Commercial Bank of Ethiopia

Retail and Branch

Banking Operation

08/05/2025
LET’S GET TO KNOW EACH OTHER
• Introduce you self to the participant

about:
o Name
o Field of study
o Your value
o Why Bank?
o Career aspiration in CBE
TRAINING ENGAGEMENT NORMS
Arrive On Time
Avoid Absence ( Attendance)
Put your Mobiles on Silent Mode
Share Your Practical Experience
Listen To Others
COURSE OBJECTIVE
• Upon the completion of this course, Participants will be
able to:-
• Understand the alignment of corporate strategy with
Retail and Branch Banking
• Distinguish types and feature of CBE product and
Digital channels with eligibility criteria
• Perform cash and non-cash collection and payment
process as per the procedure.
• Handle proper profile Management
• Apply essential knowledge and skill for account opening
& closing, and contract termination process
management.
Contents
I. CBE’s Overview
• CBE profile and Corporate Identity

II. Corporate Strategy Overview

• CBE Vision, Mission and Value

• Strategic Pillars
• Customer segmentation and CVP
Content

III. Deposit product , Service and Digital channels

• Deposit Product, Eligibility Criteria and Required Documents

• Digital Chanel and Service
• Service
Content
IV. Account Opening

• Customer Acquisition and selling

• Customer due diligence
Content
V. Negotiable Instruments

• Features of negotiable instruments

• Endorsement
• Stop payment
• Insufficient Cheque
Content
VI. Collection
• Collection through Conventional Channels;
• Cash Collection
• Collection of Cheque or Bankers cheque
• Collection through MT 103
• Collection through Alternative Channels;
• Collection through Card on POS and ATM machines
• Collection through online banking channels
Content
VII. Payment
• Payment through Conventional Channels
• Cash Payment from accounts
• Local and Foreign money Transfer
• Payment through Fund Transfer/account transfer
• Payment of Negotiable Instruments
• Payment through Digital Channels
• Payment through Cards and Online Banking
• Payment through CBE Birr
Content
VIII. Cash Management Overview

• Peculiar Nature of Cash

• Components of Cash Management

• Branch Cash Planning

• Branch cash operation Process
• Refund Excess Cash
• Deteriorated and Counterfeit Notes Handling
• Key and Combination Code Management
Content
IX. Profile Management

• Change of Signature
• Customer Name Change
• Power of Attorney
Content
X. Branch Banking Business contract Termination

• CBE Birr Services Termination

• Termination of Card and Online Banking Services
• POS Merchant Contract Termination
• POS Displacement /Removal
I. CBE’S OVERVIEW
 CBE’s Overview
• In March 1905 - Bank of Abyssinia “the first bank” was established
in Ethiopia ( private bank British owned by the National Bank of
Ethiopian Banking History Egypt.
• On 29th August 1931 - it was purchased by Ethiopian government;
established as Bank of Ethiopia.
• In 1935 Bank of Ethiopia ceased to function due to fascist invasion
and it was closed by Italians in 1936
• 1936-1941 banks were established in the main towns of Ethiopia by
Italian e.g. Banco di Roma, Banco di Napoli
• From 1941 to 1942 - Barclays‟ Bank was operated as foreign banks
in the country
• On August 1942 – the first largest bank - state Bank of Ethiopia was
established functioned as the principal commercial bank and acted
as the central Bank of Ethiopia
• On 30th November 1943 - it was published on charter, full operation
and issue bank notes and coins

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15
 CBE’s Overview
• In 1963 - state bank share incorporated and classified in to three Banks
- CBE, DBE, CBB and the function of commercial and central
Ethiopian Banking History banking separated
• In January 1964 – NBE began operation & CBE took over the
commercial banking activities
• In 1974 - declaration of socialism
• In 1976 - the three private owned banks, Addis Ababa Bank, Banco di
Roma and Banco di Napoli Merged to form the second largest Bank in
Ethiopia called Addis Bank
• August 2, 1980 Addis Bank and Commercial Bank of Ethiopia S.C.
were merged & form the sole commercial bank
• In 1991- Dergue regime was Replaced by EPRDF & it declared a
liberal economy system
• In 1994 - the first private bank, Awash International Bank was
established

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 CBE’s Overview
Functions of commercial Bank of Ethiopia

Primary functions Secondary functions

• Are Principal Functions • Are CBE’s Services
• These are • Ancillary/Auxiliary Functions
1. Accepting of Deposits • These are Categorized in to
2. Lending
1. Agency Functions
3. Investment
2. General Utility Functions

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17
CBE’s Overview
Group Discussion

Discuss:
The corporate
Brand elements and
attributes of CBE
CBE’s Overview
Corporate Identity Elements of CBE

Corporate
Name
Jingles Corporate
(Sound Logo
Branding)
CBE CORPORATE
IDENTITY
ELEMENTS
Corporate Corporate
Flag Motto

Corporate
Colours
CBE’s Overview
Corporate Identity Elements of CBE

i. Corporate Name
ii. Corporate Motto
 It is the name of the
“ሁሌም የሚተማመኑበት ባንክ”
Bank
“The Bank You Can
 It shall be written in
Always Rely on”
golden with black
background

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CBE’s Overview
Corporate Logo and its components

•The coin expresses that the Bank is a

financial intermediary
•The intertwined net inscribed around the
coin shows:
The Bank’s wide branch distribution where
customers can easily reach them
CBE’s working towards achieving regional
and global presence
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CBE’s Overview
Corporate Colors Combination
It indicates the Bank’s robust wealth, high
service quality, reliability, premium service
Golden or clarity of vision, mission, values and
strategy

It shows the Bank’s originality, its being

Black pioneer in premium customer service delivery,
and that it is the successor of the first bank

It shall be applied with other colors for

advertisement and decoration to attract and
Purple is used as flag color, paper head and
becomes background anywhere
CBE’s Overview
Corporate Flag
• Corporate flag of CBE flies at the Head office,
branches and during events.
• The Background of the flag shall be purple and bears
the corporate logo in golden color.
• The corporate flag flies alongside the national
and/or regional flags

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CBE’s Overview
Brand Elements

• Jingles (Sound Branding)…used in all radio and television

commercial ads.

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II. CORPORATE STRATEGIC
OVERVIEW
CORPORATE STRATEGIC OVERVIEW
Group Discussion

Describe and Discuss

CBE Vision,
Mission, values
and strategic Pillar.
 CORPORATE STRATEG OVERVIEW
Vision
To Become a World Class
Commercial Bank financially driving
Ethiopia’s future.

Further, CBE should aspire to

become a customer-centric bank

27
 Going forward, the term ‘world-class’ can be elaborated to
mean modern and efficient along the following parameters:

• Overall size including metrics such as assets, loan book,

operating income
• Level of digitalization including metrics such as share of active
customers on app/mobile money, share of transactions outside
the branch, level of manual processes within the bank
• Operational efficiency including metrics such as return on
equity and cost-to-income ratio
• Risk efficiency including metrics such as NPL ratio and provision
coverage
• Organisation health including metrics such as retention,
promotion, and employee engagement
• Brand positioning and impact including metrics such as
customer satisfaction (CSAT) and financial inclusion

28
29
CORPORATE STRATEG OVERVIEW
Mission
“We are committed to realizing
stakeholder’s value through enhanced
financial intermediation globally,
deploying highly motivated and
skilled employees.”

30
31
Corporate Profile No. of Customer
37.9 M
No. of Staff Deposit
70,000
Position 890.1
Billion

Total Asset Capital

1.2 Trillion 59.11 Billion

Profit Before No. of Branch

Tax 27.5 Billon 1,824
Customer Segmentation
Customer
There is only one boss, and whether a person shines shoes for a

living or heads up the biggest corporation in the world, the boss

remains the same. It is the customer! The customer is the person

who pays everyone’s salary and who decides whether a business

is going to succeed or fail. In fact, the customer can fire

everybody in the company from the chairman (CEO) on down,

and he can do it simply by spending his money somewhere else.

Literally everything we do, every concept perceived, every

technology developed and associate employed, is directed with

08/05/2025
this one objective clearly in mind – pleasing the customer.”
33
Customer Segmentation

• It means the approach of classifying a large and diverse

customer of the bank in to smaller groups based on related
traits in order to identify and choose the most profitable
customer groups to focus on.
Bases of Customer Segmentation

• All individual customers that do not partake in

formal/licensed trading activities shall be classified as retail
customers whereas trading individual and non-individuals
shall be classified as wholesale customers.

• Further the two main customer segments based on their

existing or potential value generating capacity are sub-
segmented as follows:
Customer segmentation

Wholesale Retail
customers Customers

Public &
Institutional Affluent

Corporate Middle

SME Mass

Micro
Enterprise
Customer Value Proposition
Product Leadership
• Providing product that continually redefine the
state of art

Customer Intimacy
• Segmenting and targeting market and then
tailoring offering to match high value customers

Operational Excellence
• Providing customers with reliable product or
service at competitive price, delivery with minimal
inconvenience.

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37
CULTURE

38
• Generally it refers to the shared values and beliefs in
society

• It is learned and passed through generation

• It shapes every part of our lives, personality, values

and way of living

• Culture is a pattern of behaviours and values that are

transferred from one generation to another,

39
Organizational Culture
• Is the collection of values, expectation and practice
that guide and inform the action of team members

• Every organization culture is different, however the

culture of high performing ones consistently reflects
certain qualities: ….

40
 Organizational Culture…(cont)
1. Alignment Companies obj=Employee motivation
2. Appreciation Team members contribution is recognized
3. Trust Expression of new ideas and relaying on others
4. Performance About talented employees excelling
5. Resilience Responding to a changing world(proactive)
6. Teamwork Collaboration, Communication and Respect
7. Innovation Creative thinking to all aspect
8. Psychological Safety Its all about the employee

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 Values

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 Who are you?
&
How much do you
worth?

43
What comes to your mind when you
think about value?
Values (Cont….)
• What's important to you in life?
• If you could have any career, without worrying about
money or other practical constraints, what would you do?
• When you’re reading news stories, what sort of story or
behaviour tends to inspire you?
• What type of story or behaviour makes you angry?
• What do you want to change about the world or about
yourself?
• What are you most proud of?
• When were you the happiest?

45
 Values…
• Imagine that some years from now your very-great-
grandchildren find an article about you in news
paper; what does the article would say about you?
What kind of person were you? What did you do with
your life? Why were you interesting to be stated in
the paper?
• In one paragraph write what the article tells the
audience about your values.

46
 Values
Overview of Value :
• (Guy,1990) are beliefs about what is fundamentally desirable

• Our values affect our decisions, goals and behavior.

• Is a standard for discerning what is good and just

• Values define what is the most important thing in our life

• Values are standards to guide your action, judgments, and attitudes.

