Module II

Other Services –Teller Functions in Banking

 Significance of a Teller

A Teller is a banking professional who handles customer transactions such as cash deposits, withdrawals, transfers, and
cheque processing at the bank's counter. Known as the “face of the bank,” tellers provide essential services that form the
core of banking operations.

Role of Tellers in Banks:

▪ Handling Transactions: manage both simple (deposits, withdrawals) and complex (cheque clearing, internal
transfers) transactions.
▪ Ensuring Accuracy: Use tools and technology to ensure transaction accuracy and prevent fraud.
▪ Customer Interaction: Build trust by answering queries and providing swift, secure services.
Criticality of Teller Functions:
▪ Efficient Service: ensure fast, reliable transactions, vital in high-traffic branches.
▪ Security & Compliance: adhere to strict security protocols and KYC regulations to prevent fraud.
▪ Building Trust: deliver accurate and secure services, fostering long-term customer relationships.
 Teller Functions in Banking

Cash Handling, Internal Transfers, Cheque Clearing, and Safe Deposit Lockers

Teller functions form the core of banking operations, ensuring efficient handling of cash deposits, withdrawals,
internal transfers, and cheque clearing. This presentation delves into the key teller services offered by banks and how
they facilitate day-to-day banking activities.
Overview of Teller Functions

Teller functions cover a wide array of customer-facing banking services. These core duties ensure operational
efficiency, customer satisfaction, and regulatory compliance.

Cash Transactions: managing cash deposits and withdrawals, ensuring accuracy and security.

Fund Transfers: handling internal transfers for customers, ensuring smooth account operations.

Cheque clearing: processing collection and clearing of cheques, including using the Cheque
Truncation System (CTS).

Safe Deposit Services: custodian of locker services for customers’ valuables.

Customer Service and cross sell: engaging directly with customers, acting as the bank’s front line for
resolving issues and offering services and cross-selling of Bank and Third party products.
 Cash Deposits

Cash deposits are one of the most frequent teller transactions. This slide focuses on the process, regulations, and importance
of efficient cash deposit services."

Process:

• Customers deposit cash at the teller counter.

• Tellers verify the deposit slip and authenticate the denominations provided.
• Amount is credited to the customer’s account after validation.

Daily Limits: Some banks impose daily deposit limits for cash deposits to regulate large cash flows.

Cash Verification: Tellers use machines and manual methods to check for counterfeit notes and ensure accuracy.

Importance: Provides liquidity for customer accounts and ensures the availability of funds for online transactions or
withdrawals.
Sample Pay-in-slip
Cash Withdrawals
Cash withdrawals are the most frequent transactions carried out by bank customers and the Teller has to follow a systematic
process to ensure that cash withdrawals are handled smoothly while maintaining high levels of security.
Process
Customers present a duly filled withdrawal slip or a signed cheque to the teller. These documents authorize the withdrawal of a
specific amount from the customer’s account.
Identity Verification
The teller verifies the identity of the customer by cross-checking signatures, mode of operation, comparing them to the
bank's records. In some cases, biometric verification (such as Aadhaar) or other government-issued ID (e.g., PAN card,
passport) may be required to authenticate the customer, especially for high-value transactions.
Daily Withdrawal Limits:
Banks impose daily withdrawal limits, usually determined by the account type and customer profile.
Security Protocol for large Withdrawals:
For withdrawals exceeding a certain threshold, the bank may require additional security checks. This could involve contacting
the customer via phone to confirm the transaction
Checker Authorization
The Cash Authorizer reviews the withdrawal before the transaction is finalized to ensure all protocols were followed.
Cash Disbursement:
Once all checks are cleared, the Teller processes the withdrawal -ensuring the amount requested matches what is authorized
before physically handing over the cash.
Cheque Clearing – Cheque Truncation System (CTS)
Cheque clearing is an integral part of banking operations and CTS is a game-changer in Banking operations, allowing
faster, safer, and more cost-efficient cheque clearing. It benefits both the bank and the customer by improving the overall
experience of cheque-based transactions

What is CTS: introduced by the Reserve Bank of India, the CTS eliminates the need for Physical movement of cheques
by transmitting digital images of cheques for clearing.
How Does CTS Work ?
• Digital image capture : when a Cheque is deposited, the bank takes a digital image of it. This image, along with
necessary data like cheque number, account details, and amount, is sent to the clearing house.
• Clearing House Processing : The clearing house receives the digital image and processes it. The original physical
cheque stays at the branch where it was deposited.
• Drawee Bank verification : The drawee bank (the bank on which the cheque is drawn) receives the image and
verifies it. If everything matches, the payment is approved and the funds are transferred to the payee's account.
Benefits of CTS
• Faster Clearing : cheques are processed electronically, clearing happens much faster.
• Reduced Fraud: CTS enhances security by reducing the chances of tampering with physical cheques during transit.
• Cost-Efficient: Banks save money by eliminating the need to transport physical cheques across branches or cities.
• Reduced Errors: Since CTS uses digital images for processing, it minimizes the chances of human error during cheque
handling.
Cheque
Cheque is a special form, used by an account holder, to order the bank to pay a sum of money, from
their account to another person

The drawer (signatory)

Drawee Bank (bank logo on top left)

Payee (to whom the Cheque is payable)

The words (OR BEARER)

Cross the cheque on left hand top corner.

