HDFC Remedial Sessions Reading Material (1) PDF

Contents 1. Audit and Compliance................................................................................... 2 2. Deliverables Management............................................................................. 5 3. Digital Banking...........................................

Contents 1. Audit and Compliance................................................................................... 2 2. Deliverables Management............................................................................. 5 3. Digital Banking............................................................................................... 7 4. Insurance...................................................................................................... 9 5. Investments................................................................................................. 10 6. Know Your Customer (KYC).......................................................................... 14 7. Loans........................................................................................................... 17 8. Lobby Management..................................................................................... 19 9. Selling Skills................................................................................................ 20 10. UPI Transactions in Branch Banking.......................................................... 22 11. Understanding Cheques and Material Alterations in Cheques.................. 24 12. Vault Operations...................................................................................... 26 13. WOW Journey........................................................................................... 32  1. Audit and Compliance Customer Care Executive (CCE) Score Card Service Quality Index Net Promotor Score (NPS) Net Promoter Score (NPS) is a metric used to assess the bank's customer experience – loyalty, satisfaction, and enthusiasm. It is calculated by asking customers one question: "On a scale of 0 to 10, how likely are you to recommend this product/company to a friend or colleague?" Aggregate NPS scores assist businesses in improving service, customer support, delivery, and so on to increase customer loyalty.  2. Deliverables Management Returned Welcome Kit Date of deliverable retention is calculated from the “Last acknowledgement date” in DMS. On due date the deliverables are destroyed in the presence of 2 bank sta. 3. Digital Banking HDFC Bank Smartbuy Platform HDFC Bank SmartBuy is an online portal for only displaying o ers extended by Merchants to HDFC Bank’s Customers. HDFC Bank is not responsible for Selling/Rendering any of these listed Products/Services. HDFC Bank™ does not act as an express or implied agent for the Products/Services o ered by Merchants/Owners to Customers. HDFC Bank is merely facilitating payment to its customers by providing the Payment Gateway Services. HDFC Bank™ is neither guaranteeing nor making any representation regarding the o ers made by the Merchant. HDFC Bank is not responsible for Sale/Quality/Features of the Products/Services provided in the o ers listed by the Merchant/Owner. SmartBuy o er benefits cannot be availed with the use of another Debit/Card. Any purchase of Product/Service will only be through HDFC Bank's Debit/Credit cards. The Customer’s discretion is advised in this regard. Electronic Funds Transfer HDFC Bank Net Banking Net Banking (Internet Banking) refers to the digital platform provided by banks that allows customers to access and manage their accounts and financial transactions online through a secure website or mobile application. It eliminates the need for physical visits to the bank for routine banking services. Benefits of Net Banking 1. Convenience o Access your bank account 24/7 from anywhere with an internet connection. o Avoid long queues and save time. 2. Ease of Transactions o Transfer funds instantly via NEFT, RTGS, IMPS, or UPI. o Pay bills (electricity, water, phone, etc.) quickly and schedule future payments. 3. Account Management o Check account balances and transaction history in real time. o Download account statements for personal or o icial use. 4. Loan and Credit Services o Apply for loans, credit cards, or other financial services online. o Track the status of ongoing loan applications. 5. Investment Opportunities o Manage fixed deposits, recurring deposits, or mutual funds. o Buy/sell shares and bonds through integrated trading services. 6. Safety and Security o Transactions are secured with advanced encryption, two-factor authentication, and OTP verification. 7. Cost E iciency o Reduces operational costs for banks, leading to fewer or no charges on online services. o No travel expenses to visit bank branches. 8. Environmental Impact o Reduces paper usage through electronic statements and online applications. 