COOPERATIVE BANK OF OROMIA S.C.

WELL-COME
07/12/2024 CBO - Customers' Account & Operation Technical Training 1
 Cooperative Bank of Oromia S.C.

Customers’ Account & Operations Technical Training(CA&O)

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 GETTING TO KNOW EACH OTHER

Your Name

Educational status & Field of study

Work experience, if any

Your current work position & assignment place

Your life/Career aspiration

Your expectation from this Training

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 OUR GROUND RULES

Arrive on Time
Switch-off/silent your Mobile phones
Share You Practical Experience,
Respect Others view
Active participation
Avoid interruption and side talks
Any Other (from the participants)……

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 ASSIGNMENTS OF OUR CLASS TEAMS

Class managing team(Admin team)

Time keeper
Reviewing team (Every day morning)
Energizer team

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 Quotes About training

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 Training

Training will neither

make a fish fly nor a “Remember,
bird swim, Training is not what is
But ultimately important…
It certainly will help performance is.”
the fish to swim faster
and the bird fly higher.
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 CA&O Technical training

Value your time enjoy the training!

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 Brainstorming
 Do you think you have the
necessary operational /technical
skill to serve the customer?
 If your answer is no, what
operational/technical skill training
do you need most?

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 MAJOR OBJECTIVES

 To let trainees know the CA&O process

end- to -end;
 To improve performers’ skill in CA&O;
 To enhance customer satisfaction;
 For efficiency and effectiveness in
Operations Management Process;
 To minimize and eliminate operational
errors;
 To minimize and eliminate operational
risks of the bank;
 To refresh knowledge of employee on
customer service practices
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 Training outline

GENERAL BANKING OVERVIEW & CBO BACKGROUND

TYPES OF CUSTOMERS AND ACCOUNTS;
KYC, ILLEGIBILITY CRITERIA & DOCUMENT REQUIREMENTS;
ACCOUNT OPENING & CUSTOMER CREATION;
NEGOTIABLE INSTRUMENTS;
COLLECTION PROCESS;
PAYMENT PROCESSING;
OTHER ISSUES IN ACCOUNT MANAGEMENT;
DAILY CASH MANAGEMENT;
CUSTOMER SERVICE;

07/12/2024
RESOURCE MOBILIZATION;
CBO - Customers' Account & Operation Technichal Training
11
 General banking overview

 Bank is a lawful organization, which accepts

deposits that can be withdrawn on demand. It also
lends money to individuals and business houses that
need it.
 The word “banking’’ has been defined as accepting
deposits from the public for the purpose of lending
and investing.
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 Banking overview………..

Primary and secondary functions of banks:

I. Primary or principal functions are three types:
 Acceptance of Deposit
 Lending
 Investment
II. Secondary or auxiliary functions are two types:
 Agency Services like collection and payment of checks, standing
instruction, collecting Utility bills,
 Miscellaneous or General Services: safe custody, remittances,
advisory roles, opening LCS’ other services like Debit card, credit
card etc.
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 HISTORY OF BANKING IN ETHIOPIA

• The introduction of modern banking in

Ethiopia/Bank of Abyssinia was inaugurated
in February 16, 1906 by the Emperor Minilik
II.
• Bank of Abyssinia was legally replaced by
Bank of Ethiopia shortly after Emperor Haile
Selassie came to power in 1931.

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 HISTORY ………………..

During the invasion, the Italians established branches of

their main Banks namely:
 Banka d’Italia,
 Banko di Roma,
 Banko di Napoli and
 Banka Nazionale del Lavoro and started operation in
the main towns of Ethiopia.
 In 1941 another foreign bank, Barclays Bank, came to
Ethiopia with the British troops and organized banking
services in Addis Ababa, until its withdrawal in 1943.
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 HISTORY ………………..

 In April 1943, the State Bank of Ethiopia commenced full

operation and acted as the central Bank of Ethiopia and had
a power to issue bank notes and coins as the agent of the
Ministry of Finance.
 As per proclamation No.207/1955 of October 1963,
Commercial Bank of Ethiopia took over the commercial
banking activities of the former State Bank of Ethiopia;
 The first privately owned bank, Addis Ababa Bank S.C., was
established on Ethiopians initiative and started operation in
1964 with a capital of 2 million.
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 HISTORY ………………..

 Addis Ababa Bank S.C and Commercial Bank of

Ethiopia were merged by proclamation No.184 of
August 2, 1980 after the declaration of socialism in
1974.
 After the fall of socialism, the first privet bank was
established in 1994(Awash International Bank S.C.)
 After 1994 different privet Banks were established.
 Currently there are about 16 privet Banks in
Ethiopia.

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 BACKGROUND OF CBO

Establishment of CBO
• CBO (S.C.) was registered commercially on October
29, 2004 in accordance with article 304 of
Commercial Code of Ethiopia & in line with
proclamation no. 84/1994 with authorized capital of
Birr 300 million.
• It started operation on 8th march 2005, with paid up
share capital of birr 112 million.
• 62.86 % of Ownership was occupied by
Cooperatives while the remaining 37.14% was
occupied by non-cooperatives.
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 CBO……

CBO
was
Creating establis
financial
inclusion hed to
by focusing perform Accepting
on deposits;
cooperativ
Engaging
es societyin.
other
banking
activities Providin
customarily Buying
carried out by g loans;
commercial &
banks;
selling
07/12/2024
FCY;
CBO - Customers' Account & Operation Technichal Training 19
 CORPORATE IDENTITY
Visual identity/symbolic part of the
organization
Includes: Name, logo, colour, typography & motto
Name :Cooperative Bank of Oromia S.C.
Logo :

Colour : Cyan Blue-Primary colour

: Black-Secondary colour
: Orange-Accent colour
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 CORPORATE IDENTITY

Typography (letter type)

 Arial : for Body text/notes
 Arial narrow: For footnotes and endnote
 Myriad Pro :For outdoor advertisement
 Bank Gothic: Second option for outdoor advert
 Nyala : for Amharic communications
Tagline/Motto
“ Committed to breakthrough!”
 Breakthrough…
o ‘a highly significant or dramatic improvement
in performance .
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 Mission, Vision & Values

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 • “We root our foundation in communities to
provide banking solutions that create
greater customer experience with emphasis
to cooperatives and agro-based businesses
through proper use of human resource and
up-to-date technologies to maximize
stakeholders’ value.”

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 “To be the
leading private
VISION bank in
Ethiopia by
2025.”

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 C
us
In C
toos
Co
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Learnin
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 CORE VALUES
Integriry – we value
 Qualifications of being honest, fair, disciplined and open.
 Having moral uprightness and doing what is right.
 Adherences to ethical standards

Customer Satisfaction-we
 Strive to provide quality customer service/products.
 Respect clients, understand their needs and wants, and do the best to fulfill their request.
 Meet/exceed customer expectations.

Learning Organization- we
 Facilitate learning and continuously transform ourselves.
 Learn from our experiences, Disseminate the knowledge throughout bank;
 Transform new knowledge into action, Encourage an ability to see the big picture;
 Build a common sense of purpose and commitment (shared vision);
 Are adaptable to change;
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 CORE VALUES
Teamwork-we:
 Have a commitment to common vision -showing concern and support for each
other.
 Are one team─ where every person is a valued member, treated with respect.
 Work together for common purpose by sharing knowledge and common culture.
Cost Consciousness- we:
 Are careful about spending.
 Encourage employees to be efficient and cost-effective approach in all aspects of
operations.
Concern for Community-We:
 Take commitment to support the communities
 Collaborate with organs working for communities’ ends.
 Utilize socio-cultural attributes of the communities.

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 CBO PROFILE……….
SALIENT (MOST IMPORTANT) FEATURES
• Broad ownership base and diversified
ownership structure;
• First bank of its kind in the country;
• First private bank in the country established
with big paid-up capital at the time;
• Social and Cultural values oriented services.

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 Figures about CBO as of December 31,2017

Criteria /Descriptions Figures Remarks

Total branch network 290 • Additional 32 Sub- Branches

Total deposit position in birr 18.3 Billion •conv. 17.2 billion & IFB 1.1 billion Br.

Customer base 3.23 Million •Conv. 2.8 million & 0. IFB

Outstanding loan in birr 13 Billion

ATM Card issued 112 thousand • only 6,444 are active

Agent recruited 3,183

Total Asset in birr
Total capital in birr 1.1 billion
NPL Status 4.94%
Total staff strength(no. of staff) 3,296
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 MAJOR STAKEHOLDERS OF CBO

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 Major strategic issues of CBO
• Major Strategic Issues
1. Human resources Development & Mgt.
2. Organizational Capital
3. IS and Infrastructure
4. Profit Maximization
5. Financial Resources Mobilization
6. Capital Growth
7. Marketing and Relationship Mgt.
8. Fixed Asset Acquisition (HO Building)
9. Risk & Internal Control Systems
10. Cost Management
11. Process Efficiency & Effectiveness
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 CBO PROCESS STRUCTURE
• CBO broadly classify process in to two: CORE & SUPPORT
CBO
CORE PROCESS

SUPPORT
PROCESS
Finance, OSCM,
Legal, HR, Risk & Comp., Procurement &
Facilities, IS, Research & Corporate Comm.
Internal audit process

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 GOVERNANCE STRUCTURE

33
 OPERATIONS MGT. STRUCTURE

BOD

President

VP OPERATIONS MANAGMENT

DISTRCITS DIRECTOR –CASP

MANAGER,
ACCOUNTS &
BRANCHES
SETTLEMENT
TEAM

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 CBO CA&O DESIGN PRINCIPLES

Customer
Arrangement can access
Establishme his/her
Single of office
Four eyes nt of account from
window layout(arm
principle(Mak Operations every
service to length
er-Checker Management branch of the
handle all between
arrangement) Process at bank through
transactions makers and
Head office Online
checkers)
banking
(CBS)

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 BRANCH STRUCTURE
DEPENDING ON BRANCH GRADE

C
Manager Chief internal control
S
S O Br.
C CSM M S Controll CRO
S a C er
O k S
A e O
c r/ -
c C C
o h a
u e s
n c h
ts k
e
r
07/12/2024 CBO - Customers' Account & Operation Technichal Training 36
 DUTIES AND RESPONSIBILITIES OF
CSO
As a Maker:
 Attend customers at the counter properly and with due
respect

 Identify customers (KYC);

 Process customers’ account opening and perform cross

selling activities;

 Scan customers’ and authorized staffs’ signatures;

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 DUTIES AND RESPONSIBILITIES………

 Receive cash from all types of transactions;

 Post all type of transactions;

 Prepare cash and non-cash tickets/ instrument;

 Process clearance of negotiable instruments;

 Pays cash to all types of transactions within

his/her limit
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 DUTIES AND RESPONSIBILITIES………

As a Checker:
Ensure the correctness of account opening
documents and opened accounts;
Check and confirm scanned signatures;

Respond referral/authorize request for

deposit and payment as per the limit;
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 DUTIES AND RESPONSIBILITIES………

Signs or countersigns on documents and all

transaction tickets;
 Check blocking order, account closing, lost
instruments report and registration of
delinquent customers.