August 5, 2025
47
 Values...
Overview of Value…
• What you choose to do with your time also has everything to do
with what you values.

• Values give direction and consistency to behavior.

• Values establish a relationship between you and the world.

• Values set the direction for one’s life.

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48
 how do you relate your values with
the bank value? Are they relatable?
 CORPORATE STRATEG OVERVIEW
Core Values INTEGRITY

CORPORATE SERVICE
CITIZENSHIP EXCELLENCE

RESPECT CORE PROFESSIONALISM

FOR
DIVERSITY VALUES

TEAMWORK
EMPOWERMENT
INOVATIVE
ORGANIZATION

50
III. DEPOSIT PRODUCTS,
DIGITAL CHANNELS AND
SERVICE
DEPOSIT PRODUCTS
The Role of Resource Mobilization
• One of the crucial functions of financial institutions or banks to satisfy
one of the requirements of a "banking business", i.e. sourcing of funds
or borrowing money from customers.

• mobilization of deposits is an important source of working fund for the

bank and it is an indispensable factor to increase the sources of the
banks to serve effectively.

• A continuous function for a bank to ensure the sum total of deposits at

any time adequate to maintain the current level of lending and
investments especially to compensate the withdrawals made by
depositors.
DEPOSIT PRODUCTS
The Role of Resource Mobilization

• In general, the ability to provide the relevant financing is

dependent on the ability of the banks to mobilize adequate
amount of deposits in the economy and other foreign
sources of funding.
DEPOSIT PRODUCTS

Conventiona CBE Noor

l Banking deposit
deposit Product
product
LCY deposit LCY deposit
Product product

FCY deposit
product

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DEPOSIT PRODUCTS
Conventional Vs. CBE NOOR Banking

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DEPOSIT PRODUCTS
Group Discussion

Discuss and present:-

• Deposit Product with their Feature

• Eligible entities and required

documents to open an account
 Ordinary saving
DEPOSIT PRODUCTS Women saving
teen Youth saving
Youth saving
Local currency deposit Product Education saving
• Saving deposit Mortgage saving
Army Saving
• Demand deposit Wedding Saving
Holiday Saving
• Fixed time deposit Tatary Saving

Ordinary demand deposit

ECX related accounts
OD Account
Foreign currency deposit product Z-account
• NRT FCY
• NRT BIRR
• NRNT BIRR Diaspora demand deposit
• FOREIGN EXCHANGE RETENTION Diaspora fixed time
• Diaspora non- Repartriable
DISPORA ACCOUNT

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 DEPOSIT PRODUCTS
Common Features of saving deposit product
 Its interest bearing

 Maintained by physical and legal persons who can fulfill

the requirements of the Bank.

 It is operated by passbook

 A minimum amount has to be kept on saving account is

Birr 100 and possible to open with zero balance

 It could be operated by using Digital Banking Channels

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DEPOSIT PRODUCTS
Ordinary Saving Account

• No restrictions on the number and amount of deposit and

withdrawals
• It is operated by passbook , Card, MB and IB

• A minimum amount has to be kept on saving account is Birr 100

and possible to open with zero balance

• Pays an interest of 7%
 DEPOSIT PRODUCTS
Ordinary Saving Account

Eligible person
•Individuals / natural Persons
•Legal persons
•Minors (through the parents or Tutor)
•Interdicted persons (through Tutor)

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 DEPOSIT PRODUCTS
Women Saving Account
• It can be opened individually or jointly

• Cooperatives and/or associations having Above 50% women members

• It provides 7.125% interest rate

• Account holders enjoy a discount on goods and services from the

suppliers who have agreement with CBE

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 DEPOSIT PRODUCTS
Women Saving Account

Eligible person

Women Saving
• Individual women
• Various associations
owned by women with
more than 50% share
• Minor women (through
parents or tutors)
• Interdicted women
(through legal guardians)

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 DEPOSIT PRODUCTS
Youth Saving Account
• It is offered for individuals in the ages of 18-24

• It shall be converted to ordinary saving account when the account

holder reaches the age of 25
• It provides 7.125% than ordinary saving account

• Can be operated with voucher, Debit Card, mobile and internet

banking application/ system

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 DEPOSIT PRODUCTS
Youth Saving Account

Eligible Person
• All individuals whose age is

Youth Saving
Account
greater than or equal to 18 and
less than 25 years old
• Individual trade operators
• Interdicted persons (legal
guardians)
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DEPOSIT PRODUCTS
Teen Youth Saving Account
• It is designed for individuals in the ages of 14-17

• Self-employed/employed teens between the ages of 14-17 years

• It can open and operate this account by providing letter of

confirmation from the Zone or Woreda administration and school
administration

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 DEPOSIT PRODUCTS
Teen Youth Saving Account
• The parent(s) or the tutor of the teen youth can open

the account for unemployed teen or teen without own

source of income
• It shall be converted to ordinary saving account when

the account holder reaches to the age of 18

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 DEOPOSIT PRODUCTS
Teen Youth Saving Account
Eligible Person

Teen Youth Saving

• Individuals, Whose age is between
14-17

Account
• Minors (through the parents /Tutor/
Guardians)
• Interdicted persons (through Tutor /
Guardians)

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 DEPOSIT PRODUCTS
Education Saving Account
• It is designed for saving money for higher education up to
undergraduate programs
• It can be opened for any natural person by himself/herself and
for a minor by the parent(s)/tutors of the minor
• It may grant a seed fund or Scholarship award for those
customers regularly deposit for minimum of 12 Consecutive
months without any withdrawals

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 DEPOSIT PRODUCTS
Education Saving Account

Eligible person

Education Saving
• Individuals, classified as teen-youth,

Account
and 18+ years
• Minors through parents or tutor
• Interdicted persons through legal
guardian and

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 DEPOSIT PRODUCTS
Accounts for Minors Features
• It is an account opened for individuals below the age of 18
• It can be opened and operated by parents or tutors assigned
legally
• When the minor grew up and becomes major, it shall be
converted in to ordinary saving account and operated by the major

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DEPOSIT PRODUCTS
Mortgage Saving Account

A special saving account for the purpose of purchasing residential

house
 It is linked to 10/90, 20/80 and 40/60 government housing

projects
Withdrawals are not allowed, if not closed
DEPOSIT PRODUCTS
Army Saving Account

• Its opened for the Military members

• It is linked with housing skims constructed by Ministry of

National Defense
• At the end of every week all balances from this account will be

transferred to pool account

DEPOSIT PRODUCTS
Wedding Saving Account

• The account is provided for unmarried individuals who are above

18 years old.
• It helps to save money & meet wedding related expenses for new

couples planning to commence new life.

• Entertain a special offer from selected merchants in the form of

discount provided on home accessories and wedding expenditure.

DEPOSIT PRODUCTS
Wedding Saving Account

• The account can be opened individual, jointly or by

parents/guardians.
• The minimum opening balance and monthly deposit shall be birr

1272 & it can be opened with zero balance.

• Interest rate 7.5%

• Withdrawal is discouraged up to one year.

DEPOSIT PRODUCTS
Wedding Saving Account

• If Withdrawal of money done before one year the annual interest rate

should be adjusted for 7%.

• Customers of this account are entitled to lottery based wedding gift

annually.
• Whether the account holder gates married or not, the wedding saving

account shall be converted to normal saving account after five years of

operation.
DEPOSIT PRODUCTS
Holliday Saving Account

• Will serve to save for future events and reduce the problem of un

planned saving.
• Entertain a special offer from selected merchants in the form of

discount.
• The account holder should be deposit at least for 11 consecutive

months .
DEPOSIT PRODUCTS
Holliday Saving Account
• The minimum monthly installment should be Birr 150 but not more than Birr

10,000.-
• Minimum amount to open this account shall be Birr 150 and it can not be

opened with zero balance.

• The customer can be save up to Birr 100,000.- only;

• Entitled to 7.5% interest rate per annum.

• Any saving above Birr 100,000.- subject to ordinary saving interest rate( 7%)
DEPOSIT PRODUCTS
Holliday Saving Account

• The account holders are entitled to prize in the form of wallet card

• The wallet card will hold Birr 1000.- or 2,000.-

• Withdrawal before 11 consecutive months after opening an account

is restricted; withdrawal before this date is subjected to interest rate

conversion from 7.5% to 7% ( Ordinary saving interest rate)
DEPOSIT PRODUCTS
Tatary Saving Account

This is an account opened for employees of Industrial

parks as per the agreement of Industry Park, Investors,
employees of the industry parks and the CBE for mutual
benefit.
DEPOSIT PRODUCTS
Features of Tatary Saving Account

• Monthly deposit to this account is made by collecting

10% of employee salary from both employee and
employer; that is 20% of employee salary;
• The account is opened without passbook and; It is not
operated by voucher, digital channels.
• It is operated by fund transfer as per the instruction of
the employer company.
DEPOSIT PRODUCTS
Common Features Of Demand Deposit Account

• A demand deposit is an account with a bank that allows the

depositor to withdraw his or her funds from the account without

warning / on demand.
• It is a non interest bearing account

• It’s operated with Check.

• All demand deposit accounts shall be operated by literate

DEPOSIT PRODUCTS
Common Features Of Demand Deposit Account

• Thumbprint shall not be accepted to operate

• Charge is levied semiannually on the balance maintained below

500 birr and no movement for six months i.e. inactive).

• Remark -Branches under CBE shall not issued a Cheque till

KYC norms and document authentication are completed.

DEPOSIT PRODUCTS
Ordinary Demand Deposit Account

• It is a non interest bearing bank account.

• The minimum balance to be maintained for Br. 1000 to individual

and Br. 2000 to corporate customers.

• Opened and operated by literate.

• Cheque is not issued until KYC completed.

DEPOSIT PRODUCTS
Ordinary Demand Deposit Account

Eligible Person
• Individuals / natural Persons
• Legal persons
• Interdicted persons (through Tutor)
• Staffs of the CBE’s
DEPOSIT PRODUCTS
Overdraft Account

• It is a demand deposit account with augmented feature that allow

customers to withdraw money beyond their credit balance; and

• It can be withdrawn up to the approved limit;
DEPOSIT PRODUCTS
Zero Balance Account

• It’s an account opened to government office only with special

agreement with MOFED

• It’s like overdraft account but not paid any interest

• Crediting Zero balance account with any type of transaction is

forbidden
DEPOSIT PRODUCTS
ECX Related Account
• Member Pay in/Pay out accounts:

Opened by members who are trade operators of ECX

• Client pay in/Payout accounts:

Opened by intermediary members on behalf of client

• All ECX accounts opening, closing & Pay-out accounts

change of signature at branch are forbidden

 ECX is a special account opened for a member of ECX to facilitate

commodities like sesame haricot beans, maize, wheat and coffee trading
through out the country
DPOSIT PRODUCTS
ECX Related Account
At CBE Conventional Payment
 All ECX accounts opening & closure process is carried out by ECX Trading

written ordered letter

 Member/client pay in accounts (Buying accounts) can be debited with ECX

Trading ordered letter

 Pay-out accounts change of signature by ECX Trading written ordered

letter.
DEPOSIT PRODUCTS
ECX Related Account
At CBE Branches
• Pay out accounts (Selling accounts) can be debited at

branches through cheque and/or Standing instruction

• Client accounts are opened & operated by individual or

corporate Intermediary members

• A client can’t open the account but can exchange

commodities through member’s seat.