4. Insurance  What is Insurance? o Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. o As such Insurance is a means of protection from financial loss o An entity which provides insurance is known as an insurer or insurance company. o The person or entity who buys insurance is known as an insured or policyholder. o Contract of Insurance is called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.  The insurer o ers protection by grouping together lots of people exposed to the same risk. They collect money (a premium) from each one to create a fund (a pool) to pay the few who do su er losses.  Types of Insurance Cover:  o Life Insurance – A contract providing for payment of a sum of money to the person assured or, beneficiary in case of his death. It is a good method to protect insured’s family financially, in case of death, by providing funds for the loss of income.  Plan Types: Term Plan, Whole Life Plan, Endowment Plan, Moneyback Plan, Unit Linked Income Plan (ULIP). o General Insurance – A contract to make good the loss caused to general items like property, vehicles, factories etc. due to events covered in the contract.  Types: Vehicle Insurance, Home Insurance, Marine Insurance, Travel Insurance, Rural Insurance, Commercial Insurance. o Re-insurance – Reinsurance is insurance purchased by an insurance company from one or more insurance companies (the "reinsurer”) as a means of risk management. o Health Insurance – A contract to cover losses due to health issues caused by events like accidents, hospitalization, surgery etc. as covered under the policy.  Hospitalization Plan, Daily Cash Benefit Plan, Critical Illness Plan,  Insurance Regulatory Development Authority of India (IRDAI) is the regulator of insurance business in India.  It is important and compulsory to nominate a person for life insurance so that the nominee can receive policy benefits in the event of death of the policy holder.  HDFC Bank has tie-up with Aditya Birla Sun Life, HDFC Life, and TATA AIA Life Insurance for Life Insurance and HDFC Ergo General Insurance for Non-life insurance.  Life insurance premium payments are eligible for tax benefits under Section 80C of the Income Tax Act, 1961 up to a limit of Rs. 1.5 lakhs annually. 5. Investments Investments can be broadly classified into the following categories: 1. Financial Investments  Stocks: Shares of ownership in a company, o ering potential capital appreciation and dividends.  Bonds: Fixed-income securities issued by governments or corporations to raise funds.  Mutual Funds: Pooled investments managed by professionals that invest in stocks, bonds, or other securities.  Exchange-Traded Funds (ETFs): Similar to mutual funds but traded on stock exchanges like individual stocks.  Fixed Deposits (FDs): Safe and fixed-return investment o ered by banks and NBFCs.   Recurring Deposits (RDs): Regular, small deposits made for a fixed tenure to earn interest. 2. Real Estate Investments  Purchasing residential, commercial, or industrial properties for rental income or resale. 3. Commodity Investments  Investing in physical commodities like gold, silver, oil, or agricultural products. 4. Alternative Investments  Includes private equity, hedge funds, collectibles (art, wine), and venture capital. 5. Government Schemes  PPF (Public Provident Fund), NSC (National Savings Certificate), Senior Citizens’ Savings Scheme (SCSS), Sukanya Samriddhi Yojana, etc. 6. Cryptocurrencies  Digital currencies like Bitcoin, Ethereum, o ering high-risk, high-return opportunities. PPF (Public Provident Fund) The Public Provident Fund (PPF) is a long-term savings and investment scheme introduced by the Government of India. It is designed to encourage individuals to save regularly and build a retirement corpus while enjoying tax benefits. The scheme o ers a fixed interest rate determined by the government every quarter. Features of PPF 1. Eligibility o Open to all Indian residents. Non-resident Indians (NRIs) and HUFs are not eligible to open new accounts. o A minor’s account can be opened by their guardian. 2. Tenure o The PPF account has a fixed maturity period of 15 years, which can be extended in blocks of 5 years after maturity. 3. Investment Limits o Minimum deposit: ₹500 per year. o Maximum deposit: ₹1.5 lakh per year.  o Deposits can be made in a lump sum or installments (up to 12 times a year). 4. Interest Rate o The interest rate is compounded annually and decided quarterly by the Government of India. o The interest is credited on March 31st every year. 5. Tax Benefits o Contributions, interest earned, and withdrawals are exempt from tax under Section 80C of the Income Tax Act (EEE: Exempt-Exempt-Exempt status). 6. Loan and Withdrawal Facility o Loan: Loans can be availed between the 3rd and 6th financial years. o Partial Withdrawal: Allowed from the 7th financial year onward, subject to conditions. 7. Nomination o Nominees can be assigned at the time of opening the account or later. 