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 DUTIES AND RESPONSIBILITIES………

Adhere to branch cash control and security

requirements in control of cash and
negotiable instruments;
 Reconcile, settles suspense accounts and
produce periodic report of accounts balance;
 Complete other related duties as assigned.
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 EXPECTED RESULT FROM MAKER/ CHECKER

Delivery of efficient service as per the standard set;

Efficient and accurate handling operational duties;

Proper utilization of resources;

Proper customer handling;

Communicating effectively to customer;

Timely reporting to the concerned organ;

Acting as per code of conducts of the Bank.

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 Tea break

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 TYPES OF CUSTOMERS
AND
ACCOUNTS

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 Objectives

At the end of this section, trainees will able to;

 Correctly identify the Classification of
customers;
 Distinguish among the different types of
customer accounts & products and their
nature.

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 Brainstorming

 What dose customer mean

to the Bank?
 What are the types of
CBO’s Customer ?

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 Customer….
 Any legal entity with whom the bank agrees to conduct a
business;
 CUSTOMER – is a purpose of the our business!
 It can be a:
 Deposit account holder,
 Borrower,
 Guarantor,
 Local /foreign transfer beneficiary,
 correspondent bank, and
 Prospect customers
 other user of any of the services provided by the bank.
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 Customer Classification
Currently the Bank classifies its customers based on:
a) Economic ownership &
b) Volume & value of transaction.

Based on Economic ownership we classify in to five major categories.

These are:
 Private & Individuals;
I. Individuals: include any legal /natural person;
II. Private Businesses: Sole Proprietorship, Partnership, Joint Venture , PLC, Share
Companies & other similar entities;
III. Other Private entities: embassies, international NGOs, funds collected from
community donors, and other institutions which were not legally formed but facilitated
by government bodies.
 Associations & cooperatives ;
I. Cooperative Societies & unions
II. Charities, Societies, Clubs and Associations

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 Customers classification……
 Public enterprises;
I. Public enterprises established under Proclamation No. 25/1992 and
share companies established by Government;
II. All government owned enterprises like Ethiopian Airlines, Ethiopian
Sugar Corporation, Ethiopian Electric Utility, Ethiopian Power
Corporation, etc.

 Non-Bank Financial institutions;

I. Insurance companies &;
II. Micro Finance institutions.

 Government organizations;
I. Federal Government Entities &
II. Regional Government Entities
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 Customers classification……
 Based on volume & value of transaction we
classify the Bank’s customer into two major parts.
These are:
I. Corporate customer : are customers
having relatively higher value & volume of
transaction.
II. Retail customer: are customers relatively
lower value & volume of transaction
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 LUNCH TIME

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 Brainstorming

What Deposit Account Types or

Products do you Know in CBO?

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 Types of Deposit Accounts

• Major types of local deposit product

accounts are:
I. Saving Account;
II. Demand/Checking Account;
III. Time Deposit Account;
IV. Other deposit accounts (such as IFB
deposit products).

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 Saving Account
• Saving Account has several sub categories:
a. Ordinary Saving Account
b. Sinqe-Women’s Savings Account
c. Youth Savings Account
d. Gamme-Junior Account
e. Special saving account
f. Non-Interest Bearing Savings Account

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 Ordinary Saving Account

A. Ordinary Saving Account

Features:
 It is an Interest bearing (i.e. 7%) deposit account
 The minimum balance to open the account is Birr 50.00;
 It can be opened and maintained with zero balance for a
month;
 Within one months time, at least Birr 25.00 should be
deposited. Otherwise, it should be closed.

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 Ordinary SA Features……
 withdrawn by properly filling a withdrawal slip;
 It has a continuous nature;
 Operated by a passbook & an ATM-Card;
 It can be opened and/or operated by a legal agent in the
name of principal, against producing a power of attorney;
 No restrictions on the number and amount of deposit and
withdrawal unless restricted by pertinent bodies;

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 Ordinary Saving Account - cont.…

Advantages of ordinary saving deposit

 Encourages saving culture/habits of the society;
 Enables the depositor to earn income through
interest ;
 Helps the depositor to make fund transfer;
 Paying through ATM/POS cards, internet &
mobile and etc.;
 It provides immediate cash as and when
required;
 It gives record of all transactions for the
customer.
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 Sinqe Women’s Saving Account

 Sinqe Women’s Saving Account

Features & Benefits
 Tailored for women aged 30 years and above;
 opened individually;
 Accompanied by separately branded debit cards;
 Zero Minimum deposit requirements;
 enjoy higher interest rate ( 7.25%) .
 whose average six months’ deposit is Birr 30,000.00 and above will be
entitled to Birr 100.00 incentive for up to 3 of their own children each for
account opening,
 And those who do not have child/children or do not want to use above
incentive package will be offered a coupon of Birr 150.00
 It develops saving habits of women and the general public;
 Builds up future planning;
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 Encourages finical independency for the women.
 Youth Savings Account
 Youth Savings Account
Features & benefits
 It is an account for male and female youth in the age group
15-29 years;
 Zero minimum deposit requirements;
 It is accompanied by debit card;
 It has no transaction fee and free account maintenance;
 Gain higher interest rate compared to ordinary saving
account (7.175%)
 Develop saving habits of self employed teen-youth;
 It builds up future planning;
 It gives financial independency for the youth.
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 Gamme-Junior Account

Gamme-Junior Account
Feature & Advantages
 SA for children aged 0-15 years in the name of the child;
 Administered by parents/guardian until the child becomes able to
do so;
 Opened and operated by the parents jointly, or by the parent or
guardian, or solely by themselves (as the case may be);
 Birth certificate or any evidentiary document issued by pertinent
organ needed;
 If the parent/guardian becomes incapable to exercise their power
of guardianship for various reasons, another guardian is appointed
by the law;
 Payment is enabled to the junior when he/she attains the age of
youth.
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 Gamme-Junior Account………..

 No minimum amount requirement to open the account;

 No transaction and account maintenance fees;
 No debit card is issued on this account;
 When their average six-months deposit level reaches Birr
30,000.00 and above 100 Birr will be credited to their
account;
 Gain higher interest rate (7.175%);
 Develop saving habits & build up future planning.

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 Special Saving Account
Special Saving Account
Features
 Interest bearing account operated by a cheque,
 Customers should be prominent/known to the branch or
 Follow KYC (know your customer) principle to open this account;
 Needs approval of VP – Operations Management to open the
account
 Opened or operated by literate customers only;
 The customer should not be in delinquent list;
 No passbook is required for such accounts;
 Especially designed formats are filled by the customers to open
the account;
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 Special Saving Account………….

 If it has no movement for twelve consecutive

months shall be segregated and transferred to
“Inactive Saving Account operated by Cheque”
category regardless of their account balance;
 The account shall be reactivated after three
consecutive withdrawal made within six
months.

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 Tea break

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 Demand Deposit Account
• Demand Deposit Account consists:
a. Ordinary Demand Deposit Accounts;
b. ECX Related Demand Deposit Accounts;
c. Special Demand Deposit Accounts.

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 Demand Deposit Accounts cont….

Ordinary Demand Deposit Account

Basic features:
 It is current or checking account which is a non-interest bearing;
 it is opened or operated by literate customers only;
 The minimum amount required by the bank to open for individual
trader is birr 500.00 and for organizations/companies Birr
1,000.00 ;
 It requires KYC norms to be completed before opening;
 The account opening customer should not be in the blacklist;
 No restrictions on the number and amount of deposits &
withdrawals;

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 Demand Deposit Account – cont...

 It can be opened and/or operated by a legal agent in the

name of principal, against producing a power of attorney,
which shall be attested by the bank’s legal service or area
offices or branch managers, as the case may be;
 The bank shall issue account statement to the customer on
monthly basis.

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 Demand Deposit Account – Cont...

Advantages Ordinary Demand deposit account are:

 It facilitates/makes easy business transactions;
 It enables to carry out transactions properly and promptly;
 The account holders withdraw without any limit;
 It helps make a direct payment to their creditors by issuing
checks;
 It enables the bank to collect money on behalf its customers;
 Customer’s account statement is monthly issued by the bank.;
 It enables to get OD facilities /after approval of credit request/by
showing the credit worthiness information (swing and turn over);
 Multi-location fund transfers.
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 Demand Deposit Account – cont...