DEPOSIT PRODUCTS
A. Member Pay In B. Client Pay In
• Serve as payment guarantee • The account maintained by
to the buyer in the ECX members in behalf of their
trading floor client
• Used for payment against • Serve as depository
sales agreement b/n buying account only debited as
& selling parties or Traders per ECX instruction at CBE
• Members only deposit in this conventional payment
account • The member is legal owner
• The member signs power of but shall empower ECX for
attorney giving ECX sole right to ECX requesting debit
C.request
Member debits
Pay Out Accounts• NoD. Clientbook
cheque Pay&Out
Visa card
•• No cheque book & visa card
Used to receive payment • issued
Used to receive payment
issued
from Trading from Trading
• Member has exclusive right • Member has exclusive right
to withdraw & deposit funds to withdraw & deposit funds
& ECX will send electronic • cheque book & Visa card can
credit instruction issued
• cheque book & Visa card can
issued
DEPOSIT PRODUCTS
Fixed Time Deposit Account

• It is opened for a particular fixed period (time) by depositing

particular amount of money;

• The period of fixed deposit is greater than or equal to 3 months

• If customer requests any withdrawal before the maturity date, the

withdrawn amount shall be entitled to the prevailing saving

interest rate
DEPOSIT PRODUCTS
Fixed Time Deposit Account

• If the customer requests for a principal and interest rollover, it can

be rolled over to the next agreed period

• Minimum initial deposit is Birr 10,000.00 or USD 5,000.00 or its

equivalent in EURO or Pound Sterling

SPECIAL FEATUIRE OF ACCOUNTS
Special Type Accounts

These types of accounts are not considered as product by their

own merit rather they designed to meet special circumstances and
customer requests.
• Account for minors
• Joint Accounts
• Earmarked Accounts
• Account for interdicted persons
• Staff Accounts
• Cash Indemnity Account
SPECIAL FEATUIRE OF ACCOUNTS
Accounts For Minors

• It is a saving account opened for individuals below the age of 18

• The account shall be opened and operated by parents or legally

appointed tutor
• At time of reaching major will be operated by the major
SPECIAL FEATUIRE OF ACCOUNTS
Joint accounts
• Joints accounts shall be maintained in the name of two or
three individuals to jointly operate the account
• For and/or account opening, additional contract needed
• Joint accounts can be “And Account” and “And/or
• The nature of “And Account” is that all the parties should be
present at the counter to withdraw money
• “And/or” account type allows individual account holders to
withdraw money and give payment instruction separately
SPECIAL FEATUIRE OF ACCOUNTS
Earmarked Accounts

• The account is opened in the name of the account holder,

followed by of other descriptions with double quotation
 E.g.. Hailu Tessema “Mama Supermarket”

• Such accounts should be kept in the name or names of the

individual/s concerned—not in impersonal names

SPECIAL FEATUIRE OF ACCOUNTS
Accounts For Interdicted Persons

• It is an account opened and operated by the Tutor appointed by

the court on behalf of the interdicted person/s.

SPECIAL FEATUIRE OF ACCOUNTS
Staff Accounts

• Opened for CBE staff members and category shall be changed to

non-staff category codes when the staff leaves the bank; and
• Staffs are not allowed to process transaction of their own in the

system except in payment channels

SPECIAL FEATUIRE OF ACCOUNTS
Cash Indemnity Account

• It is account for staffs, who are engaged cash related activities and

entitled for cash indemnity allowance

• Withdrawals should be approved for settling cash shortage
Payments or may be effected to the account holding staff after one
year of leaving cash related post for which she/he was entitled the
cash indemnity.
 DEPOSIT PRODUCTS
Foreign Deposit Products and Service
FCY Cash Purchase
FCY Accounts
MTOs Remittance
FCY Products and SWIFT Remittance
Export
Services FCY POS, and ATMs
FCY Mobile Money
Foreign Cheques & Drafts

• Non Resident Accounts • Wadiya FCY Saving account

• NGOs and International
Non Transferable Accounts • Amana FCY current account org. Mortgage Loan
• Non Resident Diaspora • Wadiah Diaspora Mortgage Scheme
• Retention Account

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DEPOSIT PRODUCTS
Foreign Deposit Products Features

• The foreign-currency accounts are to be maintained only in

currency types of USD, Pound Sterling and Euro

• The source of fund is foreign currency from abroad

• In case of cash deposit sealed declaration form above 3,000 USD

or equivalent mandatory for foreigners and above 1,000 USD for

indigenous
DEPOSIT PRODUCTS
Foreign Deposit Products Features

• Persons living abroad can open such accounts in person or by

E-mail fax, telex or other electronic media.

• An individual and/or enterprise may open the foreign-currency

accounts
• The account can be maintained in hard currencies or Birr
DEPOSIT PRODUCTS
Foreign Deposit Products Features

• It cannot be opened by power of attorney but operate with power

• Local Payments to residents only in Birr

• An individual/ enterprise may open saving and current foreign

currency account only in one of the domestic banks, but it can be

opened fixed time deposit accounts in more than one bank
DEPOSIT PRODUCTS
Eligible Entities
• Embassies

• Diplomatic mission offices & staffs

• Members of International Community, Foreign charities

• Foreign investors

• Expatriate employees of international organizations

• International organizations and their organs

• Exporters & Recipients of inward remittances

DEPOSIT PRODUCTS
Eligible Entities

• Foreign staffs of the above organization holding either of

• Their diplomatic passport

• Laissez passer of their hiring/hosting organization

• Diplomatic or special ID given by MOFA

• Organizations should submit list of individuals empowered to operate the

account

• In case of embassies, delegations given by ambassadors

DEPOSIT PRODUCTS
Group Discussion

 Identify and discuss about

required documents to open :-

• Saving account
• Current Account
• Fixed time deposit account
• FCY accounts
REQUIRED DOCUMENTS
Acceptable Identification Cards

• Kebele Id Cards / Woreda Id Cards

• Farmers association Id Cards

• Employment and pension Id Cards

• School, College and University Id

• Driving License

• Tax Identification Id Cards

REQUIRED DOCUMENTS
Acceptable Identification Cards

• Passports/ Laissez passer

• Work Permits / Resident permits

• Foreign-nationals-of-Ethiopian-origin ID cards together with a

valid passports
• Ethiopian Community Id Cards
REQUIRED DOCUMENTS
Contents of Acceptable Id Cards

• The bearer full name

• Photograph

• ID number

• Issue and expiry date and

• Issuer name and issuer’s stamp

REQUIRED DOCUMENTS
Individuals (Natural Person)

• valid and renewed ID card.

• Authenticated letter of request shall be enough instead of

individual IDs in case of account opening based on letter of
request issued from corporate customers of the bank.
REQUIRED DOCUMENTS
Individuals (Natural Person)

• Tax Identification Number (TIN)

• Two recent passport size photographs for a savings account and

one for a demand deposit account

• For EDRMS, One photograph if there is no digital camera in the

branch
REQUIRED DOCUMENTS

Exceptions,
Teen-Youth Saving Account
• Student ID Cards

• Birth Certificates / Baptism Cards

• Letter of confirmation from the appropriate authority

REQUIRED DOCUMENTS
Minor Account

• A proper letter of application submitted by the Parent

• Birth Certificate

• A ruling by a court order appointing the lawful Tutor

• Valid and renewed ID card of the tutor or the parent

• Two recent photograph of the parent and the minor

REQUIRED DOCUMENTS
Accounts for Interdicted Persons

• The ruling by a court of law pertaining to the interdiction

• An official letter from the court ordering appointment of the Tutor

REQUIRED DOCUMENTS
Legal Person (Entities)

• A renewed trade license, principal registration and investment

certificate (for investors)
• Tax Identification Number (TIN)

• A Memorandum and an Article of Association

REQUIRED DOCUMENTS
Legal Person (Entities)

• A partnership agreement attested, registered and sealed by FDRE

Document authentication and Registration Office ( for

partnership)
• The minutes of the meeting of the Board of Directors held to

discuss the opening and operation of the account ( for share

company)
REQUIRED DOCUMENTS
Legal Person (Entities)

• A letter of request to open and operate the account, which should

be signed by the authorized person mentioned in the

Memorandum and Article of Association and bears the company’s
official stamp (except sole proprietor)
• Negarit Gazetta for public enterprises and state owned
universities/colleges
REQUIRED DOCUMENTS
Letter of instruction from respective higher organ
a) State owned colleges
b) Federal/regional budgetary institution
c) Ethiopian Orthodox Church,
d) Ethiopian Islamic affair Organization
e) Ethiopian Evangelical Church
f) Ethiopian Catholic Church,
g) Under formation /under process firms
REQUIRED DOCUMENTS
Cooperative Associations, Clubs Labor Union And
Other Religious Organizations
• A certificate of registration
• The approved and registered rules and regulations of the stated
organization
• Minutes of the most recently held meeting of the General
Assembly,
• Minutes of the Executive Committee (If Labor Union)
REQUIRED DOCUMENTS
Foreign Accounts
 Embassy & Diplomat

• A letter of application that states the manner of operation, signed by the head

of the delegation; if Embassy

• A letter of application which is signed by the ambassador or her/his

delegate; If Diplomat

• Diplomatic ID cards or passports of the signatories of the account

REQUIRED DOCUMENTS
Foreign Accounts
International Organization; Foreign Investors

•Permit from the NBE;

•A letter of application that states the manner of the operation from the

organization’s Head Office or regional office (If International charity)

•Registration Certificate or investment certificate (If foreign investors)

•Documentary evidence of legality and incorporation (If foreign investors)

REQUIRED DOCUMENTS
Foreign Accounts
Expatriate Employees of Int’nal Organizations

•A letter of application from the employee

•Valid and renewed ID cards from the organization that has employed them, or

driving/operating licenses, passports or trade licenses

•A letter from the employer, which confirms that her or his salary is paid in a foreign

currency
REQUIRED DOCUMENTS
Foreign Accounts
Non Repatriable-Diaspora
Non-Resident Ethiopians and Foreign Nationals of Ethiopian Origin
•Application forms
•For Ethiopians or foreign nationals of Ethiopian origin individuals,
valid passport and/or identification card (MOFA)
•For businesses; Certificates of ownership, entitlement for the
organization and/or Articles and Memorandum
REQUIRED DOCUMENTS
Foreign Accounts

Retention Accounts

Exporters & Inward Recipients

•A letter of application;

•A valid ID card from the employing Organization, a driver’s/operator’s license, a passport or a trade

license;

• Documentary evidence of legality and incorporation as per their formation,(If Companies )

•Evidence that the applicant is a regular recipients

 DIGITAL BANKING CHANNEL

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DIGITAL BANKING CHANNEL
Group Discussion

Identify and discuss the three

Major Categories of Digital
Channels
 Agent
Card Banking
Banking (CBE
(ATM, POS) Online Banking
Birr)
(IB & MB)

DIGITAL
BANKING
CHANNEL

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DIGITAL BANKING CHANNEL
Card Banking Business
WHAT IS CARD BANKING?