8. Premature Closure o Permitted after 5 years for specific reasons, such as higher education or medical emergencies, subject to conditions. 9. Account Transfer o The account can be transferred from one bank or post o ice to another without losing benefits. 10. Risk-Free Investment o Backed by the Government of India, making it a highly secure investment option. Benefits of PPF  Provides long-term financial security.  Encourages disciplined savings.  Risk-free with guaranteed returns.  Ideal for tax-saving and wealth accumulation. Demat Account A Demat Account (short for "Dematerialized Account") is an electronic account used to hold securities such as stocks, bonds, government securities, and mutual fund units in a digital format. It eliminates the need for physical certificates, making it easier to manage and trade securities. Demat accounts are commonly used in stock trading and are essential for investors participating in the stock market. They are regulated by depositories like NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited) in India. Benefits of a Demat Account 1. Elimination of Paperwork o Securities are held digitally, reducing the risk of damage, loss, or forgery of physical certificates. 2. Convenience in Transactions o Enables faster and easier transfer of securities during buying and selling. No physical delivery is needed. 3. Reduced Costs o Avoids stamp duty on transfer of securities, which is mandatory for physical certificates. 4. Consolidation of Holdings o Investors can hold multiple types of securities (stocks, bonds, mutual funds) in one account for easy management. 5. Quick Settlements o Facilitates faster settlement of trades, typically within T+2 days (trade date + 2 days). 6. Nomination Facility o Allows nomination to ensure smooth transfer of securities to the nominee in case of the account holder's demise. 7. Increased Security o Reduces the risks of theft, loss, or damage associated with physical certificates. 8. E icient Portfolio Management o Simplifies tracking and managing investments with real-time access and updates.  9. Accessibility o Online access enables account holders to monitor their investments from anywhere. 10. Support for Corporate Actions o Facilitates seamless handling of corporate actions like dividends, stock splits, and bonus issues directly into the account. Mutual Fund A Mutual Fund is a type of diversified investment vehicle that pools money from multiple investors to create a common fund, which is then invested in a diversified portfolio of securities such as stocks, bonds, money market instruments, and other assets. The fund is managed by professional fund managers who aim to generate returns for investors based on the fund's objectives. Mutual funds are regulated by authorities like SEBI (Securities and Exchange Board of India) in India to ensure transparency and investor protection. Key Features of Mutual Funds 1. Pooling of Resources: Investors pool their money into the fund, enabling access to larger investment opportunities. 2. Professional Management: Managed by expert fund managers with in-depth market knowledge. 3. Diversification: Investments are spread across various assets to reduce risk. 4. Liquidity: Units of mutual funds can be redeemed or sold on demand in most cases. 5. Variety of Options: O ers a range of schemes based on risk tolerance, investment goals, and time horizons. Mutual funds are a convenient way for individuals to invest in financial markets without needing extensive knowledge or large capital. 6. Know Your Customer (KYC) KYC (Know Your Customer) is a regulatory process used by banks and financial institutions to verify the identity of customers before or during transactions. It ensures that the customers are genuine, mitigates risks of financial fraud, and complies with anti-money laundering (AML) and counter-terrorism financing (CTF) laws. KYC involves collecting and verifying information such as:   Identity Proof (e.g., Aadhaar card, Passport, PAN card)  Address Proof (e.g., Voter ID, Utility Bills)  Other personal and financial details. Four Pillars of KYC The four pillars of KYC form the foundation of a strong customer identification and due diligence process: 7. Customer Acceptance Policy (CAP) The Customer Acceptance Policy (CAP) is the foundation of any e ective KYC (Know Your Customer) program. It defines the criteria that an institution uses to decide whether to establish a business relationship with a customer. CAP requires accepting only those clients whose identity is established by conducting appropriate due diligence based on the risk profile of the client. Before opening the account, the branch sta should check the following: o Banned Dedupe o Multilevel Marketing Negative o Unique Customer Identification Code (UCIC) 8. Customer Identification Program (CIP) a. Verifying the identity of the customer using valid documents (e.g., passport, Aadhaar, voter ID, or driving license). b. Ensuring the person opening the account is who they claim to be. c. Key checks include name, photo, date of birth, and address. 