Special Demand Deposit

• It is a checking account which bears interest less
than the minimum interest rate of SA set by the
NBE(determined by the bank);
• All its features & advantages are the same with
ordinary demand deposit account except the
above mentioned one;

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 Demand Deposit Account – cont...
 ECX Related Accounts
 Special Pay-in or Pay-Out account for the members of
the ECX to facilitate the trading of Commodity at ECX;
 opening request is lodged by the ECX through an
account opening facilitation letter to the bank.
ECX Related accounts are:
I. Client pay in
II. Client pay out
III. Member pay in
IV. Member pay out

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 ECX Account types
I. ECX Client Pay-in: An account maintained by members on behalf of their
client. It serves as depository account, for which debit entries are possible
only by instruction of ECX;
II. ECX Client Pay-out: Account maintained by members on behalf of their
client. The account ownership rests with the member account holder;
III. ECX Member Pay-in Account: An account maintained by trading
members of ECX, which serve as payment guarantee to the buyer and
will eventually be used for payment against the sales agreement between
buying and selling parties (Traders). Members only can deposit to this
account;
IV. ECX Member Pay-Out Account: Account maintained by trading
members of ECX, who trade in their own account. This account is used to
receive payment from the trading and the member account holder has an
exclusive right on the account (can withdraw and deposit funds);

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 Overdraft Account

OD is a form of credit facility

 customer is able to draw an amount up
to the approved limit .
 credit facility for the sole purpose of the
day to day operational needs of a viable
and ongoing business;
 It is opened after approval by the
relevant credit committee at HO for
disbursement .
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 Fixed Time Deposit
 Received for a fixed period of time with negotiable interest
rate higher than the prevailing saving interest rate;
 certificate of deposit(CD) is issued;
 Withdrawal is not allowed prior to the maturity date;
 withdrawn before due date forfeits the interest rate;
 Renewed for a further period by collecting old certificate;
 Interest is calculated only for the duration of the certificate,
 No interest will accrue after expiry;
 The minimum balance acceptable for FTD is birr
500,000.00

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 Fixed Time Deposit- cont…
Advantages FTD
 It encourages saving habits for a longer period
of time;
 Earning higher interest rate;
 On maturity the amount can be used for
planned expenditure;
 The bank can use the fund for a longer period
of time;
 The bank can also invest such funds in long
term areas.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 74

 Special Types of Accounts
I. Joint Accounts: for more than one persons to be
operated jointly under "AND" or "AND/OR" remarks;
II. Earmarked/flagged Accounts are opened for a
particular purpose. Funds that are set aside for a
specific project or event. Example:“club account”,
“Project account” “Event account”, etc;
III. Accounts for Interdicted Persons: ordered by court
of law that the person is incapable of discharging
his/her legal right. Operated by a guardian;
IV. Staff Accounts: accounts opened for CBO staffs
V. Indemnity Accounts
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 Foreign Currency Accounts
Foreign-currency accounts are
maintained by any of the following
currencies:
 US Dollar
 Pound Sterling and
 Euro

07/12/2024 CBO - Customers' Account & Operation Technichal Training 76

 Foreign Currency Accounts
Cont.….. – Cont...

Types of foreign currency account may include:

A. Non-Resident Transferable FCY Accounts (NRT FCY)
 Maintained in foreign currency and
 Can be transferred abroad without obtaining foreign
exchange permit;
B. Non-Resident Transferable Birr Account (NRT)
 Account maintained in Birr
 Funds can be transferred abroad in foreign currency
without the obtaining foreign exchange permit
 All sources deposits should be in foreign currency;
07/12/2024 CBO - Customers' Account & Operation Technichal Training 77
 Foreign Currency Accounts – Cont...

c. Non-Resident Non-Transferable Birr Account

(NRNT)
 Account opened to meet their local expenses;
 The account is designated as '' Non-Transferable Birr Account''
 All sources for deposits should be in foreign currency;
D. Foreign Exchange Retention Accounts: accounts
opened for exporters and recipients of inward FCY
remittance (Foreign Currency retention A&B accounts )
E. Foreign Currency accounts in the name of Ethiopian
and foreign nationals of Ethiopian origin (Diaspora a/c).

07/12/2024 CBO - Customers' Account & Operation Technichal Training 78

 End of Day one

07/12/2024 CBO - Customers' Account & Operation Technichal Training 79

 KYC, ILLEGIBILITY CRITERIA &
DOCUMENT REQUIREMENTS

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 Objective
At the end of this section, trainees will
be able to:
 Know the purpose of KYC norms;
 Identify eligible entities who can open different
types of accounts;
 Appropriately identify customers and distinguish
the type of documents required for account
opening;
 Understand the risk of not properly identifying their
current and potential customers.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 81

07/12/2024 CBO - Customers' Account & Operation Technichal Training 82
 Know your customer (KYC) Norms

 KYC aims to understand who your

customer is;
 Involves in verifying, identifying & address of
the customer by submitting documents that
are accepted as relevant proof;
 Identifying the customer, whether regular or
occasional, natural or legal person and
verify the customer’s identity using (as much
as possible) reliable, independent source of
documents, data or information .
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 ILLEGIBILITY CRITERIA

 Before opening of account checking of the

eligibility requirement is mandatory as per
the pertinent governing
procedures/directives;
 Checking of the genuineness of the customer
 checking in Blacklists should be done first
when we opening of accounts operated by
cheques.

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 ELIGIBLE ENTITIES TO OPEN ACCOUNTS

 Individuals;
 Cooperative societies & Unions;
 Associations, clubs & idirs;
 Sole proprietorship/individual traders;
 Joint ventures
 Minor & interdicted persons (through parents
or Tutor)
 Private limited companies (PLC);
 Religious organizations;
 Financial institutions;
07/12/2024 CBO - Customers' Account & Operation Technichal Training 85
 Eligible - Cont…
 Partnerships/Share companies;
 Public Enterprises;
 Private schools, Colleges and Universities
 NGO’s (Local/Foreign);
 International/Foreign Organizations;
 Charities & Associations;
 Labor unions, Religious Organizations;
 Staffs & Any other legal entity that can produce a legal
documents.

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 ELIGIBILE ENTITIES TO OPEN FCY ACCOUNT

Embassies;
Foreign diplomats;
International organizations;
Expatriate employees of international organizations;
Foreign based Charities;
Foreign investors;
Diasporas;
Exporters;
Recipients of inward remittances; and
Other local/international companies with the approval of NBE.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 87
 DOCUMENT REQUIREMENTS FOR ACCOUNT OPENING

Valid ID Cards
 Kebele ID ;

 Employment and pension ID;

 Schools, Colleges and Universities ID renewed

 Driving Licenses,

 valid passports, work or resident permits;

 Foreign nationals of Ethiopian origin identification

cards.
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 Content of Valid IDs

Acceptable ID cards consist of following information :

 Full name /Person’s name, Father’s and Grandfather’s name.
 Person’s Photo;
 ID number;
 Issue date/not expired;
 Issuer name and issuer’s stamp;
 Residential address of the ID card holder;
 Date and place of birth;
 Nationality;
 Occupation.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 89
 Documents Required

For individuals
 Valid I.D card;

 Two recent passport size photographs for savings

account;
 One passport size photograph and TIN for demand
deposit account.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 90

 Documents Required - Cont…

For individual Trader

 One valid and renewed I.D. card;
 Renewed trade license;
 One recent passport size photograph;
 Tax Identification Number(TIN).

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 Documents Required - Cont…

Private Limited Company(PLC)

 Letter of request to open and operate the
account;
 Renewed trade license in the name of the
company;
 Memorandum and article of association;
 Valid and renewed I.D. card of the
authorized person.
 Tax Identification Number (TIN).

07/12/2024 CBO - Customers' Account & Operation Technichal Training 92

 Documents Required - Cont…
Cooperative Societies
 Certificate of registration issued by the appropriate
authority & Support letter from concerned govt. organ;
 Approved and registered cooperative’s rules and
regulations;
 Minutes of members’ resolution at the latest general
assembly;
 A letter of request by the chairperson to open and
operate current account;
 Valid and renewed I.D. Card of the authorized person.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 93
 Documents Required - Cont…
Partnership
 Renewed trade license and investment
certificate in the name of the partnership.
 Partnership agreement
 Letter of request to open and operate the
account
 Valid and renewed I.D. card of the authorized
person to operate the account.
 Tax Identification Number (TIN).

07/12/2024 CBO - Customers' Account & Operation Technichal Training 94

 Documents Required - Cont…
Share Company
 Renewed trade license;
 Memorandum and article of association;
 Minutes of the board of directors with regard to the
opening and operating of the account;
 Letter of request to open and operate the account,
which shall be signed by the board chairman and
bears the company’s seal;
 Valid and renewed I.D. cards of the authorized
person to operate the account;
 Tax Identification Number (TIN).
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 Tea brake
Day two morning

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 Documents Required - Cont…

Colleges and Universities (Government Owned)

 Letter of authority from Ministry of Education or from their
respective university; OR
 Letter of authority from the respective university or from
Regional Education Bureau as appropriate; OR
 If the institution is established by proclamation and
announced through a ‘Negarit Gazeta’, account opening will
be by the letter of request of the Institution;
 Valid and renewed I.D. Card of the authorized person to
operate the account.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 97
 Documents Required - Cont…
Private Schools and Colleges
 For Private limited company, all the required documents
stated under Private Limited Company(PLC);
 If the private school or college is established individually, all
the required documents stated under individual trader person
and school or college shall be opened;
 Valid and renewed I.D. card of the authorized person to
operate the account.

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 Documents Required - Cont…
Public Enterprises
 Public enterprises shall produce the “Negarit Gazetta” to
attest their establishment;
 Letter of appointment of the General Manager by the Board
of management;
 Letter of request to open and operate the account by the
general manager;
 Valid and renewed I.D. card of authorized signatories.