• Card banking is the act of paying

expenditures through payment cards.

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DIGITAL BANKING CHANNEL
Card Categories

• Cards can be categorized :

 In terms of payment In terms of technology
Debit card - Magnetic Stripe
Credit card - Smart/chip Card
Prepaid card - Contactless card/NFC
(Near Field Communication)

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DIGITAL BANKING CHANNEL
Types Of CBE Cards

Domestic Visa Debit Card- pay now

a. Visa Classic Women Debit Cards
b. Visa Classic Debit Cards
c. Visa Classic IFB & Selam Debit Cards
d. Visa Gold Debit Cards
e. Visa Platinum Debit Cards
f. Co-Branded Visa Platinum Debit Cards
DIGITAL BANKING CHANNEL
Prepaid Cards
CBE proprietary (Private Label) Cards
a. White Label Cards
b. Co-Branded prepaid Gift Cards
c. General Purpose Gift Cards (CBE Wallet & others)
International VISA Prepaid Cards
d. VISA Classic Prepaid Card
e. VISA Gold Prepaid Card
f. VISA Platinum Prepaid Card
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DIGITAL BANKING CHANNEL

Customers Can Get CBE Card Service

• Should have CBE account
• Present his/her renewed ID
• VISA card request entertain and can be recruited in any CBE online
branches when customers come physically

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DIGITAL BANKING CHANNEL
Online Banking (Mobile & Internet Banking)

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DIGITAL BANKING CHANNEL
Mobile Banking
It refers to the use of a smart phone

or other cellular device to

perform online banking tasks

while away from your home , such

as monitoring account balances,

transferring funds between

accounts and other

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 DIGITAL BANKING CHANNEL
Mobile Banking
Customers Can Get CBE MB Service
• Need to have any CBE Branch account
• Present his/her renewed ID
• Has to come physically at any CBE online branches and can
Subscribe to the mobile banking service

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DIGITAL BANKING CHANNEL
Internet Banking

It is an electronic service provided by the Bank to allow customer

to perform transactions, informational services etc. over the

Internet - through a bank’s secure website

• Types of Users -

1. Personal Internet Banking

2. Corporate Internet Banking

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DIGITAL BANKING CHANNEL
Internet Banking

Personal IB
• It is an internet banking channel that provides Commercial Bank of Ethiopia personal

clients with online financial services

Corporate IB
• It is an internet banking channel that provides online financial services targeting to

Corporate(company, NGO, organization.....etc.)

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 DIGITAL BANKING CHANNEL
The use of online (Internet & Mobile) Banking
• Own account transfer
• Real Time Account balance
• Pay to Beneficiary( pre-defined Beneficiary)
• Fund transfer b/n CBE account holders
• LMTS(Local Money Transfer Service)
• Exchange rates
• Loan repayment schedule
• View Standing order
• View Cheque Book Request/status
• View / download(.csv or html format) account statement.

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DIGITAL BANKING CHANNEL
Agent Banking (CBE Birr)

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 DIGITAL BANKING CHANNEL
Agent Banking (CBE Birr)

CBE named Mobile Money, Agent Banking (CBE Birr)

• Agent Banking- referred as mobile payment, mobile money

transfer, and agent banking services

• Mobile money transfer - LMTS and International Money Transfer.

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 DIGITAL BANKING CHANNEL
Agent Banking

• Mobile payment - Use of a mobile device to pay for any types of

goods or services purchased from merchants.

• Agent Banking - means facilitating of the banking service provision

to customers by an agent in the name and on behalf of the financial
institution

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DIGITAL BANKING CHANNEL
Available Services in CBE Birr

Cash In & Out Send Money Mobile Top-Up Int. Remittance

Utility Salary payment

Ticketing Buy G & S
Payment
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 DIGITAL BANKING CHANNEL
Advantage of CBE Birr Services
• 24/7 available service
• Withdraw or deposit money in nearby agent
• No need for a bank account
• Access financial service by mobile phone number
• A means for additional income for agents
• Suitable for many people with low income
• Suitable for many people with low literacy
• Reduce transportation costs and time due to close
proximity to multiple agents
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 SERVICES IN CBE
Secondary Functions
Categorized in to Utility Service & Agency Service

Utility Service Agency Service

 Traveler's cheques Collection and payment of credit
 Safe custody of valuable and securities instruments like cheques
, safe deposit box Execution of standing orders
 Facilitation of international trade Purchasing & sale of securities
Remittance , MTO
 Foreign currency exchange
Local & Foreign Money Transfer
 Muday Bank Service Salary payment , Utility Payment
 Cash pick up & Implant Tax collection
 Balance confirmation

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SERVICES IN CBE
Muday Bank Service

• It is a service offered by the bank to accumulate and save money in

designated box and deposited in to the respective customer account.
• the service provide by opening a new saving account or associate
with existing saving account.
• It needs contractual agreement between the bank and customer for
handling and delivering muday box.
SERVICES IN CBE
Muday Bank Service

• This service shall be provided by the bank with dual control.

• Muday Bank Service mainly designed for:
 petty traders,
semi-skilled workers,
small holding farmers,
shoe polishers and other similar individuals.
SERVICES IN CBE
Save Deposit Box Service

• It is an individual secured container or a metal box that

stays in the safe or vault of a federally insured bank
• Customers can rent it in order to keep valuables, legal
documents and other prized possessions in a secure
location.
• It has dual control; one key for the customer and the second
one for the bank.
SERVICES IN CBE
Save Deposit Box Service

• To have a Safe Deposit Box the customer should:

 maintain an account in the Branch.

Sign an agreement with the bank.

• The minimum period of accepting a safe deposit box shall be

one year and

• The maximum period for safe deposit box rental agreement is

nine years
SERVICES IN CBE
Save Deposit Box Service
• The rent shall be collected annually (one year rent only); the
customer should put standing instruction to settle his/her
annual service charge.
SERVICES IN CBE
Cash Pickup and Casher Implant Services

Cash Pick up service

• Shall mean a cash collection service provided for premium

and high value customers from their premises on pre-

arranged schedule and agreement.

• It is a collection service in the form of cash and other

negotiable instrument.
SERVICES IN CBE
Cash Pickup and Casher Implant Services

Cashier Implant Service

• shall mean service provided for high value customers by

assigning employee/s of the bank on the premises of high
value customer on the basis on contractual agreement
between the bank & high value customer.

• The practices could be in the form of cash, Cheque deposit,

Account to account transfer and Through POS machine.
SERVICES IN CBE
Cash Pickup and Casher Implant Services
For both Cash pickup and Cashier Implant
Manager Logistics and Operation is responsible to
facilitate the required resources and to select the
appropriate branch for the service

The Branch Manager reviews and concludes an

agreement for cash pick up service

The District director shall approve and assign of required

resource.
IV. ACCOUNT OPENING
PROCESS
ACCOUNT OPENING PROCESS
• Account opening involves contractual
agreement to make business dealing
with the customer with proper
identification through authenticated
documents
• It is a crucial stage at branch where
cross selling and up-selling activity
can be done
ACCOUNT OPENING PROCESS

Customer request for local currency account Opening

• At any CBE branches and service outlets

• At Conventional Payment for opening of more than one
account in different branches .
E.g. ECX and Government account
ACCOUNT OPENING PROCESS
Customer request for Foreign currency account Opening

• At International banking Service Special Branch

• At permitted branches of the CBE
• Through Ethiopian Embassies abroad
• Through FCY mobilization unit for remittance agent
• Through Financial Institutions Relationship unit of the
bank for correspondent bank
ACCOUNT OPENING PROCESS

Customer Acquisition

• All staff are ambassador for the bank to promote and sell
product and service at all time
• All Business team member in branch Primarily
responsible in customer account record and
maintenance
ACCOUNT OPENING PROCESS
Pass Book Replacement… Lost, Mutilated, Fully utilized

• Customer’s all Pass book replacement request shall be entertain at any

online CBE branches

• Front BBO take photocopy/scan of the first page of the pass book that
contain full information of A/c holder and send to SBBO through outlook

• The SBBO will also sent copy of old pass book to the original branch
through outlook
Replacement Of Pass book
Fully Utilized Free
Lost Birr 50.00
Damaged Birr 50.00
CUSTOMER DUE DILIGIENCE (KYC)
Customer due diligence information comprises the facts about a
customer that should enable an organization to assess the extent to
which the customer exposes it to a range of risks.

It aims to understand who your customer is. The KYC process

involves verifying customers' identity and address by asking them
to submit documents that are accepted as relevant proof.

According to NBE directive “Banks shall identify the customer

(whether regular or occasional, natural or legal person)

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 CUSTOMER DUE DILIGIENCE (KYC)
Know Your Customers KYC Norms
• According to NBE directive “Banks shall identify the
customer (whether regular or occasional, natural or
legal person)
• KYC insures that their client are not involved in
corruption, terrorist financing and money laundering
• KYC is the process of completely understanding your
customer

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 CUSTOMER DUE DILIGIENCE (KYC)
Benefits of KYC for Bank
• Helps to prevent fraud, corruption, terrorist financing and
money laundering
• Helps to check necessary requirements at the time of opening or
getting involved in business dealing
• Enables to know or understand their customers and their
financial dealings to be able to serve them better and manage its
risk prudently
• Helps in monitoring of transactions of their customers
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 CUSTOMER DUE DILIGIENCE (KYC)
Benefits of KYC for Customers
• Helps to build good image in banks;
• Helps to create good communication with banks;
• Helps to get proper information on time.