IFSC Code of the branch

What is Remittance
Remittance services allow customers to transfer funds, both domestically and internationally, for personal purposes,
like sending money to family, paying bills, or making purchases and also financial connectivity across borders.
Demand Draft
A Demand Draft (DD) is a secure way of transferring money where one bank instructs another branch to pay a specific amount to a
person or business. It is guaranteed by the bank and payable on demand.

•Issued against cash for maximum of Rs. 50,000.

•DDs for Rs. 20,000 and above should be issued only with “Account Payee” crossing
•DDs issued for Rs. 50,000 & above should be signed by tw0 Authorized signatories

•Duplicate DD issued based on request letter, Indemnity and Surety.

•Revalidation of DD includes cancelling original DD and issue of new DD.

PO’s or Banker’s Cheques

Banker's Cheques are generally used for transactions within the same city or local area. They are not meant for intercity or foreign
payments.
• Banker's Cheque is fully backed by the issuing bank, ensuring that the payment is guaranteed and will not bounce
• Since it is a pre-paid instrument, the Banker's Cheque is payable on demand and can be encashed immediately
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Online payment systems have revolutionized banking in India, offering seamless and efficient ways to transfer
money. With systems like NEFT, RTGS, IMPS and UPI, customers can do transactions from the comfort of their
homes/offices

NEFT (National Electronic Funds Transfer)

NEFT is a widely-used electronic funds transfer system in India, allowing individuals and businesses to transfer money between
banks. Transactions are processed in batches and typically settle within a few hours during banking hours.
RTGS (Real-Time Gross Settlement)
RTGS enables real-time, high-value transactions between banks, ensuring that the money is settled immediately without any
waiting period. It is primarily used for transferring large amounts, with a minimum transaction limit of ₹2 lakhs.
IMPS (Immediate Payment Service)
IMPS is an instant interbank electronic fund transfer service that operates 24/7, including on holidays. It allows individuals to
transfer money immediately, making it ideal for small and mid-sized transactions. IMPS can be accessed through mobile
banking, internet banking, and ATMs, offering flexibility for users.
UPI (Unified Payments Interface)
UPI allows real-time money transfer between bank accounts via mobile devices. It simplifies the payment process by using virtual
payment addresses, eliminating the need to share sensitive banking information.

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 Online Fund Transfer
Methods

NEFT – National
RTGS – Real Time
Electronic Fund IMPS – Immediate Payment
Gross Settlement
Transfer Services

Settlement within 2
Instant settlement
hours
Instant settlement

Min-2 Lac Min-Rs 1

Max-no limit Max- no limit Min- Rs 1
Max- 5 lac/day

Available 24*7 Available 24 * 7

Available 24 * 7

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Safe Deposit Lockers
Safe deposit lockers are offered by banks to provide customers with secure
storage for valuable possessions. This slide explains the services related to safe
deposit lockers.
Service Offered: Customers rent lockers to securely store items like:
o jewellery,
o documents,
o or other valuables.
Security: Lockers are housed in secure vaults, and access is typically granted
with a dual-key mechanism (one held by the bank, one by the customer).
Usage : customers can access their locker during branch hours with
necessary identification.
Locker Sizes and Costs: Lockers come in various sizes, with charges
depending on the size and location of the locker.
Locker rent is taken in advance for the FY by the Bank.
Relationship between a Banker and the customer in case of a locker transaction
is that of a Lessor and a Lessee
Banks do not automatically insure the contents of the locker
According to RBI guidelines, banks are required to implement a
compensation policy. In case of incidents like fire, theft, or fraud where the
bank’s negligence is established, the bank must compensate the locker holder
up to 100 times the annual rent of the locker
Safe Deposit Lockers
Nomination Facility:
Customers can nominate a person who will have the right to access the locker
in the event of the account holder’s death. This simplifies the process of
retrieving valuables for the legal heirs or nominee.
Access in Case of Joint Lockers
For lockers with joint holders, it’s important to note that either of the holders
can access the locker individually, unless a specific instruction for joint
operation is provided. If one of the holders passes away, the survivor generally
gets access after following the necessary procedures.
Inactive Locker Policy
If a locker remains unoperated for a long time, banks may issue a notice to
the customer. Continuous inactivity could lead to the termination of the locker
agreement.
Penalty for Delayed Rent Payment:
banks may impose penalties or even deny access if locker rent is not paid on
time. Locker holders should ensure timely payment of rent to avoid such issues.
Locker Surrender Process:
The process for surrendering a locker is straightforward but requires the
customer to clear any dues, return both keys, and empty the locker.
Importance of Teller Services

Customer Interaction and Relationship Building

Tellers are often the first point of contact for customers in banks. They play a crucial role in building trust and rapport with
customers, enhancing overall customer satisfaction.
Cash and Transaction Handling
Tellers are responsible for processing deposits, withdrawals, and payments. Their efficiency ensures smooth day-to-day operations,
helping customers manage their finances easily.
Fraud Detection and Prevention
Tellers are trained to detect counterfeit currency and suspicious activity. By monitoring transactions, they act as the first line of
defense against fraud and financial crimes
Advisory Role
Tellers can provide basic advice on bank products and services. They guide customers on opening accounts, applying for loans, or
using new digital banking services.
Personalized Services for Special Needs
Tellers assist elderly customers, people with disabilities, and those unfamiliar with digital Banking. Their personalized attention
ensures that all customers have access to banking services.
Operational Efficiency and Customer Support
By addressing immediate customer concerns, tellers reduce wait times and improve the overall efficiency of branch operations.
They also help resolve transaction-related issues, ensuring a smooth banking experience.
Thank You