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 Documents Required - Cont…
Trade Union
 Certificate of registration from the concerned ministry or region
bureau of labor and social affairs;
 Approved and registered rules and regulations of the trade
union;
 Resolution of the general assembly appointing the executive
committee of the trade union;
 Minutes of the executive committee;
 Letter of request by the chairperson to open and operate the
account;
 Valid and renewed I.D. card of the authorized signatories .
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 Documents Required - Cont…
Associations and Clubs
 Certificate of registration;
 Rules and regulations of the associations;
 Minutes of members’ resolution at the last general
assembly appointing the executive committee;
 Minute of the executive committee and request letter by the
chairperson to open and operate the account;
 Letter of request by the chairperson to open and operate
the account;
 Valid and renewed I.D. card of the authorized signatories.

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 Documents Required - Cont…
Religious Organizations and Others
The Ethiopian Orthodox Tewahido Church
 Churches located in Addis Ababa, shall produce letter
of authority either from the patriarch or general
manager Addis Ababa Diocese secretariat;
 Churches located outside Addis Ababa shall produce
letter of authority from the patriarch to open and
operate the account;
 Valid and renewed I.D. card of the authorized
signatories
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 Documents Required - Cont…
Islamic Religious Institutions
 Obtain a letter of authority signed by the
chairman of Ethiopian/regional Islamic
Affairs supreme council ;
 Valid and renewed I.D. card of the
authorized signatories.

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 Documents Required - Cont…
The Ethiopian Catholic Church
 A letter of authority from the secretary general of the Ethiopia
catholic secretariat to open and operate bank account;
 Valid and renewed I.D. Card of the authorized signatories.

The Ethiopian Evangelical Church Mekane Yesus

 A letter from the president of the Ethiopian Evangelical Church
Mekane Eyesus Central Office to open and operate bank account;
 Valid and renewed I.D. Card of the authorized signatories.

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 Documents Required - Cont…

Other Religious Organizations

 Certificate of registration from the Ministry of Justice or
Federal (Regional) court offices and operated by individuals
delegated by the respective religious organizations’ local
branch as indicated in their Memorandum and Articles of
Association and supported by letter from their head office;
 Valid and renewed I.D. cards of the authorized signatories
are required.
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 Documents Required - Cont…
Accounts for Minors/Gamme Junior Account
 Proper application of the guardian for the minor;
 Court decision for the appointment of the guardian for the
minor if any;
 ‘Kebele’ I.D. card,
 Birth Certificate of the minor from concerned government
organ or church or municipality or hospital, etc.;
 Proper address of the applicant/guardian.
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 Documents Required - Cont…
Accounts for Interdicted Persons
 The ruling by a court of law pertaining to the
interdiction;
 An official letter from the court ordering appointment of
a Tutor;
 Two recent photograph of the parent/tutor and the
interdicted person;
 Valid and renewed ID cards of the Tutor and the
interdicted persons.

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 Documents Required - Cont…

Account for a Firms under Liquidation

 The document containing a court’s ruling with regard to the
company’s bankruptcy;
 The court’s decision pertaining to the liquidation of the
bankrupt company;
 An appointment of the liquidator by the court and the legal
power given to her or him for the purpose; and
 The ID cards of the authorized persons.
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 Documents Required - Cont…

Account for Share companies under

Formation
 A letter of authority from the licensing body should
have to be presented;
 A valid and renewed ID card of the person
authorized to operate the account.

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 Documents Required - Cont…
Account for Firms under the Process of
Registration
 A letter of authority from the licensing body will have to be
presented.
 A valid and renewed ID card of the person authorized to operate
the account. However, the account will be blocked until they are
presented the Investment license and Principal registration.
 If their request fails, the balance should be released up on
presentation of a letter of consent from the licensing organ.
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 Documents required for FCY account

Embassies
 Permit from the National Bank of Ethiopia –NBE;
 An application letter which states manner of operation signed
by the head of the delegation (Ambassador);
 Diplomatic ID-card or passport of A/c signatories.
Diplomats
 Permit from the National Bank of Ethiopia –NBE;
 Application letter;
 Diplomatic ID-card or passport.
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 Doc. Req. for FCY acc. – cont…

International Organizations
 Permit from the National Bank of Ethiopia –NBE;

 Application letter;

 ID card or passport of account signatories.

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 Doc. Req. for FCY acc. – cont…
Foreign Investors
 Permit from the National Bank of Ethiopia –NBE;
 Memorandum of Association (for companies);
 Article of Association (for companies);
 Registration certificate;
 A letter which states manner of operation and signed by
the person for whom the mandate is given by article of
association (for companies);
 ID card or passport of account signatories.

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 Doc. Req. for FCY acc. – cont…
Non Governmental Organizations (NGOs)
 Permit from the National Bank of Ethiopia –NBE;

 An application letter which states manner of

operation from the head office/regional office of
the organization;
 ID card or passport of account signatories.

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 Doc. Req. for FCY acc. – cont…
Expatriate Staff of International Organizations
 Permit from the National Bank of Ethiopia –NBE;
 Application letter;
 Valid and renewed I.D. card from employer organization, or
deriving license, or passport or Trade license;
 Letter from the employer which confirm that the earning is
paid in foreign exchange.

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 Doc. Req. for FCY acc. – cont…
Non-Resident Companies
 Permit from the National Bank of Ethiopia –NBE;
 Memorandum of association;
 Article of association;
 Registration certificate;
 A letter which states manner of operation and signed by the
person for whom the mandate is given by article of association;
 ID card or passport of account signatories.

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 Doc. Req. for FCY acc. – cont…
 Non Resident Ethiopian and Foreign Nationals of
Ethiopian Origin
 Application;
 Valid passport and/or identification card;
 Certificate of ownership entitlement for the organization and/or
article and memorandum of association.;
 Application duly authenticated by the Ethiopian Embassies,
correspondent banks or remittance service providers which proves
their identities;
 Two or more eligible depositors may jointly open a single account;
 The foreign currency accounts are to be maintained in USD, EURO,
& POUND STERLING only.
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 Doc. Req. for FCY acc. – cont…
Exporters
 Application letter

 Trade license
Recipients of Inward Remittances
 Application letter

 Valid and renewed I.D. card from employer organization, or

deriving license, or passport or Trade license.
 Evidence which certifies that the applicant is a regular recipient
of foreign exchange
07/12/2024 CBO - Customers' Account & Operation Technichal Training 118
 Revision questions
Identify and list the required documents to open an
account for each customer type?
Individual customers
Cooperatives
Idirs
Partnership
Private limited company
Share companies
Association and Clubs

07/12/2024 CBO - Customers' Account & Operation Technichal Training 119

 Lunch
day two

07/12/2024 CBO - Customers' Account & Operation Technichal Training 120

 ACCOUNT OPENING & CUSTOMER
CREATION

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 ACCOUNT OPENING & CUSTOMER
CREATION

Customer Creation/Account Opening:

 It is the process of encoding customer record based on
the details on the account opening application from;
 New customer ID can be created only if the customer has
no account in any of the networked branches of the CBO;
 It involves contractual agreement made to make business
dealing;
 It is a crucial stage where you cross selling/up-selling &
make first impression.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 122
 ACCOUNT OPENING & CUSTOMER CREATION
– Cont…

Customer can present the account opening

request:
 Through any of CBO Branches or,
 Customers’ Account Sub Process at the Head Office
when:
i. Opening of multiple /many/ accounts in
different branches needed;
ii. The accounts to be opened is/are for special
purposes, ECX Accounts and be operated by
different signatories.

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 Duties and Responsibilities in the Account
Opening Process

CSO-Maker
 Attends customer at the counter, Interviews & cross sells the
bank’s products;
 Receives the relevant documents from the customers;
 Ascertains/check in delinquent list/mal-operation list (lf the
account is C/A or Special SA);
 Guide customers on how to fill the account opening
application form;
 Checks that the required documents are properly filled out
and signed by the applicant;

07/12/2024 CBO - Customers' Account & Operation Technichal Training 124

 Duties and Responsibilities – Cont…

 For blind or illiterate customers, use right hand thumb print,

attests by “signed before me” stamp;
 Educate the customer how to use the cheque & the
responsibilities expected from him by referring NBE directives
& regulations if the account to be opened is CA or Special SA;
 Fills the account number on the deposit slip, opening
application form and cheque requisition slip;
 Introduces customer’s account to the computer system;
 Writes his/her name and signs on the application form;

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 Duties and Responsibilities – Cont…

 Collects the cash or instrument to be deposited;

 Puts stamp on the face of the deposit voucher and puts
his/her initial;
 Delivers the passbook, welcome note and receipt to the
customer;
 Scan the customer’s signature and relevant particulars as
soon as the customer leaves the branch;

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 Duties and Responsibilities – Cont…
CSO-Checker
 Ensures the documents are properly filled and the presented
documents are genuine.
 Ensures the customer is not in the mal operation list(for CA or
Special SA);
 Types or write the necessary particulars on the passbook (for
savings account),
 Co-signs on all the account opening documents;
 sign & Puts crossing stamp on the affixed photo of the
passbook (for savings account);
 Check and confirm scanned signatures

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 Duties and Responsibilities – Cont…

SCSO - Accountant
 Processes cheque requisition as per the cheque
processing and Handling Procedure;
 If the documents presented need further
authentication, requests further authentication from
concerned organs.

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 Duties and Responsibilities – Cont…

Branch Controller
 Collects all the opening documents
 Post-checking opened account (done as per the
procedure?);
 Checks mal operation list;
 Performs the due-diligence (verifies address & validity of
ID & license from the respective organs);
 Signs on the documents for the correctness and accuracy;
 Opens new mandate file in the name of the account and;
 keep the application letter and relevant copy documents:
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 Opening of Fixed Time Deposit Account

Whenever opening a Fixed Time Deposit account:

 The customer will be interviewed by the Branch Manager or CSM;
 Interest rate negotiation discretion shall be:
 Up to Birr 10 million by Finance Process;
 10 million – 100 million by VP - Finance and Trade Services
with the input from ALCO;
 Above 100 million by the President with inputs from ALCO.
 Filling the fixed time application format and sign the agreement;
 collecting deposit amount & providing certificate of Deposit;
 Account opening procedure is followed account creation &
posting.