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V. NEGOTIABLE
INSTRUMENTS
NEGOTIABLE INSTRUMENTS
Group Discussion

Discuss:-
• List different types of negotiable instrument?
• List parties involve in cheque transaction ?
• List and describe means of restricting
negotiability/transferability of cheque ?
• List reasons to dishonor cheque by the bank ?
• Describe measure to be take by the bank for
those customers redundantly issue cheque
without sufficient balance ?
NEGOTIABLE INSTRUMENTS
Definition of Negotiable Instrument

A negotiable instrument is one which is transferable from the holder to the

other party through endorsement.
 The followings are most common types of negotiable instruments-:

• Cashier payment order/CPO/Banker Cheque

• Cheque
• Bond
• Draft
NEGOTIABLE INSTRUMENTS
Cashier’s Payment Order-CPO Bankers Chqeue

C.P.O is an endorsable payment instrument issued by the bank up

on request of a customer for specific purpose; like to participate in
bid, to effect payment to government offices mainly tax,… etc. link\
CPO
NEGOTIABLE INSTRUMENTS
Cheque

Cheque can be defined as

• An order written by someone, a “drawer “ directing the bank, the

“drawee “ to pay a specified sum amount on specific date to the

order of a certain named person(s)/organization ,the “payee “.
NEGOTIABLE INSTRUMENTS
Cheque

• Unconditional order in writing, signed by the drawer requiring the

bank to pay on demand a sum amount of certain money on specified
date to, or to the order of a specified person or to the bearer.
• The three parties involved in a cheque transaction are Drawer
(Account holder) , Drawee (the bank ) and Payee (Beneficiary)link\
cheque
NEGOTIABLE INSTRUMENTS
Major Contents/Elements of a Cheque

• Name and emblem/symbol/ of the issuing bank;

• Name of the issuing branch;

• Issued date;

• Name of the account holder and the account number;

• Amount of money shown in both words and figures;

• Check’s number; and

• Signature of the account holder.

NEGOTIABLE INSTRUMENTS
Essentials of Cheque

• Must be in writing

• Any alteration on the cheque should be confirmed by

the full signature of the drawer

• Must contain an unconditional order

• Signed by the drawer

NEGOTIABLE INSTRUMENTS
Essentials of Cheque

• Face of Cheque should show a Specified Bank, specific branch

name
• The order must be a certain amount of money
• Payee must be specified
• Payable on demand
 There are two types of Ethiopian Cheques

 Business cheque

 Personal cheque
NEGOTIABLE INSTRUMENTS

Business cheque

• Includes Banker’s Cheque (so far named in Ethiopia as

Cashier’s Payment Order-CPO);

• Shall be issued to PLCs, Corporation, Government entities,

NGOs, Business Men, etc.

Personal Cheque

• Shall be issued to individuals as per the interest of banks

e.g. Customer having special savings account at the bank
NEGOTIABLE INSTRUMENTS
Bond

• It is a debt instrument that certifies a contract between

the borrower (bond issuer) and the lender (bond holder)
as spelled out in the bond indenture.
• The issuer (company, government and municipality)
pledges to pay the loan principal (par value of the bond)
to the bond holder on affixed date (maturity date) and
affixed rate of interest for the life of the bond.
NEGOTIABLE INSTRUMENTS
Bond

• Bond is given to the buyer or bondholder in the form of

certificate or coupon.
• It is transferable in secondary market,
• An average maturity of a bond is said to range from 5 up
to 20 years; but based on a specific situation of
respective country it can be longer or shorter.
• Companies use bonds to finance acquisitions or capital
investment. E.g. GERD Bond
NEGOTIABLE INSTRUMENTS
Grand Ethiopian Renaissance Dam (GERD) Bond

GERD Bond
• Prepared in the form of interest bearing and non- interest
bearing coupon;
• Owned by the Government of the FDRE [Ministry of
Finance and Economic Development (MoFED)];
• Issued/supplied by Development Bank of Ethiopia (DBE).
NEGOTIABLE INSTRUMENTS
Grand Ethiopian Renaissance Dam (GERD) Bond

GERD Bond-Agents

• In Ethiopia
Commercial Bank of Ethiopia and other institutions to be
designated by the DBE; for respective commission rate of
up to 0.5%
• Outside Ethiopia
Ethiopian embassies and councilor offices and other
institutions to be designated by the Development Bank of
Ethiopia.
NEGOTIABLE INSTRUMENTS
Grand Ethiopian Renaissance Dam (GERD) Bond

Eligibility of the GERD Bond

• The coupon of the bond is invalid unless it has been

stamped by official Seal of the (MoFED), and

• If it does not have the signature of the Minster (MoFED).

Purchasing limit: of the GERD Bond

• Birr 50 Minimum limit in Ethiopia

• Birr 500 outside of Ethiopia.

• There is no maximum limit for purchasing.

NEGOTIABLE INSTRUMENTS
Grand Ethiopian Renaissance Dam (GERD) Bond

Interest rate of the GERD Bond

• If maturity period of 1-5 years shall be 7.5% Per annum

• If maturity period is more than 5 years shall be 8% per annum

• There are also non-interest bearing Bond ready for sale.

• Interest paid Semi-annually on June30 and December31.

• Interests earned on the GERD Bond is tax-free

NEGOTIABLE INSTRUMENTS
Endorsement

• Endorsement is defined as the signature plus any other

sign by which the endorser to transfer his rights to

someone else.
NEGOTIABLE INSTRUMENTS
Types of Endorsement

• A cheque drawn to cash or bearer can be paid to the

presenter.

• A cheque drawn to self can be paid to the drawer/the

presenter but must be first endorsed by the drawer.

• A cheque drawn to specific person followed by word only as

suffix shall be paid in cash or credited to his/her account

upon endorsement.
NEGOTIABLE INSTRUMENTS
Types of Endorsement

• A cheque drawn to joint account holder (or in the

name of two persons) shall be paid against their

endorsement.
• A cheque drawn to the order or alternative individuals

can be paid by the endorsement of one of the

individuals.
NEGOTIABLE INSTRUMENTS
Checks Issued in the Names of Organizations or Legal Entities

• Are transferable to other organizations or individuals if they

have been sealed and endorsed by signatories.

• If the check is endorsed to an individual, the last endorsee

should bring a confirmation letter from the payee/checks
issued in the name of organization or legal entities

• Check issued in the name of an organization by no means

should be paid in cash.
 NEGOTIABLE INSTRUMENTS
Restricted Negotiability Or Transferability Of Cheque

• The cheque is issued to the order of the specified

person followed by the word “payee only” is written on
the top left corner of the face of the cheque, only the
payee/beneficiary is allowed to cash/credit to account

• Crossed cheque bear two transverse lines across their

faces. They should be deposited into the accounts of
any beneficiaries/payees
NEGOTIABLE INSTRUMENTS
Restricted
.….. Negotiability Or Transferability Of Cheque

•In addition to the general crossing it contains words like “Payable

to account,” “Account payee only,” which limits the cheque from

further transferability and paid to beneficiaries account.
NEGOTIABLE INSTRUMENTS
Dishonoring /Return of Cheque
There are various reasons a cheque can be dishonored
• Account closes

• Drawers signature differ

• Endorsement Irregular

• Deposit in transit

• Insufficient Balance

• Stop payment

• Cheque post/out dated …..Limit\

NEGOTIABLE INSTRUMENTS
Stop Payment

• It is a request made by drawer /legal organ to a bank in

written to stop check payment that has not been
processed yet.
• Stop payment request can be blank cheque or bear an
amount
• If customer request stop payment of cheque that bear
an amount of money on the check the stop-payment
order will be accepted if there is sufficient balance
• If the check is blank no need to require account balance
NEGOTIABLE INSTRUMENTS
Stop Payment
• Stop payment request present either on
originating branch or through call center

• The placement of stop payment order shall be

cancelled by
 Upon the expiry date of the check
 By the court order
 By customer request
 Failed to submit police evidence with 15 days in
case of lost/stolen cheque.
NEGOTIABLE INSTRUMENTS
Insufficient Cheque
• When a drawer issues a cheque with out sufficient fund in
the account.
• The measures to be taken by the bank for dishonored
Checks due to insufficient fund are as follows:
First Instance
Second Instance
Third Instance
NEGOTIABLE INSTRUMENTS
Insufficient Cheque
First Instance
• Record the incident for the first time and issue reminder letter to

the customer.
• Restricted all debit (outgoing) transactions against this account

until the dishonored cheque is fully paid to the payee or

• Block equivalent amount pending for the payment to the payee

.
NEGOTIABLE INSTRUMENTS
Insufficient Cheque
Second Instance
• Record the incident for the second time issue reminder letter
to the customer.

• Restricted all debit (outgoing) transactions against this

account until all the cheques amount fully paid or equivalent
amount is blocked pending the payment to the payee(s)

• levy a fine of 3% face value of cheque but not exceeding Birr

25,000 (twenty five thousand Birr)
NEGOTIABLE INSTRUMENTS
Insufficient Cheque
Third Instance
• Record the incident for the third time issue reminder letter
to the customer.

• Close the account, and report on same date to conventional

payment

• levy a fine of 5% of face value of cheque dishonored for the

third time but not exceeding Birr 50,000 (fifty thousand Birr)
NEGOTIABLE INSTRUMENTS
Release Of Fund or Waive Debit Restriction

• If the drawer presents the dishonored cheques to the

bank or the payee(s) may appear in person to the
bank and confirm in writing that the dishonored
cheques have been fully settled;
• If the payee(s) fails to appear to receive a full
payment after lapse of six months of presenting the
dishonored cheque.
•
NEGOTIABLE INSTRUMENTS
Deletion From The Dishonored Cheque Register
VI. COLLECTION
COLLECTION
Collection through Conventional Channels
• Cash Collection
• Collection of Cheques or Bankers cheque
• Collection through MT 103
• Collection at the premises of the customer

Collection through Alternative /Digital Channels

• Collection through Card on POS and ATM machines
• Collection through online banking channels
• Collection through CBE Birr
COLLECTION
Group Discussion
• Cash Collection for Deposit

• Cash Collection From GERD-Bond Sells

• Cash Collection for Local Money Transfer

• Cash Collection for Local Money Transfer/CPO

• Collection of LCY to Sell FCY

• Cashier Implant & Cash Pick-up

• Cheque clearance system

COLLECTION
Cash Collection for Deposit

BBO
• Receives ,counts and verify collect cash from customers
• Checks the name and account number, the denomination written
on the deposit slip, insert EFIC data (if applicable)
• posts the transaction deliver the original and copy deal slip to
customer
 The cash amount above 5 Bundles are entertained on cash table
COLLECTION
Cash Collection for Deposit

• Forwards to SBBO/MBB/CSM for checking and

authorization
• Surrenders the cash to SBBO assigned at cash beyond the
cash holding limit at any time ;
• Hands over the documents to QMCO for documentation.
COLLECTION
CBE Cheques/Bankers Cheque/CPO

• BBO Collects the cheque/Bankers cheque, checks the

proper presentation, authenticity and completeness and
posts the transaction.
• SBBO Checks, authorizes the transaction.
COLLECTION
Cash Collection for Local Transfer/CPO

The customer fills Local Money Transfer form;

• BBO/JO/BT should collect cash and correctly insert
particulars of the application in the system
• Check the service charge in including / excluding
• SBBO Checks and authorizes the transaction; and Prints the
deal slip/ Deliver the CPO by taking signature at the back of
the application
COLLECTION
Collection of LCY Cash to sell FCY
• BBO Receive travel documents and verifies the signature on the letter of

application from Business manager/Customer service Manager.