9. Risk Management a. Assessing the risk profile of the customer (Low, Medium, or High Risk). b. Understanding the nature of the customer’s business and typical transaction behavior. c. Enhanced due diligence (EDD) is performed for high-risk customers, such as Partnership Firms, private Limited Companies, politically exposed persons (PEPs) or customers from high-risk countries. 10. Transaction Monitoring a. Continuously reviewing customer accounts and transactions to identify suspicious or unusual activity. b. Detecting patterns that deviate from the customer’s usual behavior or established norms, such as high-value transactions or cross-border transfers.  c. Filing suspicious transaction reports (STR) if necessary. d. High-value transaction monitoring refers to the process where banks and financial institutions track and review transactions that exceed a certain monetary threshold. This is done to: i. Detect potential fraud or money laundering activities. ii. Ensure compliance with regulatory requirements, such as Anti-Money Laundering (AML) norms. iii. Flag unusual patterns, such as sudden large transactions inconsistent with a customer's typical behavior. O icially Valid Documents (OVD) 1. Passport 2. Driving license 3. Proof of possession of Aadhaar (as issued by UIDAI) 4. Voter's Identity Card issued by the Election Commission of India 5. Job card issued by NREGA duly signed by an o icer of the State Government 6. Letter issued by the National Population Register containing details of name and address. Note: Proof of possession of Aadhaar includes:  Aadhaar letter issued by UIDAI.  E-Aadhaar only downloaded from UIDAI website,  Aadhaar Secure QR Code, or  Aadhaar Paperless O line e-KYC B. If the OVD does not have updated address, the following Deemed OVD’s can be submitted for the limited purpose of proof of address, which is valid for 3 months. 1. Utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill). 2. Property or Municipal tax receipt. 3. Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings if they contain the address. 4. Letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and license agreements with such employers allotting o icial accommodation. In case Deemed OVD is submitted, Valid OVD with current address to be submitted within a period of three months. Mandatory Checks for Account Opening o PAN Verification o Pre-account opening Dedupe checks. o Negative checks o Original Seen and Verified confirmation. o ‘Signed before me’ confirmation. 7. Loans Home Loan A Home Loan is a type of loan that you can take for purchasing a ready-made property, constructing your own home, or renovating/extending your existing property. You can also do a Balance Transfer of your existing home loan over to a new lender like HDFC Bank for better Home Loan interest rates. Your eligibility for a Home Loan depends on factors such as your income and repayment capacity. Apart from that, other decisive factors include your age, qualification, spousal income, number of dependents, assets and liabilities, savings history, and stability of occupation, among others. Eligibility Criteria Vehicle Loan Vahan Gyan: It is a Sales Enablement Solution for its employees and a iliates who are dealing with Vehicle Loan and Insurance. It is a comprehensive knowledge bank of everything about Cars and Bikes with details like On-Road-Price, EMIs, Pictures, Specifications, O ers, Reviews, Videos, etc. It enables the HDFC employees to digitally submit the loan post disbursement document (hereafter referred to as PDD) and process the Insurance rollover and renewal case. It provides various ways through which the SM and ASM can track the status of the leads at di erent stages and take appropriate actions on them. The field sta works on the PDD leads and Insurance leads and submit documents or get the payments information processed. ZipDrive: It is fast online auto loan o ering. With this state-of-the-art technology enabled solution, auto loans can be availed as fast as within 10 seconds. With ZipDrive o ering, bank customers wishing to avail an auto loan need not visit a branch or any other physical touch points. This solution gives the customer with a pre-approved loan o er the freedom to avail an auto loan from the safe confines of their homes, through Net banking or via assistance by our phone banking team. Loan Assist Application With HDFC Bank Loan Assist App, the customers can get complete loan assistance quickly. The customers can view all HDFC Bank loans, choose the one that suits them, and track finances, or EMI easily. Customers can opt for a new bank loan and get quick approvals (both HDFC Bank and non-HDFC Bank customers) on Personal Loan, Car Loan, Two-Wheeler loans, and Business Loan. Personal Loan Eligibility criteria: The following people are eligible to apply for a Personal Loan:  Employees of private limited companies, employees from public sector undertakings, including central, state, and local bodies  Individuals between 21 and 60 years of age  Individuals who have had a job for at least 2 years, with a minimum of 1 year with the current employer  Those who earn a minimum of 25,000 net income per month. 