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 Opening of ECX Account
 CASP is a single point of contact for ECX account opening;
 Member should not be in mal-operation/Delinquent list.
 Letter to open an account is forwarded by ECX to CASP
which clearly indicates:
 ECX Member type
 ECX Bank account required (member, client pay-in, member
client pay-out);
 Branch selected by the member
 CASP instructs the branch to open the ECX member type
account;
 For pay-in account Member presents PA, giving the sole right
of debiting the account by attaching ECX member certificate;
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 Opening of ECX – Cont…
 The opening branch shall immediately send two
copies of signed (completed) PA, copy of trade
license, article and memorandum of associations
along with the account number opened;
 The original PA shall be delivered to the principal
(ECX Member) upon its completion at the branch;
 The CASP communicate ECX the account opened.

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 Tea break
Day two afternoon

07/12/2024 CBO - Customers' Account & Operation Technichal Training 133

 Opening of Overdraft(OD) Account

 OD approval LAF;
 The necessary contract/agreement;
 Collateral registration;
 Opening the account as per approved Limit,
interest, expiry date and etc.);
 At the end of every the month checks whether OD
of credit balance is transferred to the liability
account or not.
 The normal procedure of loan follow up should be
made;
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 Special Types of Accounts Opening

Joint Accounts
 Customers sign jointly on the application form;

 The number of account holders should not be more than

three;
 Agreement's should be signed incase of ” and/or” account;

 Application form is marked as a “joint account,” or as an

“and” account, or as an “and/or” account.

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 Special Types of Accounts Opening – Cont…

Earmarked Account
• It is opened in the name of the account holder, followed by
of other descriptions with double quotation “ ” .
• Example
• Gutu Tola ”SMART Cafe & Restaurant ”
• Beka Hundessa “Sunrise Supermarket”
• it should be having personal reference or connection

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 Special types of accounts opening – cont…

Accounts for Interdicted Persons

 Designated by a court of law as being incapable of discharging
her/his legal rights, or be interdicted.
 The court normally appoints a guardian for the person.
 Opened and operated by the guardian appointed.
Staff Accounts
 A staff can open both savings and current accounts
 A staff’s account should be treated like all other individual
accounts.
Indemnity account

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 NEGOTIABLE
INSTRUMENTS

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 OBJECTIVES
At the end of this section, trainees will be able to:
 Understand the meaning of negotiable instruments;

 Identify the types of endorsement and their peculiar nature;

 Identify the valid and acceptable negotiable instruments

presented either for payment or collection/clearance.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 139

07/12/2024 CBO - Customers' Account & Operation Technichal Training 140
 Negotiable Instruments
 It is a document guaranteeing the payment of specific amount
of money, either on demand, or as a set time, with payer
named on the document.
 Cheques, CPOs, Promissory notes, bills of exchange, bank
notes & drafts.
A bankable negotiable instruments can be
transferable(endorsable)
 Negotiable instruments mostly used in our country banking
today are:
 Cheques, Bankers’ cheque/CPO & Drafts

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 Negotiable Instruments – Cont…
Cheque
 It is an unconditional order in writing, signed by the drawer
requiring the bank/drawee to pay on demand a sum of certain
money to, or to the order of a specified person or to the bearer;
 Parties involved in a cheque transaction are:

Drawee - the bank

Drawer - Account holder

Payee - Beneficiary

07/12/2024 CBO - Customers' Account & Operation Technichal Training 142

 Negotiable Instruments – Cont…

A Cheque shall contain the following features:

 The name and logo/emblem of the issuing bank;
 The name of the issuing branch;
 The date on which the check was issued;
 The name and account number of the account holder;
 The amount of money shown in both words and figures;
 The check’s number; and
 The signature of the account holder.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 143
 Negotiable Instruments – Cont…
Precautions to be taken by the customer:
 Keeping blank cheques in a safe place under lock & very neat(clean);
 Not twisting & wriggling;
 Writing cheques in ballpoint pen;
 Writing amounts in words and figures closer to the printing;
 Any alteration on the cheque should be confirmed by the full signature
of the drawer;
 Signing & Writing every descriptions in the appropriate space provided;
 same calendar date of the language in which the cheque is written.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 144

 End of Day two

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07/12/2024 CBO - Customers' Account & Operation Technichal Training 146
 Negotiable Instruments – Cont…
Types of Cheque Endorsement
 “Self "endorsement:- this cheque is endorsed by the drawer;
 “Cash or Bearer”: this cheque is endorsed by the presenter;
 “Specified Person”:- this cheque is endorsed to a specified
person(can be re-indorsed).
 Specified Person followed by the word “only” or “payee only”
 Cheque is issued in the name of any Organizations (Government
or Private); will be paid by crediting the beneficiaries account.
 And if the organization do not have an account at the Bank, it will be
paid to the person appointed by the organization with a letter signed
& sealed.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 147

 Negotiable Instruments – Cont…

 cheque issued to a joint account /order of two individuals, payees

are identified and are asked to endorse cheque(s) drawn in their
favor;
 cheque issued in the name of alternative individuals, may be drawn
by any one of the individuals & if endorsed must be identified and
be asked to endorse the cheque(s) drawn in their favor;
 Crossed Cheques are not at all paid in cash but they must be
deposited in to the account of the payee;
 The Restricted Negotiability of a Cheque –the crossing may contains
words like “Payable to account,”/“Account payee only,” which limits the
cheque from further transferability.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 148

 Negotiable Instruments – Cont…

Valid Reasons for Dishonoring /Returning of a

Cheque are:
 When the balance is insufficient to meet the value of the
cheque;
 When the account is closes before the cheque is presented
 When there is difference in signature of account holder;
 When there is cheques sent for clearance (deposit in transit).

07/12/2024 CBO - Customers' Account & Operation Technichal Training 149

 Valid Reasons for Dishonoring /Returning of a Cheque …..
…

 When there is lodgment of stop payment;

 When cheque is post-dated or outdated/stale

 When there are discrepancy which creates suspicion as to

the its genuineness;
 Where endorsement is not in order (Endorsement
Irregular);
 When the account is blocked by legal representatives or
hairs;
07/12/2024 CBO - Customers' Account & Operation Technichal Training 150
 Valid Reasons for Dishonoring /Returning of a Cheque

 When an undated check is presented;

 In case a mutilated cheque is presented (torn into two
or more pieces) and if the main contents of the cheque
are illegible;
 In case of joint account signatories/corporate
customers, in the absence of authorized signatures.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 151

 Tea break
Day three Morning

07/12/2024 CBO - Customers' Account & Operation Technichal Training 152

 Brainstorming

What is CPO?

07/12/2024 CBO - Customers' Account & Operation Technichal Training 153

 Negotiable Instruments – Cont…
Banker’s Cheque/Cashier’s Payment
Order (CPO)
 It is a cheque guaranteed by a bank, drawn on
the bank’s own funds and signed by the bank
officers;
 It is treated as a guaranteed fund
 It is an endorsable payment instrument.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 154

 Stop Payment Order
 Is a request made by the customer to the bank not to pay a
check;
 the account holder can only be enacted if the check or
payment has not already been processed by the recipient;
 The stop-payment amount will not be withdrawn until the
account holder gives, in writing the cancellation;
 There must be sufficient fund in the account that covers the
value of the check requested to stop payment;
 The stop payment order shall be cancelled upon the expiry
date of the check or by the court order.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 155

 Stop Payment Order – Cont…

 It shall be released if the drawer fails to produce police evidence

within 15 working days that show the cheque was lost or stolen;
 In overdraft account case, the amount of money on the check shall
be kept by deducting from the limit of the over draft account;
 The necessary particulars needs to Incorporate into the system are:
the check’s number, amount of money involved, date on which it was
issued & name of the payee/beneficiary;
 The record will be kept until the account holder revokes the request.
 The branch controller handle & follows up the status of Stop payment
order.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 156

 Brainstorming

What is Insufficient Fund/Balance?

07/12/2024 CBO - Customers' Account & Operation Technichal Training 157

 Insufficient Cheques

 Cheque without the availability of sufficient

fund/balance in the cheque account,
 It is a cheque without having balance of the amount
written on the cheque.
 The bank dishonor such cheques;

07/12/2024 CBO - Customers' Account & Operation Technichal Training 158

 Insufficient Cheques – Cont…
Subsequent actions taken by the Banks for NSF Cheques
 It is treated as per NBE Directive No. SBB/64/2016:

First Instance
 Record the incident for the first time in the NSF Cheque Register;

 Restrict all debit (outgoing) transactions against this account until

the dishonored cheque is fully paid to the payee or equivalent

amount is blocked pending the payment to the payee.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 159

 Insufficient Cheques – Cont…
Second Instance(Second Time within 12 Consecutive
Months)
 Return the cheque & provide NSF to the payee;
 Record the incident for the 2nd time in the Register;
 Restrict all debit (outgoing) transactions against this
account until all the cheques which have been
dishonored are fully paid;
 Levy a fine of 3% of the amount appearing on the cheque
dishonored for the second time but not exceeding Birr
25,000.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 160

 Insufficient Cheques – Cont…
Third Instance (within 24 Consecutive Months)
 Return the cheque & provide NSF to the payee;
 Record the incident for the third time;
 Close the account, levy a fine of 5% of the amount
appearing on the cheque dishonored for the third time but
not exceeding Birr 50,000.
 Collect all unused cheque leaves & pads from the drawer &
 Report same to CASP to close such persons account in all
CBO branches and report to NBE.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 161

 Insufficient Cheques – Cont…

 If two or more checks are presented on the same time

action shall be taken accordingly with the sequential order
of checks even if the reminder is not received by the
customer.;
 The SCSO-Accounts is responsible to register on the
system the returned check unpaid due to NSF.