• Post the entry and collect the local currency equivalent in cash or debits from

customer’s account.
• Writes permit reference number generated by the system on the application form.

• Hand over the application and tickets to the senior Branch Banking officer for

authorization.
COLLECTION
Cheque Clearing System

• It is the process of moving a cheque from the bank in

which it was deposited to the bank from which it was
drawn

• The movement of the money in the opposite direction

and normally 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.
COLLECTION
There are two common cheque clearing approaches

1. Document based approach

• The presenting bank collect the cheque and send the physical
cheque to drawee to through the clearing bank/ institution
Paper to follow
More advanced type document based approach
Sending the image of the cheque and data through electronic
media in addition to exchange the physical cheques.
( Current approach applied by Ethiopian Banks)
COLLECTION
2. Cheque Truncation

• It is a settlement of clearing transactions on the basis

of images and electronic data without the physical
movement of the instruments.

• It is also the process of stopping the physical

movement of cheques from the presenting bank to the
issuing bank;
COLLECTION
Cheque Truncation

• CTS allows Banks to truncate cheques at the “point of capture”

by providing the capabilities of presenting cheques to the
“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 for
the period specified by law for future reference.
COLLECTION
Cheque Truncation

• The issuing banks have the right to request the

presenting bank and access the physical cheque

retained at the presenting bank

• It is to be implemented in Ethiopia Banking

Environment in near future
CHEQUE TRUNCATION SYSTEM PROCESS FLOW
COLLECTION
Other Banks’ Cheques / Banker’s Cheque
Normal Cheque clearance
• Other bank cheques or bankers’ cheques can be
accepted for deposit on collection basis in any
online CBE branches where NBE clearance
system is implemented.
• BBO/JO/BT Collects the cheque/Bankers cheque,
checks the proper presentation, authenticity and
completeness; and accepted for deposit
COLLECTION

• Dispatches the cheque to conventional payment through

interface system and/or physical cheque, CPO
• OM/CSM Checks the instrument is scanned and the data
entered is correct,; and exports the image from scanner interface
to core banking system and authorizes.
• BBO/JO/BT Keeps the deposit slip and the list of submitted
cheques to conventional payment until credited to customer
account or returned cheques are received
COLLECTION
Collection of Other Bank cheque/Bankers cheque
Special Clearance
• BBO/JO/BT Back- Collects the cheque/Bankers cheque, checks the
proper presentation, authenticity and completeness, and Collects
service charge.
• Prepares MT 103 attachment designed for special clearance, and
sends directly for clearance to the representative bank branch;
• SBBO-Business Co-signs and authorizes the incoming MT-103
message on the system.
COLLECTION
Outward Bills Purchased (OBP)
• Directly credit to customer account

• Accepted base on trustworthiness of the customer

Outward Bills For Collection (OBC)

• Credit to customer account after cheque cleared through

correspondents accounts
COLLECTION
OBP/OBC
• BBO/JO/BT-Back Receives the acceptable Foreign cheque and

forward to SBBO for checking and determination of OBP/OBC

• Checks any stop payment order was made or not and retain

undertaking from the customer in case of OBP

• Credits the money to account/Pays cash and forward to SBBO

• Forwards to International Banking back office Management and

Follows-up on the settlement of the OBP/OBC

COLLECTION
Collection through MT103 from Other Bank
• BM/OM/CSM/SBBO Checks the agreement of the

customer name and account number on MT103

message with the date in our system/core banking
system in case of inactive account.
• Accepts the transaction if the discrepancy is minor.

• Prints MT103 message to be used as a source document

and forwards to SQMCO/QMCO for checking and

documentation.
COLLECTION
Collection Through Digital Channels
 Card Banking - using ATM and POS (FCY and LCY)

• JOO - Check the foreign currency transactions made by FCY

POS terminals and transfers to retention accounts A and B as
per NBE directive ;
 Online Banking - Mobile Banking and Internet Banking

 Agent Banking (CBE Birr) customers deposit either through

Agent, Merchant and Branches

VII. PAYMENT
PAYMENT
Major discussion points
Payment through Conventional Channels
• Cash Payment from accounts
• Local and Foreign money Transfer
• Payment through Fund Transfer/account transfer
• Payment of Negotiable Instruments
Payment through Alternative / Digital Channels
• Payment through Cards and Online Banking
• Payment through CBE Birr
Payment
Group Discussion
• Payments from saving account
• In case of Blind / Illiterate customer
• From Cash Indemnity Account
• From Inactive Accounts
• From Unauthenticated New Accounts
• Payment of GERD-Bond
• From Birr/FCY Current Account
• From Foreign Remittance
PAYMENT
Cash Payment from Saving Account

• Under normal condition withdrawal from saving account

demanded passbook and physically present
• In case of withdrawal request without pass book
payment must approved by SBBO
• SBBO-Business should say “Ok for payment with out
pass book” on the face of the voucher and put his/her
signature
Payment

• Customers present their request by writing the word “I

have withdrawn without pass book” at the back of the
withdrawal voucher and conform by their signature.
• Customer presents ID card

o Properly Identifies the customer

o Posts the transaction, Insert EFIC data as per limit

o Payment should be done without amount limit

PAYMENT
In case of Blind

• The transaction execute in the presence of two witnesses,

one from the bank and the other from customer side
and retain copy of ID card for substantial amounts.
• If the customer is unable to present a witness from her/his
side the (BBO/JO/BT)-Front/SBBO–Business, other than the
transaction processing officer, will become a witness for
the customer side.
PAYMENT

• Exceptionally for those customers who are unable to

come to the branch counter due to any justifiable
reason request to present Witnesses’ by customer
side and QMC-Manager and BBO/JO/BT from bank side
to sign on the voucher in front of him but performer
must ensure customer consciousness.
PAYMENT
Cash Payment from Cash Indemnity Account
• This account debited either to recover cash shortage, or
one year after the staff is transferred into another post or
leave the bank.
• All staffs involved in cash transaction process must opened
C.I.A with proper product category
• Withdrawal process same like any in saving account
expect
 All withdrawal from this account approved by MBB
 The request should be present by application letter.
PAYMENT
Cash Payment from Birr/FCY Current Account

• BBO/JO/BT checks the genuineness and the

completeness of the cheque

• In case of Blind customer present cheque for withdrawal

follow same procedure stated in saving withdrawal

• Identifies the payee, inserts correct data as per the AML

requirement in the system and posts the transaction

using “ appropriate -cheque” menu

PAYMENT

• BM/BM/OM/CSM/SBBO-Business approve any amount of

cheque payments by writing the word “Ok for Payment” and
sign on face of the cheque and forward to (Branch Banking
officer/Junior Officer/Bank Trainee)- Front for payment.
• Confirms from the owner or signatories who sign on the cheque
that is presented for payment greater than birr 100,000;
PAYMENT

Cash Payment from Inactive Accounts

 Payment from such accounts should be effected at

any online branch as per the limit.

• BBO/JO/BT-Front Checks the accounts are inactive or

not , and refer the transaction for prior approval
regardless of the amount
PAYMENT
Cash Payment from Inactive Accounts
• Requests customer to present a renewed ID, retain the
photo copy and identifies the customer at the back of
the withdrawal voucher/cheque.

• Checks the payment is pre checked by SQMCO/QMCO per

transaction checking limit;
PAYMENT
Cash Payment from Inactive Accounts
• BM/BM/OM/SBBO-Business interviews the customer
and approves the payment by stating the word “Ok for
being inactive” and “Ok for payment”

• For saving account payment should be made with out

amount limit at any online Branch

• For current account payment - other than originated

branch should be limited up to Birr 30,000.- only
PAYMENT
Cash Payment From Unauthenticated New Accounts

• Payment request on unauthenticated saving account

up to Birr 10,000.00 joint authorization of BBO/JO/BT
with SBBO-Business other than base branch.
• Payment request on unauthenticated saving account
with out limit joint authorization of BBO/JO/BT with
SBBO-Business base branch.
• Any payment request on unauthenticated current
accounts shall be entertained only in the base branch
PAYMENT
Cash Payment From Unauthenticated New Accounts
• Examines the previous credited transactions trends
especially for fund/account to account transfer
 If he/she believes the transaction behavior is suspicious
BRM/BM/OM/CSM/SBBO approve the withdrawal by writing the
word ‘ok for being pending for document authentication
account’ on the face of the withdrawal voucher/ payment
request letter Per their approval limit.
PAYMENT
Payment for Local Money Transfer
• LMTS payment originated at any branch or through digital
channels shall be paid to the beneficiary at any
branch including for branches located in the same city
• BBO/JO/BT-Front Receives LMTS payment form along with
the security number, Beneficiary’s ID , checks the
genuineity and completeness , and creates awareness
about the bank’s products and services and cross sell.
PAYMENT
Payment For Cancellation of LMTS
• The remitter (sender) may ask cancellation or payment of LMTS
with any online branch by presenting the original customer
advice (deal slip)
• BBO/JO/BT-Front Receives original customer advice (deal slip)
collects the refunding service charge and Writes “service
charge collected” on the face of the customer application form
and signs on it.
• Effects payment in cash or credit to customer account.
PAYMENT
Payment of LMTS for Lost Security Number
• When the remitter lost the LMTS Security number,
she/he should report to the originating branch to
reissue security numbers
• BBO/JO/BT-Front Receives the customer’s form and
collects the service charge as per the terms and tariffs
• BR.MGR Delivers the security number to the customer
against the customer signature on the application form
PAYMENT
PAYMENT
Payment through Fund Transfer
Payment Using the Format for Account to Account