8. Lobby Management  9. Selling Skills Sales Narrative Construct Sequence A sales narrative is a structured approach to delivering a persuasive and engaging message to a potential customer. The sequence ensures the conversation flows logically and connects with the customer's needs. Catchment Mapping Catchment mapping is the process of identifying and analyzing a geographical area to understand the potential customer base and opportunities for sales. This is often used in banking, retail, and service industries to target specific demographics e ectively. Steps for Catchment Mapping: 1. Define the Area: o Use tools like maps or software (Google Maps, GIS) to mark the catchment area. o Focus on areas within a certain radius from your location. 2. Analyze Demographics:  o Study the population's age, income levels, occupations, and spending habits. o Identify the target audience for your product or service. 3. Evaluate Competition: o Identify competitors in the area and assess their strengths and weaknesses. 4. Identify Hotspots: o Locate areas with high footfall (e.g., malls, o ices, residential complexes) that could be potential sales hubs. 5. Sales Opportunities: o Map existing customers, leads, and prospects within the area. o Plan campaigns and outreach activities for high-potential zones. Selling Opportunities Selling opportunities refer to situations where there is potential to engage with customers and convert them into buyers. Identifying these requires analyzing customer needs, market trends, and leveraging existing resources. Key Selling Opportunities: 1. Cross-Selling: o O er complementary products or services to existing customers. o Example: Selling a fixed deposit plan to a home loan customer. 2. Up-Selling: o Encourage customers to purchase a higher-value or premium version of a product. o Example: Suggesting a higher credit card tier with additional benefits. 3. Life Events: o Target customers during key life events (marriage, buying a house, having children) with relevant o ers. 4. Seasonal Campaigns: o Leverage festivals, holidays, and end-of-season sales to promote products. 5. Customer Referrals: o Use satisfied customers to refer your product to friends or family. Pre-Approved O ers Pre-approved o ers are financial products (e.g., loans, credit cards) o ered to existing customers (ETB) based on their creditworthiness and existing relationship with the institution. These o ers streamline the application process, requiring minimal documentation and quicker approvals. Features of Pre-Approved O ers: 1. Eligibility-Based: o O ered to customers with good credit scores or a strong history with the institution. 2. Fast Processing: o Minimal documentation and faster disbursal compared to regular applications. 3. Exclusive Benefits: o Often include lower interest rates, waived processing fees, or special discounts. 4. Personalization: o Tailored to suit individual needs based on spending patterns, income, or credit usage. Examples of Pre-Approved O ers:  Pre-approved personal loans.  Pre-approved credit cards.  Special pricing on fixed deposits or insurance plans. How to Utilize Pre-Approved O ers: 1. Identify Eligible Customers: Use data analytics to find customers likely to qualify. 2. Communicate E ectively: Highlight the benefits and exclusivity of the o er. 3. Ensure Timely Follow-Up: Reach out via emails, SMS, or calls to ensure conversions. 10. UPI Transactions in Branch Banking Unified Payments Interface (UPI) is a real-time payment system that allows customers to link their bank accounts and make instant payments using their mobile devices. While UPI is primarily designed for digital and self-service channels, it also plays a role in branch banking to assist customers who may not be tech-savvy or lack digital access. How UPI Transactions Are Facilitated in Branch Banking 1. Customer Awareness and Education: o Branch sta educate customers about UPI features and benefits. o Demonstrate how to link bank accounts to UPI apps (e.g., PhonePe, Google Pay, Paytm). 2. Onboarding Assistance: o Help customers download UPI-enabled apps and register using their mobile number. o Guide them in creating a UPI ID and setting up a secure PIN. 3. Assisting with Transactions: o Fund Transfers: Assist customers in sending or receiving money using UPI through their registered apps. o Bill Payments: Help with utility payments, mobile recharges, or loan EMI payments using UPI. o Merchant Payments: Demonstrate scanning QR codes or using UPI IDs for purchases. 