initiated and the report can be taken using the menu HPR

·         If status of the any of the cheque is unknown HMARKPEN menu can be invoked to keep that cheque in pending for clearance. Same can be revoked by using the menu HREVPEND(available only for Postmaster).  Using these 2 menus, zone can be partially regularized.

·         The balances in SB will be posted automatically once the zone is Regularised.

·         Funds cleared for RD, PPF subsequent deposits will be parked in the Office Account. Invoke the menu HACLINQ to check the balance in the office account SOLID 0017. Fund the respective RD, PPF account using the appropriate menus by transferring funds from this office account.

·         Funds cleared for NSC, MIS, TD, SCSS account opening will be parked in the office account SOLID 0382. Invoke the menu HACLINQ to check the balance in the office account SOLID 0382. Fund the respective accounts by transferring from this office account.

·         The status of the zone can be viewed using the menu HMCLZOH

Procedure for handling Cheques presented at CBS SOs

(xiv)  AT CBS SUB OFFICE from where the Cheques are sent to CBS HO dealing with Clearing for clearance

·                     Invoke the menu HOMSO

·                     Select the function “Add”. Date will appear automatically

·                     Click on GO

·                     In case of subsequent deposit in Savings Account, Enter customer’s savings Account Number irrespective of where the account stands.

·                     In case of cheques presented through MPKBY Agent LOT, enter or select from searcher SO SOLID0017 as Account number.

·                     In case of RD Subsequent Deposit at counter, enter or select from searcher, HO SOLID0017 as Account Number.

·                     In case of PPF Subsequent Deposit at counter, enter or select from searcher HO SOLID0017 as Account Number.

·                     For new accounts/certificates opened by cheque, enter or select from searcher, SO SOLID0382 as Account Number.

·                     Enter the amount of cheque

·                     Enter the cheque number

·                     Enter the MICR code available in the cheque (this is mandatory)

·                     Enter the cheque date

·                     Enter the Tran Code as 10

·                     Click on Submit if only one cheque is available

·                     If multiple cheques are available, click on ADD and enter the cheque details of other cheques as detailed in above steps.

·                     Supervisor need to verify the cheques entered using same menu HOMSO

·                     Select the function VERIFY and enter the date

·                     Data verified successfully message will be displayed

·                     Take the report using the menu CHLR. This menu is accessible only for OPERATOR

·                     Report can be generated using menu CHLR

·                     Softcopy of cheques lodges can be viewed by clicking on the explode icon

·                     Copy the filepath from the above location

·                     Invoke the menu HTRFTOPC. Enter the source file name (the copied content can be pasted here) and the destination directory

·                     The txt file will be copied to the said location in the local drive.

·                      Send this txt file along with CHEQUES to HO

Note:- Same procedure will be followed by CBS HO not dealing with clearing house but attached with another CBS HO dealing with Clearing House.

(xv) At CBS Head Office (Dealing with Clearing House)

After entering the HO cheques through HOCTM, upload the SO/Other HO Cheques using the procedure mentioned below:-

·                On receipt of Physical Cheques from SO or HO alongwith list, HO will tally cheques with list.

·                Invoke HCLUPLD from supervisor menu

·                Copy the .txt file received from Sub Office to the required location.

·                Browse and upload the file path wherein the cheque lodged txt file is available in the local system

·                This has to be verified by the supervisor using HOCTM menu

·                After verification, both the HO and SO/other HO cheques will be available in the Outward Clearing Report.

·                Suspend the zone

·                Take the reports using the menu HPCLSO

·                Release to shadow balance.

·                If no errors are thrown, release to shadow balance will happen successfully.

·                Cheques received from SOs and other HOs will be sent to Clearing House alongwith cheques lodged at HO (received at HO counter).

·                On receipt of cheque clearance scroll from Clearing house, HO will regularize the Shadow Balance.

·                Once regularized, funds will be credited to

a)         Respective SB account of customer and would appear in SB Consolidation of HO.

b)         Office Account 0017 of SO for cheques presented by MPKBY Agents at SO for subsequent deposit in RD.

c)           Office Account 0017 of HO for HO cheques of RD Deposits.

d)           Office Account 0017 of HO for Sub Office cheques – For subsequent deposits (RD, PPF)

e)             0382 of HO for HO cheques presented for opening new Accounts/certificates.

f)             0382 of Sub Office for cheques received from sub offices – For New account opening.

·                     Amount of cheques received from SOs for RD Deposit of MPKBY Agents and for Opening of New Accounts/Certificates will be shown as Remittance Received in advance from SO concerned and intimation will be sent to Sub Offices via E Mail as well as entry in SO Slip.