NB: Please, refer the whole NBE directive No. SBB/64/2016

for more information.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 162
 Lunch time
Day three

07/12/2024 CBO - Customers' Account & Operation Technichal Training 163

 COLLECTION

07/12/2024 CBO - Customers' Account & Operation Technichal Training 164

 OBJECTIVES
At the end of this section, trainees will be able to:
 Give a clear understanding on the process of cash
deposit transaction;
 Identify the various ways of processing non cash related
transactions;
 Give an introductory overview about the process of the
existing cheque clearance system and the new Cheque
Truncation System (CTS).
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07/12/2024 CBO - Customers' Account & Operation Technichal Training 166
 COLLECTION
It is amount of fund deposited/received from the
customer to credit any customer account or internal
account in the form of:
 Cash
 Cheques
 Banker’s cheque/Cash Payment Order(CPO)
 Draft, and
 Fund transfer.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 167

 Collection - Cont…
Important points in Collection of Cash for Deposit
 Filling cash deposit voucher with the relevant information
 Receiving the cash by denomination against the deposit slip along with
passbook (if any);
 Checking all the necessary information including amount in words &
figures.
 Counting the cash as per the denominations written on slip;
 Properly writing detail of the depositor in the Narration Space;
 Finally Crediting the customer’s account by debiting cash.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 168

 Collection - Cont…

 Authorization as per discretionary limit:

 Updating the Passbook balance if any;
 Handed over computer generated deposit slip to the customer &
keeping bank voucher for balancing and recording;
 Hand over to the branch controller for further checking & filing of
the voucher.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 169

 Collection - Cont…
General Conditions for Money Transfers
 The bank accepts transfer request of customers either
in cash or by instruction to debit customers’ account;
 Transfer can be from account maintained in CBO to
another account or to be paid in cash;
 All Cheques/CPOs which are received for transfer of
money to other account should beer crossing stamp.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 170

 Collection - Cont…
Collection process of Cash for Local Money Transfer:
 The customer fills application form of local money transfer;
 Checking and confirming the details in the application form.
 Beneficiary name;
 Amount to be sent;
 Remitter’s /sender/ name;
 Address of the beneficiary and remitter
 If the transfer is from account, the performer will debit
customer account after verifying the account holder’s
signature against the specimen signature .
07/12/2024 CBO - Customers' Account & Operation Technichal Training 171
 Collection - Cont…
 If transferor is organization /firm, the application letter
should be presented only by delegated person;
 Printing computer generated customer & bank advice,
signs on the tickets, puts cash stamp after collecting
the amount to be transferred including, bank charge
and commissions;
 Hand over customer advice along with the secret code
to the customer separately/Sending through SMS;
 Authorization of the transaction based on limit.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 172

 Collection - Cont…
Account to Account Money Transfer process Using
Cheque or Application Letter
 Writing the account number and name of the payee on the face
of the check;
 OR presenting application letter requesting transfer of money by debiting
 Checking proper presentation of the application;
 Writing transverse(cross) line across the face of the cheque ;
 Making the necessary verification & confirmation of the cheque or
 By the application letter debiting the account holders’ account &
crediting the account to which the customer requested to transfer.
 Authorizes based on the limit set.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 173
 Collection - Cont…
Collection process of CPO/Bankers’ cheque
 Receiving the money transfer application form from the customer;
 Checking every particulars therein ;
 Verifying the signature (if the customer is account holder);
 Incorporate/insert the details into the system;
 Receives cash/debit customer’s account including the commission;
 Forwards the application letter to the CSO-checker;
 Receives the Bankers’ cheque/CPO from the CSO-checker,
 Prints the draft / CPO after confirming that the cash has been received or
the appropriate account has been debited;
 Co-signs on the prepared Bankers’ cheque/CPO,
 Makes the remitter sign at the back of the file copy and;
 Provides the instrument to the customer.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 174
 Collection - Cont…

Cash Collection on Sales of Foreign Cash Currency

Activities performed in branches are:-
 Receiving travel documents (passport and air ticket) and
authenticating the letter of application;
 Collecting the local currency equivalent in cash or debiting from the
customer’s account;
 Paying the customer with foreign currency notes;

 Writing the amount sold and the air ticket number on the pass port
and put the bank stamp;
07/12/2024 CBO - Customers' Account & Operation Technichal Training 175
 Collection - Cont…

Collection of Negotiable Instruments for Deposit

 Other local banks cheque customers’, payment is facilitated
through clearance system;
 We use payment and settlement accounts maintained at NBE;
 CBO keeps mirror/replica/ accounts in its payment and
settlement account at NBE for proper recording and control.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 176

 Collection - Cont…
On us cheque to be Deposited to other Customer
Account:
 Collect the check from the depositor (no need to fill cheque
deposit slip);
 Check the proper presentation, authenticity and completeness
 Verifying the drawer signature,
 Posting both the debit and credit entries,
 Authorization based on the limit;
 Print the credit advise and hands over to the customer;
 Forwards to the Branch Controller after balancing them.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 177

 Cheque Clearing System
 It is the process of moving a cheque from one bank to the other bank
for clearing;
 It results in a credit to the account at the bank of deposit, and an
equivalent debit to the account at the bank on which it was drawn.
There are Two Common Cheque Clearing Approaches
1. Document based approach - The presenting bank collects the
cheque and send the physical cheque to drawee bank through the
clearing bank/ institution;
 Paper to Follow – more advanced type of document based
approach, sending an image and data through electronic media
in addition to physical cheques.

07/12/2024 N.B. this approachCBO

Currently applied
- Customers' Account by
& Operation Ethiopian
Technical Training Banks 178
 PAPER TO FOLLOW APPROACH
Finance process ATS team send
Branch receive from Branch dispatch cheque &CPO along
the physical instruments to other
customer other bank with claim ticket to Finance process
banks
cheque and CPO after scanning

Branch forward the return cheque to

Other banks return/reject Finance Process return the customer after collecting the deposit
Checks/CPO the CPO and check CPO and check to the receipt from the customer
returned/ specifying the reasons branch by deducting it from
rejected OBC ticket /claim (Customer signature may be
required)

Branch Debit H.O

Other bank Respective bank account and credit
Finance process Debit P&S
Checks/ debit customer P&S account will be
mirror account and Credit customer account
CPO or its CPO debited with credit
respective branch account
accepted Account of CBO P&S

PAPER TO FOLLOW APPROACH PROCESS FLOW

CBO - Customers' Account & Operation Technical Training
07/12/2024 179
 Tea break afternoon
Day three Afternoon

07/12/2024 CBO - Customers' Account & Operation Technichal Training 180

 Brainstorming

What do you know about Cheque

Truncation System?

07/12/2024 CBO - Customers' Account & Operation Technichal Training 181

 Cheque Clearing System – Cont…

2.Cheque Truncation System

 It is a settlement or clearing of transactions on the
basis of images and electronic data without the
physical movement(without Paper to follow) of the
instruments.

 It stops the process of moving physical cheques ;

07/12/2024 CBO - Customers' Account & Operation Technichal Training 182

 Cheque Clearing System – Cont…

CTS…
CTS allows Banks to truncate cheques at the “point of capture” by
“paying bank” electronically and process return cheque
electronically;
 The presenting bank is responsible for ensuring the genuineness
of the cheque and retain the physical cheque;
 The issuing banks have the right to request the presenting bank
and access the physical cheque retained at the presenting bank

07/12/2024 CBO - Customers' Account & Operation Technichal Training 183

 CHEQUE TRUNCATION SYSTEM

Branch receive from Drawee Bank check the

Branch Scan the checks and Send the
customer ,other bank image and appropriate
image to drawee Bank through
Cheques action Pay or reject the
Clearing bank
transaction

If accepted by the Payment & Settlement(P&S) acc.of

specified clearing time Drawee dr. and P&S of presenting
Customer’s Account will bank CR.
be credited

If rejected ,the check

returned for the customer

07/12/2024 CBE-CATS TRAINING 184

 CHEQUE TRUNCATION SYSTEM

07/12/2024 CBO - Customers' Account & Operation Technichal Training 185

 Benefits of CTS
 Quicker clearance,
 Eliminates fear of loss of cheques
 Protect from cheque fraud
 Cheque clearing on the scanned image
 Presenting Bank store the Physical Cheques

07/12/2024 CBO - Customers' Account & Operation Technical Training 186

 New Cheque Development in Ethiopia

There would be two types of Ethiopian

Cheques:
1. Business Cheques(Include Banker’s
Cheque/CPO): issued to customers having
demand accounts(checking accounts).

2. Personal Cheques : which will be issued to

07/12/2024
customers having special saving account.
CBO - Customers' Account & Operation Technical Training 187
 Collection of Negotiable Instruments for
Deposit
Paper to follow Approach/Document based
approach (existing procedure)
 Other bank cheque and CPO presented to branch;
 Branch scans & send physically to H/Office Finance
Process for further clearing process;
 Finance process checks every particulars & sends the
physical instruments to other banks.
(Exchange at NBE Payment & settlement)

07/12/2024 CBO - Customers' Account & Operation Technical Training 188

 Collection of Negotiable – Cont…

 If Returned/Rejected
 Other banks specify the reasons for rejection;
 Finance Process return to the branch by deducting it from claim;
 Branch return to the customer after collecting the deposit receipt.
 If it is Accepted by Other Bank
 CBO Payment & Settlement Account maintained at NBE will be
credited by affecting other bank.
 Finance Process Debits Payment & Settlement mirror account
 and Credit respective branch account ;
07/12/2024 CBO - Customers' Account & Operation Technichal Training 189
 Collection of Negotiable – Cont…

Special clearance
 Amount above birr 200,000.00 should not take more than 6
working hours.
 The status of the cheque should be followed by respective
customer account;
 Any delay should be sort out by communicating the
respective other bank;
 All the work process must be altered accordingly.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 190
 End of Day three

07/12/2024 CBO - Customers' Account & Operation Technichal Training 191

 PAYMENT

07/12/2024 CBO - Customers' Account & Operation Technichal Training 192

 OBJECTIVES
At the end of this section, trainees will be able to:
 Identify different types of payment instruments;
 Understand the process and precaution when payment is effected
from Saving or Current account and via Local Money Transfer;
 Differentiate the different money transfer agents working with the
bank and procedure in effecting payment;
 Understand the feature of CPO/Bankers’ cheque and handling of
lost instruments.