I. Transfer to Accounts Maintained In CBE

• BBO/JO/BT-Front
 Delivers to fill the account to account format and
checks that the request is made by individual
account holder customers or his/her legal agent
 Posts the transaction and deliver advice to customer
PAYMENT
II. Transfer To Accounts Maintained In Other Banks
BBO/JO/BT-Back
• Receives the letter of instruction from BM/OM/CSM/SBBO–
Business;
• Inserts the particulars on the mandatory fields ‘Input MT103
Outward Remittance’ menu
• Writes ‘posted’ on the instruction letter and sign on it
• SBBO Checks all the particulars on the transaction are inserted
correctly on MT-103 and authorizes the transaction.
PAYMENT
Payment Through Cheque
Account holders’ can effect payment by using cheque without
the payee’s endorsement to their customers’ account with
the following condition:
• Writes account number and the payee’s name. Crossed
by transverse line across the face of the cheque and
written by the word “Payable in account” on the face of
the cheque;
• Affixes the stamp of drawer/account holder at the back of
the cheque in case of corporate customer
PAYMENT
Payment Using Letter of Instruction
 The transfer initiated through letter of payment instructions
from corporate customers should only be to the following
purposes:
 To any government/Public enterprise accounts
 To their own subsidiary/branch or company
accounts
 To employee salary accounts
 To place standing instruction
 Other than above stated requests may entertain by the
approval of the MBB based on KYC strength of customer
in particular to corporate customer
PAYMENT
Accepting Letter of Delegation
• CSM receives the letter of delegation, and requests conformation
from account holders/signatories of the corporate entities
• Receive delegated person signature specimen and photo
Letter Of Payment Instruction
• BBO/JO/BT-Back Receives the payment instructions from
OM/BN/CSM and checks the particulars therein including the
stamp for corporate customers;
• Checks the completeness, verify delegated persons signature
signed at back of the letter and posts
PAYMENT
Payment of Foreign Remittance
• BBO/JO/BT-Front
 Receives the application form and the ID from the customer;
 checks that the beneficiaries’ name, Remitter name amount test
question if any on system
 Generates the ticket and makes the customer signs on it
 Explains the beneficiary about all saving products to open an account if
the customer has no account before effect payment
• SBBO Collects the customer application form from customer and
communicates IBSO (International Banking Service Operation) for MTO not
directly accessed by the branch.
PAYMENT
Payment Through Negotiable Instruments
A. Payment of Bankers’ Cheque /CPO (Expire)
BBO/JO/BT-Front
 Receives the Bankers’ cheque and ID from the presenter
(Presenter is either the purchaser or the beneficiary)
 Checks the genuineness and the completeness of the bankers
cheque, endorsement and posts the transaction
 Effects the payment within her/his payment limit
 Request the presenter to write additional letter stating reason
for the delay/expiry, if expired CPO is presented for payment;
PAYMENT
B. Payment of Bankers’ Cheque /CPO ( lost)

BBO
 Receives the application and the request is entertained only in the
branch where the banker’s cheque issued;
 Receives explicit consent from the purchaser and undertaking
from the payee
 Collects service charge and Pays the customer in cash or credit to
his/her account.
 In case of corporate customer, the proceeds of the CPO shall only
be credited to the account.
PAYMENT
CPO'sand Certified cheque issuance:
Commission:
From Account Birr 50.00
With Cash:
For Amount less than 100,000 Birr 100.00
For Amount from 100,000 up to 1,000,000 Birr 250.00
For Amount above 1 million Birr 500.00
Cancellation/Amendment of CPO
For account holders Birr 50.00
For non-account holders Birr 100.00
Loss and Refunding
For account holders Birr 100.00
For non-account holders Birr 200.00
Loss and Replacement
For account holders Birr 150.00
For non-account holders Birr 200.00
PAYMENT
Payment through standing instruction

Customer Service Manager (CSM)

• Receives the signed letter of standing instruction or

Form from the account holder and reviews its proper

presentation
• checks the relevant information in the standing order

form is properly incorporate in to the system.

• Authorizes the standing instruction order..
PAYMENT
Payment through standing instruction

BBO/JO/BT-Back
• Insert all the relevant information into the system
PAYMENT
Payment of CBE Cheque /Bankers’ cheque Collected
by Other Banks (through EATS value <200,000)
• Back officer Receives the cheques/CPO dispatched
from EATS team and

• Check against the summary report for acceptance or

rejection on the system and return cheque on next day
before 10:00AM noon if any

• SBBO-Business Signs on the cheque returned slip,

specify the valid reason, and returns the physical cheque
to EATS before elapses the standard time
PAYMENT
Payment of CBE Cheque/Banker’s Cheque by
Special Clearance(value >200,000 Birr)
•BBO/JO/BT-Back
 Receives the CBE cheque/banker’s cheque with MT-103
attachment designed for Special cheque clearance;
 Checks the genuineness and the completeness of the
cheque;
 Posts the cheque in “Input MT103 Outward
Remittances - Cheques “menu & dispatch with in 6 hrs
PAYMENT
Payment of CBE Cheque/Banker’s Cheque by
Special Clearance(value >200,000 Birr)
• SBBO-Business Checks that all the particulars are
inserted correctly

• Authorizes the transaction on the EATS Menu and Signs

on the attachment.

Bank to Bank Transfer (MT103-ATS)

Incomina Cheque Free
Outgoing Cheque Birr 20 Per cheque
PAYMENT
GERD Bond Payment Up on maturity date
BBO-Back
• Receives the bond coupons and sales receipt from the
customer and checks the maturity date;
• Updates the interest to be paid on the system or Manually.
• Makes the customer to sign on at the back of the bond;
• Pays the total amount after properly identifying the
customer or credit to the customer account up his/her
request as per the limit;
PAYMENT
GERD Bond Payment Up on maturity date
• Puts cross line on the paid bond and forward to SBOO.
 If the payment is out of the issuing branch:
 The paying Branch (selling unit) should
communicate about the payment with the
originating Branch using letter before processing
the transaction.
 The issuing branch must sent payment
conformation letter for payment.
PAYMENT
GERD Bond Payment before maturity date

• For Bonds maturing in 1-5 years the Bond buyer can

redeem Bond value at least after one year from the
issuance date.
• For the Grand Ethiopian Renaissance Dam Bonds
maturing above 5 years, the Bond buyer can redeem
Bond value at least after three years from the
issuance date.
PAYMENT
GERD Bond Payment before maturity date
• Bonds which are redeemed after one and/or three years
but before maturity date are subject to penalty charge
on the accrued interest.
• Note - any payment request regarding to immature
GERD Bond should be present and processed at
Development bank of Ethiopia (DBE).
PAYMENT
Cash withdrawal limit NBE directive

• Ethiopian Birr 50,000.- per day and Ethiopian Birr 1,000,000.-

per month for natural person.

• Ethiopian Birr 75,000.- per day and Ethiopian Birr 2,500,000.-

per month for juridical person.

• The decision for approving cash withdrawal in excess of the

limit shall be made by the CEO of the bank.

• Penalty: 25% of the cash withdrawal value exceeding the limit.
PAYMENT
Payments Only on The Base Branch

All transaction can be entertained in any branch but the

following request handle only on the base branch:

 Withdrawal /transfer through standing instruction
 Court order either payment or blocking instruction
 Fund transfer/LMTS via letter of instruction for corporate

entities
 Withdrawal from Unauthenticated current account
PAYMENT
Payment Through Digital Channels
A. Payment Cash Advance On POS

BBO/JO/BT-Front
 Receives the card and the ID card to ensure the presenter is proper card

holder;
 Identifies the customer by verifying the signature of customer’s account on

the system
 Attaches the copy of cardholders’ passport/ID for all international cards;
 Back officer Prints the daily summaries and the detail reports (for

international transactions) using POS Terminals;

PAYMENT
B. Payment Through CBE Birr
• CBE birr customers, Agent/Merchant and Top agent can withdraw cash

from its account found in CBE birr system in any nearby Branches.

I. Payment to Registered Customers

• BBO Forwards the Till/Short code to the customer in order to process the

cash out;
• BBO Checks the SMS notification, the branch short code and amount are

correctly inserted, to initiate cash out transaction by using customer

mobile handset
PAYMENT
• BBO Checks the transaction amount is credited to branch float virtual account
in CBE Birr System;
• BBO Pays the cash to the customer equivalent amount against signed
transaction receipt;

II. Payment for Unregistered Customer

BBO
 Requests the customer to fill the voucher number on cash withdrawal form
 Initiates the cash withdrawal and verifies the voucher code number & the
amount using CBE Birr System
 Checks the SMS notification for unregistered customer cash out service
 Pays the cash to the beneficiary.
 VIII. Cash Management Overview

08/05/2025
 Cash Management Overview
Peculiar Nature of cash
 Cash is a liquid, portable, and desirable asset
 it can easily be used to acquire other assets, buy services, or
satisfy obligations
 Highly sought after and tempting to individuals,
 very sensitive and source of potential insecurity and easily
misused, wasted or stolen,
 Banks are typically a primary financial service provider for the
custody of cash assets.
Therefore, Banks must have adequate cash management to
prevent theft or other misuses of cash
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Cash Management Overview
Group Discussion

 Why management of cash is so

important?
 Identify and discuss components of
cash management
 Cash Management Overview
Cash Management
 The process of optimum utilization of cash for ensuring
liquidity and profitability and
 It includes proper collection, investment, and
disbursement of cash.

Objective/goal of cash management

• Trade off between liquidity and profitability in order to

maximize long term profit.
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 Cash Management Overview
 To achieve goal of management organizations
should:-
• Forecast and Regulate cash inflows and out flows
• Plan cash requirement
• Determine and monitor safety level of cash/internal
control
• Locate the needed fund
• Determine criteria for investment of excess cash
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 Cash Management Overview
Major components of Cash Management
Forecasting Internal Control
 Proper planning of future  Methods and procedures set up by
operation to determine management to safe guard assets
optimal cash balance and to ensure that accounting
 Enables to minimize liquidity records are accurate and reliable.
risk.  Administrative control or
 Ensures the ability to operate
accounting control
short term and long term cash
flow

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 Cash Management Overview
Administrative Control-Cash Management
 Administrative control handles and reports internal factors and figures
that influence decision making, operational control and managerial
planning.
 It includes:-
 Establishment of responsibility and segregation of duties
 Accountability, Authorization and approval
 Security of assets
 Branch Cash limits
 Standardize documentation
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 Cash Management Overview
Accounting Control-Cash Management
 Assuring reliability of financial records.

 It is the trial balance or general ledger control.

 It incorporates:-

• Standardize record and documentation

• Periodic reconciliation
• Independent checks on performance

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Branch Cash Management
Group Discussion

 Why we need to plan the amount of cash

withdrawn from Vault before start of daily
operation?

 Why we need to plan the maximum

amount shall be held by each maker
during operation hours?
 Branch Cash Management
Group Discussion

 Why we need to plan the amount of cash withdrawn

from Vault before start of daily operation?

 Why we need to plan the maximum amount shall

be held by each maker during operation hours?
o Discuss Branch Cash Operation During
 Day start

 Half day and end of day balancing and

closing
 Cash Collection/Supply Request -Issue
 Branch Cash Management
Branch Cash Planning
 BBM /CSMs and BOM/SCSO-Cash forecast :-
o The amount of cash withdrawn from vault to start the
daily operation.
o The amount given to each maker at start of day.

o The maximum amount shall be held by each maker

during operation hours.