·                     Amount of subsequent deposit into Savings Accounts, RD and PPF of SOs and HO received through clearing will  be accounted for at HO. In case of Savings Accounts, credit will happen directly on release of shadow balance and amount will be reflected in LOT as well as Consolidation. In respect of RD and PPF, HO has to credit the amount of each cheque in respective account after looking from Pay-In-Slip from HOSOLID0017 office account. This amount will also appear in HO LOT and consolidation.

·                     For new Accounts/Certificates, HO will open new accounts/certificates and fund these accounts by debiting HOSLOID0382 office account.

(xvi) Process at SO or HO (not dealing with clearing house) on receipt of Intimation of clearing.       

                                                                                                                                                                                                                                                                                                                                                                                                                              

·                     On receipt of intimation from HO, Sub Office or other HO will post the agent lists by debiting their SOLID0017 office account.

·                     SO or other HO will open new accounts/certificates and fund these accounts by debiting their SOLID0382 office account.

·                     SO and other HOs will account for this amount as Remittance to HO or Clearing House HO against intimation of clearing received.

(xvii)  Errors and solution

·                In case after the cheques are lodged and while viewing the cheques lodged report, a message “No records present for the given criteria “ is available in cheque lodged report.

Reason: This is due to non verification of HOMSO by the supervisor

·                It is advisable, to use searcher for typing SORT CODE, as HOMSO doesn’t validate for the availability of SORT CODES in the database unlike ZONE. If any SORT CODES are not available in the database uploading will fail at ZONE level.

(xviii) What to do when Posting of Inward Clearing Zone not going through.

Ans.- This issue was noticed in one of CBS post office because of the below issues .

Solution:- User failed to see from validation report in HPR that  'Total Amt. in Advice' and 'Total No. of Instr. In Advice' in HMICZ menu was not entered hence the posting of the zone was not going through.

(xix) Point to be remember:-

 Once the zone is opened in HMICZ, the instruments are lodged in HICTM menu. Once the instruments are all lodged and verified successfully, before suspending the zone in HMICZ, the 'Total Amt. in Advice' and 'Total No. of Instr. In Advice' should be entered and then the zone should be suspended.

(xx) Duplicate, Postdated instruments are getting lodged in Inward clearing zone and postings are initiated.

For this, workaround has already been circulated by Directorate. To avoid this scenario,

·                Click on “Show exceptions” to view the error while lodging.

·                Validation run report should be compulsorily checked in HPR. Only when there are no discrepancies in that report, postings should be initiated. Even amount and instrument statistics should be updated properly before initiating postings. After posting is initiated statistics cannot be modified.

(xxi) Outward reject instruments are not getting lodged in inward zone.

This is because in outward clearing zone, balance is not released to shadow balance. Only after outward zone balance is released to shadow balance, outward rejection instruments can be lodged in inward zone.

(xxii) Can the cheque cleared date be changed in Outward clearing?

Suppose if the cheques are sent for outward clearing on 01/08/2014 and scroll is received on 06/08/2014 with cheque clearing date as 04/08/2014, while regularizing the zone, cheque cleared date will be by default the current date and there is no option to enter the actual cheque cleared date. While funding new MIS/SCSS/TD/RD/NSC/PPF accounts opened or for subsequent deposit in RD/PPF accounts, actual cheque cleared date should be entered in the Value date field.

(xxiii) How to handle Outstation Cheques in Finacle?

Use HIRM menu and follow below mentioned steps:-

a.         Invoke the menu HIRM.

b.         The details of the cheque and the account number have to be keyed in using the Lodge option.

c.         Finacle will automatically collect the collection charges.

d.         Verification should be done for the lodged cheque.

e.         Send the cheque physically to the outstation location.

f.          If the cheque is cleared - intimation coming from outstation location - the Realize function needs to be invoked in HIRM menu and submitted.

g.         If the cheque is dishonoured - the dishonour function to be invoked and submitted in HIRM menu option.

(xxiv) How to handle dishonoring charge when outstation cheque is dishonored.

In case of dishonor of Outstation Cheque, the user has to choose the charge event ID in HIRM menu in change detail tab as dishonor (Not calculation just choose the only available value).

(xxv)  What is the procedure for outstation ' AT PAR' cheques.

Solution : At Par cheques should be treated as local cheques and entered in the outward clearing zone with other cheques. No outstation charges should be collected from AT Par cheques and these cheques should not be sent out just like other Outstation Cheques.