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07/12/2024 CBO - Customers' Account & Operation Technichal Training 194
 Payment
Payment can be defined as the action/process of paying
someone something.
It can be effected by means of:
Cheques
Bankers’ cheque (CPO)
Demand Draft
Withdrawal voucher (for saving account)
Fund transfer
Money Transfer(local& foreign remittance).

07/12/2024 CBO - Customers' Account & Operation Technichal Training 195

 Payment of Local Cheques

CSO-Maker(Focus points)
 collecting ID if the payee/beneficiary is other
account holder;
 Checking genuineness and completeness of the
cheque;
 Identifying/ verifying the customer signature;
 Posting transaction after checking the balance;
 Effecting Payment ;
Putting stamp and initials;
07/12/2024
Authorization within discretionary limit;
CBO - Customers' Account & Operation Technichal Training 196
 Payment of Local Cheques – Cont…

Checker/CSM/
Checking the correctness and
completeness;
Authorizes based on the authorization limit
assigned for.
Branch controller
Checking the proper payment &
completeness of the transaction and retain
the physical document.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 197
 Payment through Incoming Clearance of
Cheques/CPOs for City Branches

 Other bank presents scanned cheques copy on the

EATS and Physical cheque;
 Finance Process dispatches in scanned copy on the
EATS and Physical cheque;
 The branch Receives after checking against the
summary report;
 Branches rejects checks for any major irregularity within
the specified time on EATS.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 198
 Payment through Incoming Clearance –
Cont…

 Checks the genuineness and completeness of the cheques;

 Rejects on the system for returned cheques by specifying

the reason:
 The authorized staff approves the returned cheques on the
system;
 Preparing returned cheques summary report and dispatch
to Finance Process.

07/12/2024 CBO - Customers' Account & Operation Technical Training 199

 Payment through Special Clearance for City
Branches

 MT103 SWIFT messages are used to effect payments

from one Bank to another Bank customer.
 The message includes only customer to customer
transfers.
 The Bank affects payments presented through special
cheque clearance with value greater than Birr
200,000.00.(RTGS)
07/12/2024 CBO - Customers' Account & Operation Technichal Training 200
 Payment through Special Clearance for –
Cont…

Focus points on MT-103 Special clearance

 Verifying the other banks signature signed

 Authenticate the cheques presented and post the cheques in

“Input MT103 Outward Remittances - Cheques “menu;
 Making sure about the inputted transaction details, holding it in
order to check for the 2nd time then “commit”;
 Writing ‘posted’ on the face of the check and singing on it, Sign on
attachment by writing the time received;
 The checker co-sign and/or authorization.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 201
 Withdrawal from Savings Account

CSO- Maker Focus points

 Checking withdrawal voucher is properly filled and
signed;
 If the customer is blind :
a. Presence of two witnesses one from the Bank
and other from the customer’s side is needed;
b. The witness shall sign on the withdrawal
voucher for confirming the transaction.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 202

 Withdrawal from Savings Account - Cont…

 If the customer is illiterate make sign by right hand

thumb print & attest by "signed before me” and
initials on it;
 Checking the name and account number written are
identical;
 Identifying the customer and verifying the signature;
 Posting the transaction and paying the amount;
 Authorization based on the limit;
 Putting the “Cash paying stamp” and Initials;
 Delivers the passbook & cash to the customer;

07/12/2024 CBO - Customers' Account & Operation Technichal Training 203

 Payment Against Local Money Transfer

Front maker focus points

 Receiving code(secrete) No. along with ID from
beneficiary;
 Making the necessary confirmation & identification;
 Passing transaction entry
 Authorization based on limit;
 Generating payment ticket ;
 Identifying the customer and the customer signs on
it;
 Effecting payment.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 204
 Payment Against Local Money Transfer – Cont...

• For lost or totally forgotten security number,

no payment shall be effected immediately. But
processed as per the operation procedure.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 205

 Brainstorming

Mention Money Transfer

Organizations (MTOs)
Currently Working with CBO
with their Code Digit?

07/12/2024 CBO - Customers' Account & Operation Technichal Training 206

 PAYMENT AGAINST FOREIGN MONEY TRANSFER

 Money Transfer Organizations

(MTOs) currently working with CBO
are:
 Western Union,
 Money Gram,
 Express money,
 Dehabshill,
 Kaah Express,
 OSOB, BAKAAL, Asgori, Trans Fast,
Juba express, Ria, Amana express,
Taran express, Amal express, IRMAAN
& Send wave.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 207

 Money transfer agents – Cont...

• Major money transfer agents with their Code Digit numbers;

s.no. Money transfer Code
agents
1 Western Union 10
2 Express money 16
3 Money Gram 8
4 Dehabshill 10 (First three letters & 7 digit
nos.)
5 KAAH 10 (First three letters & 7 digit
nos.)
6 Trans Fast 13 (33TF/AM1122334)
07/12/2024 7 AsgoriCBO - Customers' Account & Operation Technichal11(first
Training ASG & 8 digit no.s) 208
 Bankers’ Cheque/CPO Payment

CPO Payment
 Properly examining the authenticity and the proper
presentation of the instrument;
 Payees’ endorsement before payment is made;

 Properly verifying, identifying and retention of ID card

copy;
 Expired CPOs should be authorized by authorized person
before its payments.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 209
 Bankers’ Cheque/CPO Payment – Cont.

CSO- Maker focus point

 Checking its proper endorsement
 Identifying the payee properly;
 Signature verification;
 Obtaining confirmation for offsetting tracer;
 Posting entry;
 Effecting payment;
 Authorization based on limit and;
 Putting “paying stamp” and initials.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 210
 Payment of Lost CPO/Bankers’ Cheque

In the reported loss of CPO;

 Branch circularizes the loss of the instrument through CASP to all
branches;
 Customer presents an undertaking letter to re-fund of the
proceeds for any causality;
 If it is an organization it should be sealed & signed.
 If the beneficiary and remitter are different persons or
organizations, present the other party’s consent in writing its
objections;
 Approval of the payment of limit should as per the described in
the Bank’s CA&O manual.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 211

 Tea break
Day four morning

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 Other Issues in Account
Management
Outline
 Treatment of inactive accounts
 Account closure procedures
 Stock and negotiable instrument handling
 Standing instruction handling
 Bank statement
 Blocked account and blocked amount
 Change of signature
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 Brainstorming

What are Inactive Accounts?

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 Treatment of Inactive Accounts

Inactive accounts
 Dormant account for a period of 6 consecutive months
regardless of their amount with no movement.
 Can be reactivated by showing a minimum of 3 transactions
within three months other than interest related transactions;
 Inactive CA with a balance of less than Birr 100 are subject to
service charges;
 Inactive SA for more than two years with a balance of less
than Birr 50 must be closed by transferring the balance to
other income sundries;
 Authorization is requested for deposit to/withdrawal from
inactive accounts.
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215
 Account Closure
Reasons for Closure of Accounts may be:
 Customer’s request;

 Loss of passbook/check;

 Court order;

 Death , bankruptcy and insanity of the account holder;

 After consecutive deduction of service charges for inactive current

account;
 Due to mal –operation (for current accounts);

 Failure to maintain the minimum balance on SA opened with zero

balance within one month.
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 Account Closure – Cont.…
During account closing :
 The Branch must interview the customer;
 Feed back is very important to take corrective measures;
If closure is inevitable :
 Collect Pass book or unused checque;
 If it is lose of passbook collect declaration form and evidence;
 Check there is no wrong debit or credit;
 Collect service charge, if any;
 Initiate the closing process, effect payment or transfer balance and
 Forward the passbook/unused check to CSM for proper
authorization and to senior branch controller for proper
documentations;
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 Custody and Handling of Negotiable Instruments and
Passbooks

 Stocks are kept under the custody of

SCSO-Accountant/CSM/Branch Managers;
 All negotiable instruments and passbooks must have register
books;
 Cheque book is issued in the name of customer up on customer
request by the SCSO- Accounts after it is personalized &
prepared signing on check book delivery register book.
 Passbooks are delivered to back office checker after checking
proper utilization of previous issued passbooks;
 CPO/Bankers’ cheque is issued as requested by a customer.

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 Standing Instruction
 All standing instruction must be given in writing
and be signed or be authorized by the
Standing customer who gives the instruction;
 It should be handled by branch SCSO-
instruction Accountant/CSM;
 Once it has been received from the customer it

!
will remain valid for un indefinite period of time
unless the customer cancels the instruction;
 It should be attached to the customer’s
account file.

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 Bank Statement
 Customer statement is issued to the customer by
Branch Controllers;
 Can be collected physically or print their own
statement through confirmed online (internet
banking) system;
 Should be collected within one month by the end
of every month without any charge;
 Otherwise they shall pay per page as per the
terms and tariffs set by the bank.

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 Blocked Account and Blocked Amount

Blocked Account :
 An account subject to any transaction restricted either by
account holder or third party (court, ERCA, Anti corruption
office, etc).
 It may restrict debit from/ credit to the account;
Blocked/Frozen Amount:
 cash or customer account of which withdrawal restriction is
imposed.
 To waive, either the customer or third party consent must be
lodged in writing to authenticate the release document;
 Branch Manager/CSM/SCSO - Accountant should handle
those account to freeze/unfreeze as per the instruction given.

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 Change of Signature/Signatories
Reasons for change of signature:
 When there is a difference between current and
previous signature;
 When an illiterate account holder becomes
literate;
 There may for another various reasons of their
own;
 Request should be lodged by the customer in written
application;
 Frequent change of signature should be discouraged.