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 Branch Cash Management
Branch Cash Planning

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 Branch Cash Management
Branch cash operation Process
 During Day Start

• Open branch vault by, OM/SBBO (cash) with

BM/CSM, and withdraws there from the cash that
will be needed for the day’s operations;
• OM/CSM Writes down the amount of the cash
withdrawn from the vault in her/his dispatch book,
and the SBBO(cash )sign on his dispatch.
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 Branch Cash Management
Branch cash operation Process
 During Day Start

• OM/CSM transfer the amount of cash withdrawn from

vault against the denomination through ‘Vault to till’
transfer using the system.
• OM/SBBO Hand over the cash box that was locked
and kept in the vault to each BBO
• SBBO transfer amount of cash using system Till-to-Till
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 During the day operations
Transfer cash when cash at hand >limit and request cash
when cash < minimum limit

BBO- at the counter

Senior BBO /cash /
-Should always keep the cash
notes in organized manner -should always maintain
/for ease of sorting / sufficient cash
-Should continuously -Should continuously
monitor till balance monitor till balance
customer service officers

Supply cash when requested

Check & receive cash BBO retain above
limit

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 Branch Cash Management
Branch cash operation Process
 Half day balancing and closing SBBO:-

• Collect all FCY LCY cash amount in excess of Birr 50,000.-

• Ascertain the correctness of total denomination and
acknowledge the receipt cash by authorizing till transfer
using the system and take over cash box.
• Lodge all physical cash, except loose, to the Operation
Manager/Customer Service manager and make till to
vault transfer for equivalent amount of cash surrendered.
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 Branch Cash Management
Branch cash operation Process
 End of day balancing and closing SBBO:-
• Receives the total amount of cash from the performer
and Checks that the bricks contain 10 bundles, 100
and 50 Birr notes have initials of the counter and
verifier,
• Ascertain the correctness of total domination and
acknowledge the receipt cash by authorizing till
transfer using the system
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 Branch Cash Management
Branch cash operation Process

End of day balancing and closing SBBO:-
• Balances the cash books of local and FCY against the Vault
account balance and signs on the space provided for that
purpose;
• Checks the cash book balance against the general ledger balance
of system on a daily basis.
• Transfers the cash lodgment to vault by writing the amount and
denomination on the bound book, together with petty-cash box
jointly, with Customer Service Manager; or OM and BM in case of
Grade-3 and above.
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 Branch Cash Management
Branch cash operation Process
 End of day balancing and closing BM/OM/CSM:-

• Ensures that each brick contains 10 bundles and

counts all the loose Birr notes and count each FCY
notes;
• Authorize the ‘Till to Vault transfer’ made by the
Senior Branch Banking Officer –cash;

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 Branch Cash Management
Branch cash operation Process
 End of day balancing and closing:- BM/OM/CSM:-

• Complete the daily cash balance after the SQMCO/

QMCO confirms by his signature that the total
debit and credit transactions are correct and
checks the cash book balance against the general
ledger balance of system on a daily basis.

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 Branch Cash Management
Cash Collection/Supply Request
 Cash collection request:-

• OM/CSM requests Branch and Digital Banking and operational

support at District office for the collection of excess cash through
letter.
• Check and authorize the transaction
• SBBO:-Requests for the ID card of the Officer of unit and
ascertain it.
• Retained Copy of the letter and assure the identified officer sign
on the letter to acknowledge receipt of the cash.
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 Branch Cash Management
Cash Collection/Supply Request
 Cash Supply request:-

• OM/CSM requests Branch and Digital Banking and

operational support at District office cash supply through
letter.
• SBBO:-Count the cash collected from cash supply
branch/cash issue center.

• OM/CSM confirms receipts of cash by checking accuracy and

lodges the money to vault jointly with SBBO

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 Branch Cash Management
Group Discussion

 Discuss the various issues that should be fulfilled

to refund cash excess.

 Identify the responsible parties for refund of cash

excess and discuss their duties and responsibility

 Discuss deteriorated notes and counterfeit notes

handling process

 Discuss Keys and combination code management

 Branch Cash Management
Refund of Excess Cash
OM/CSM BM/CSM
 Receives the application letter from claimant  Receives and reviews the proposed cash
customer; and Ascertains the cash excess has excess refund
been registered by the branch.  Approves jointly with OM/SBBO – cash and
 Proposes and forwards cash excess refund QMCM/ SQMCO up to Birr 50,000;
proposal to BM/ CSM or QMCM/SQMACO and  Proposes cash excess for joint approval of
Branch Manager joint approval. QMCM/SQMACO and Branch Manager for birr
50,000 and above
 Reports monthly excess cash refunded to
District Director and District quality
management and control Regardless of the
amount of money involved.

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 Branch Cash Management
Deteriorated Notes and Mutilated Coin Handling
 Front Performer
• Identifies deteriorated notes and
depilated coin which is collected from
the customer as per the NBE
guideline;
• Forwards mutilated or damaged notes
and coins to Senior Branch Banking
Officer –cash at any time of a week.
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 Branch Cash Management
Deteriorated Notes and Mutilated Coin Handling
 SBBO-Cash
• Receives and checks the mutilated or damaged
notes and coins from performers
• Keeps the mutilated or damaged notes and coins until
attain full bricks or full bag coins and affixed rubber
stamp marked “DETERIORATED”
• Forwards full bricks notes or bag coins to issue centre
during cash consignment.
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 Branch Cash Management
Counterfeit (Forged) Notes
 Performers
• Identifies counterfeit notes from
genuine notes at a time of
collecting cash from customer; and
• Makes Mark as “COUNTERFIET” in
front of the presenter and report to
Operation Manager.
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 Branch Cash Management
Counterfeit (Forged) Notes
 OM/CSM
• Receives the counterfeit notes,
interview the customer and retain
address of customer; and
• Reports to the nearest police
station immediately by copy to
Cash Management at Head Office.
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 Branch Cash Management
Keys and combination code management
Strong Room Doors, Grills and Vault keys
 Branch Manager:- Hands over the strong room
doors, grills and vaults duplicate keys to
Branch &Digital Banking and operation support
–District using handing taking format.
 Hands over the keys to the responsible
performer after retaining their signature on the
register book;

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 Branch Cash Management
Keys and combination code management
Vault Room Combination Code
 BM/CSM:- Writes the combination code, the
vault type and the combination code on
reporting format and sealed in white envelope
and sign on the sealed part;
 Inserts the envelope in another envelope,
sealed the envelope, stamp on the sealed part
and write ‘Private and confidential’ and
send/deliver to the respective District-Director;
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 Branch Cash Management
Keys and combination code management
Cash Box Keys and Combination code
 OM/SBBO-Request/maintain the cash box from
Banking & Digital Banking and operation Support;
 Register on the cash box register and hands over to
the respective performer;
 Hands over the duplicate keys to the Branch
Manager with a sealed envelope for each box that
bears the name of the officer and signature.

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OTHER RELATED ISSUE
Cash Box Handling
• The duplicate Cash Box key and combination code kept
under custody of the branch manager.

• Delivery of cash Box to the staff should be against

her/his signature;

• Designated staffs must handle the cash box properly

and used for the intended purpose only.
OTHER RELATED ISSUE
Replacement of Lost Keys
• The individual key holders should immediately report the loss of
keys in writing to their immediate supervisors;

• Those in custody of duplicate keys upon receipt of loss reports-

must immediately supply the duplicates to the concerned Branch
/individual

• Lost strong room door/ safe key must be replaced, all costs and
expenses that are incurred as a result of a key loss replacement
covered by the staff who lost key
IX. PROFILE MANAGEMENT
AND OTHER RELATED ISSUE
PROFILE MANAGEMENT
Change of Signature
An account holder may request for changing of signature for
either of the following two reason:
 Based on the customer request
 When an illiterate account holder becomes literate.

• Frequent change of signature shall be discouraged;

• Change of signature is subjected to Service charge as per

terms and tariffs;
PROFILE MANAGEMENT
Change of Signature

Signature change Birr 10

PROFILE MANAGEMENT
Name Change Request
• Customer’s name is not properly recorded on the system

• Customer’s Name Changes Request by Court Order

Customer’s Account Status from Inactive to Active

Account
• Fix the system to change account status from inactive to active while the

number of transaction executed on an account based on the deposit balance.

• Br.M/BM/CSM change the status based on the number of transaction/KYC

confidence level established when the customer request.

PROFILE MANAGEMENT
Handling Power of Attorney

BM/CSM - Receives the original power of attorney and

checks the statement that gives the power to act on

behalf of the principal.

• However, if it contradicts, advice the customer to

adjust her/his power of attorney or forwards the case to

legal service for further advice

PROFILE MANAGEMENT
Handling Power of Attorney

• Returns the original to the customer and sends the copy

document to the issuing organ by putting the branch

stamp along with the cover letter for authentication

before any transaction

PROFILE MANAGEMENT
Digital channels Profile Management

CBE Birr/Agent Banking

 CBE Birr Customer Level Update / Upgrade
 The self-registered customer can be upgraded to the
next level to access all CBE Birr services up on
presenting documents .
 Updating the CBE Birr Agent’s /Merchant’s Profile
PROFILE MANAGEMENT
Card Banking and online banking Profile
 Additional/Secondary Card Request
 Additional Account Association to Debit Card
 PIN Change Request on Cards
 Card Replacement Request
 Change/Additional Account Association for Mobile
Banking and Internet banking Service
 Additional POS Terminal Request
 X. PRODUCT AND
SERVICE TERMINATION
PRODUCT AND SERVICE TERMINATION
Group Discussion

Discus:
• Reason for close an account ?
• Focus points during contract
termination?
PRODUCT AND SERVICE TERMINATION
Reasons for Contract Termination

• Requested by the customer;

• Instructed by court;
• Service charge (in case of inactive demand
deposit account)
• Mal operation list; and
PRODUCT AND SERVICE TERMINATION
Reasons for Contract Termination

• Not deposited a minimum amount in saving account.

• When the merchant changes the business and returns the
trade license.
• When the merchant license is cancelled .
PRODUCT AND SERVICE TERMINATION
Focus Point during contract Termination

• Card banking
• Internet Banking
• Mobile banking
• POS
❖Interviews the customer before closing an account by
CSM/MBB
PRODUCT AND SERVICE TERMINATION
Focus Point during contract Termination

 Ensure all settlements are done on the Agent CBE Birr

accounts and conventional accounts;
❖ Collects all the bank’s assets from the agent’s location
❖ Deactivate the merchant’s POS Terminal at T-24 ,
Internet and mobile Banking
❖ In case of EDRMS, relevant documents crossed with
canceled stamp, scanned & captured in the system