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 Lunch time
Day four

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 CASH MANAGEMENT

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 Objectives
At the end of this section, trainees should be
able to:
 Recognize important precaution in daily cash
management;
 Know the detail process in opening of daily
cash operation;
 Understand the procedure in handling cash
during the day;
 Appropriately close daily cash operations.

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 Brainstorming

What are the Precautions

to be Taken during Cash
Management?

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 Responsibilities & Precautions to be Taken

 Always be accurate, focused & attentive(alert) in

keeping and controlling cash:
 example; side talking, using mobile phone,
earphone and other similar devises are
interruptive.
 Keep adequate cash to meet immediate
requirement;
 Ensure cash limits are always kept at a minimum;
 Aware of forged/counterfeit notes & detection
methods;
 Close blank spaces before and after on vouchers;
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 Responsibilities & Precautions to be Taken – Cont…

 Register any cash shortage and excess in cash register

book;
 Evidencing Handing and taking over of cash by authorization
& or signature;
 Avoid buildup of surplus cash(both in counter & sorting
table);
 Avoid keeping cash at counters;
 Keep cash locked in drawers on occasion to leave the area.
 keep all the keys with oneself;
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 Cash management
Responsibilities & Precautions to be Taken – Cont…

 Before posting make sure the value and appropriate

account has been posted;
 Recording cash denominations paid/received;
 Reminding customers to check/count before leaving the
counter;
 Stick to the customer’s first preference in providing
denominations(don't entertain the cash denominations change
after making payment),

N.B. Please, refer to the concentration & security procedure

for cash operation in CA&O manual of the Bank for
additional information.
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 Opening of Daily Cash Operation
At the start of the daily operation:
 The CSO collects the cash box from the vault ;
 Opens the cash box in front of the SCSO-Cash to confirm the
existence of petty cash (the cash leftover in the box from the
previous day), together with the personal cash brand/stamp.
 Consequently the CSO takes the cash box to its cage,
 Opens the computer and verifies the amount of the petty cash
transferred through the computer against the previous day’s
record &
 Confirms the receipt of the amount by Authorize till transfer;
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 During the Day’s Cash Operation

Request for Additional Cash by CSO-Maker

Based on the cash holding limit during day operation,
 Front Makers requests the amount and denominations needed;
 Collects the money after counting and ascertaining its correctness;
 Confirm the receipt of the money by Authorization on the system.
Transfer of Excess Cash by CSO-Maker to SCSO-Cash
 After balancing & Sorting the cash in bundle & based on
denominations;
 Transfer till & surrender the amount to the SCSO-Cash according to
the denominations(Till to Till transfer);
 The SCSO-Cash authorizes on the system the receipt of the money.
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 Closing of Daily Cash Operations

Day End Closing by CSO-Maker

 Amalgamates the cash on hand in bundles & Loose
notes according to the denomination &;
 Balances the overall cash:
 Petty Cash (beginning) + cash received from
customers + cash received from the table – cash
paid to customer – cash sent to the table = cash on
hand
 Transfers the remaining deposit and payment vouchers at
hand to the branch controller attaching the batch total.

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 Closing of Daily Cash Operations – Cont…

Day End Closing by SCSO-Cashier

 Accepting cash from the CSO-Maker at the table after checking;
 Confirming the receipt of the amount by authorization of till
transfer;
 Balancing the total cash transaction against the CSOs balance;
 Writing the daily debit and credit balances on the cash book;
 Co-sign cash book with cash supervisor (CSM/Branch
manager);
 Transferring cash lodgment to vault along with the petty cash
box jointly with the Branch Manager CSM.

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 Closing of Daily Cash Operations – Cont…

A cash discrepancy
 Shortage or excess involving Birr 1000.00 and
less shall be recorded in the cash discrepancy
register book and be reported to the Branch
Manager;
 The branch manager & controller should report
to respective district & concerned H/Office
organs.
 The discrepancy should be dealt & ascertained
as per the procedure.

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 Keys Management
Custody of keys
 All the Bank’s keys should be registered in the
key Register book & signed by all handling
personnel;
 Transfer of keys needs to be duly recorded in
the register, against signature of holder;

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 Keys mgt…
Duplicate Keys
• Duplicate Strong room doors and safes of
branches must be held by the respective districts;
• “Combination-Code” of cash vault doors/safes
should be sent to the respective district;
• Other duplicate branch keys are handled by the
branch manager.

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 Keys Mgt….
Lost Keys Replacement
 Lost keys should be reported immediately;
 All costs incurred as a result of a key
replacement will be paid by the employee who
lost the key or keys;
 Lost strong room door or large safe key must
be totally replaced by a new.

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 Tea break
Day four after noon

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 Resource Mobilization

Financial perspectives of strategic objectives are:

Custom
Strategi Financi
er 1) Increase profitability and market share
c al 2) Increase financial resources mobilization
3
objectiv 3 presp. 3) Improve financial soundness
presp.
es
perspec Increase Financial Resource mobilization
tives of
CBO I. Increasing local deposit mobilization
Internal II. Increasing FCY earning
Learnin III. Raising Paid-up capital
busines
g&
s
Growth
Process
4 presp.
3 presp.

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 Increase Financial Resource mobilization

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 Benefits of deposit mobilization

The Bank mobilizes deposit for the following

benefits:
For lending/borrowing the fund
For investing in profitable business not
prohibited by NBE Directive

From lending(loans) the Bank generates

interest income & from the investment the
bank generates return on investment.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 242
 Local deposit mobilization
Local deposit is mobilized through deposit
products like: saving, demand & fixed time
deposit from depositary customers.
This can be done by:
 Convincing customer at the counter;
 Cross-selling the Bank’s products;
 Money tracking;
 Door to door services/Cash Pick up Service
 Referral marketing;
 Stakeholder relationship.
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 Benefits of FCY Mobilization
When the Bank mobilizes FCY it assist the
Bank:
• For local deposit mobilization
• It is major source of income for the Bank
commission income from import business
Income from exchange of currency

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 Foreign currency mobilization
• FCY mobilization can be performed through:
Export
 Remittance service
 cash purchase
SWIFT
 Export financing- providing loan for exporters
& in return getting inflow of foreign
exchange/currency through proceeds.

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 Remittance
• Remittances are transfers in the form of goods or
money that migrants send back home to their families. The
• Many people in the developing countries depend upon chea
p
the remittances received from their families abroad. & ho est
ttest
• Remittances play a huge role in developing cake
our t in
countries' economy, individual households, and able
businesses.
• It represents one of major international financial
resources, which sometimes they exceed the flows of
foreign direct investment (FDI)

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 The benefits of Remittance
Remittance has multiple benefits to the bank.
These are:
e st  It generates FCY for the Bank;
h
T pe f  The bank earns commission income from the MTO
e a o
ch urc e Agents for delivering the service;
so FCY  The bank will cross sell its bank products;
 It gives the opportunity to mobilize deposit from the
beneficiaries of the Remittance.

07/12/2024 CBO - Customers' Account & Operation Technichal Training 247

 Remittance in Ethiopia
YEAR Nationally FCY generated FCY earned by CBO Percentage share
through remittance(formal channel) from remittance service of CBO
2014/15 3 Billion USD 45.7 million 1.5%
2015/16 3.7 Billion USD 38.2 million 1%
2016/17 4 billion USD 47.6 million 1.2%

 There are about 40 MTOs operating in

Ethiopia but ,
 Western Union, Money Gram,
Why?
Dahabshil, and Boleatlantic are the
bigwigs taking up the lion’s share of the
remittance business.
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 FCY Cash purchase
 FCY cash purchase is one way of FCY
Mobilization.
 Purchasing FCY is done after detecting the
genuineness/reality of the currency by detecting
machine or other means of detection like using
marker intended for this purpose.
 Above all knowing Security features is very
important to detect the currency (you can goggle
each of the security features all currencies)
 Currently FCY purchased by the Bank are US
Dollar, Pound sterling, Euro , Dirham & Saudi raid

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 SWIFT
 SWIFT(Society for World Interbank Financial Telecommunication)- It
provides a network that enables financial institutions worldwide to
send & receive information about financial transactions in a
secured, standardized & reliable environment.
 It is a means of directly transferring/crediting account worldwide
through correspondent Bank account.
 Diaspora accounts are mostly credited directly trough this transfer
system.
 Branches are expected to know the SWIFT code of the bank
(CBORETAA) along with the correspondent banks account.(dollar,
CBORETAA
euro & pound sterling)
 Our Trade Service process will update Correspondent Banks
account.
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 Raising Paid-up Capital
• It is a total amount of capital funded
by the Bank’s share holders/It is the
maximum a capital that a company is
allowed to raise through the sale of its
shares.
• It is a means of Financing the Bank.
• Healthy paid up capital reflects
corporate brand & image of the Bank.

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 Benefits of higher paid up capital

• It is an essential instrument in Highe

r
strengthening the financial stability of the paid u
p
capita
banking sector. streng l
then
• They insure that the Bank is in a better stabil
ity of
position in absorbing risks. the Ba
nk
• It builds a good image for the bank.
• When there is higher paid up capital, it
makes easy for engaging in higher
projects like fixed asset
acquisition(capital goods like building)
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 Alternative channels of Banking
 Alternative channels of banking is the recent
methods of carrying on Banking operations.
 This channels are ATM, POS Terminals,
Internet Banking , Mobile Banking, Agency
Banking & etc.
 The future is digital banking –there will be an
emerging paradigms that will get stronger over
the near future.
 In the future branches will be opened for
specialized purpose only.
 Be first to change with the changing technology.
07/12/2024 CBO - Customers' Account & Operation Technichal Training 254
 End of day four

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 FORWARD

PLEASE READ THE ENTIRE CA&O

PROCEDURE
OF THE BANK FOR MORE
UNDERSTANDING

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