4. Troubleshooting: o Resolve issues related to failed transactions, incorrect UPI IDs, or PIN resets. o O er guidance on complaint registration for transaction failures or delays. 5. Alternative Options via Branch Systems: o Use UPI-linked payment solutions integrated into the bank's core systems for instant fund transfers on behalf of customers. 6. Awareness Campaigns in Branches: o Display UPI-related posters, brochures, and digital kiosks. o Host workshops or demonstrations to increase UPI adoption. Advantages of UPI in Branch Banking 1. Enhanced Customer Convenience: o Simplifies fund transfers without requiring account details or IFSC codes. 2. Real-Time Transactions: o Enables instant payments, reducing the dependency on traditional NEFT or RTGS methods.  3. Cost-E ective: o UPI transactions are often free or incur minimal charges compared to cheque clearing or demand drafts. 4. Improved Operational E iciency: o Reduces footfall for routine banking transactions by encouraging self-service through UPI. 5. Inclusivity: o Provides digital banking solutions to non-tech-savvy customers with branch assistance. Challenges in UPI Adoption via Branch Banking 1. Digital Illiteracy: o Many customers, especially in rural areas, may be unfamiliar with smartphones or UPI. 2. Security Concerns: o Customers may fear fraud or unauthorized access to their bank accounts. 3. Network Issues: o Dependence on mobile internet or network stability can limit adoption. 4. Resistance to Change: o Traditional banking customers may be hesitant to switch to UPI-based systems. Role of Branch Banking in UPI Adoption Branch banking acts as a bridge for digital inclusion by enabling customers to embrace UPI services. It provides hands-on support, enhances trust in digital platforms, and ensures smooth adoption of UPI as part of the overall banking experience. The bank sta can access the Client Service Portal (CSP) to check the status of UPI transactions. 11. Understanding Cheques and Material Alterations in Cheques A cheque is a written, dated, and signed instrument that directs a bank to pay a specific amount of money from a person's account to the bearer or a designated individual or entity. Cheques serve as a widely accepted method of payment for personal, business, and governmental transactions. Key Components of a Cheque:  Drawer: The account holder who writes the cheque.  Payee: The individual or entity to whom the cheque is payable.  Amount: The sum of money to be transferred, written both in words and numbers.  Date: The date on which the cheque is issued.  Signature: The drawer’s authorized signature to validate the cheque.  Bank Details: Includes the bank's name, branch, and the drawer's account number and bank code. Types of Cheques While not the primary focus, understanding the types of cheques can provide better context:  Bearer Cheque: Payable to the person holding the cheque.  Order Cheque: Payable to a specific person or entity named on the cheque.  Crossed Cheque: Contains two parallel lines on the top left corner, indicating that the cheque must be deposited directly into a bank account and not immediately cashed.  Post-Dated Cheque: Issued with a future date, instructing the bank to process it on or after that date.  Stale Cheque: A cheque that is presented for payment after a considerable time from its issuance, typically six months. Material Alteration in Cheques Material alterations refer to any significant changes made to the essential details of a cheque after it has been issued. These alterations can compromise the cheque’s integrity and authenticity, potentially leading to fraud or disputes. Common Types of Material Alterations: 1. Changing the Payee’s Name: Altering the name of the individual or entity to whom the cheque is payable. 2. Modifying the Amount: Changing the numerical or written amount on the cheque. 3. Altering the Date: Changing the date of issuance to a di erent date. 4. Changing Bank Details: Modifying the account number, bank code, or branch information. 5. Tampering with the Signature: Altering or forging the drawer’s signature.  6. Changing the Crossing: Converting a crossed cheque into an uncrossed cheque. Implications of Material Alterations:  Fraud Risk: Altered cheques can be used to divert funds illegally.  Dispute and Legal Issues: Discrepancies can lead to disputes between the drawer and payee and may result in legal actions.  Cheque Rejection: Banks may refuse to honor altered cheques, causing inconvenience and potential financial loss. What to Do if a Cheque is Altered If you suspect that a cheque has been materially altered: 1. Contact Your Bank Immediately: Inform them about the suspected alteration. 2. Notify the Payee: Let the intended recipient know to disregard the altered cheque. 3. File a Police Complaint: Report the fraud to law enforcement authorities. 4. Monitor Your Account: Regularly check your bank statements for unauthorized transactions. In case the crossing is cancelled then the Customer Care Executive should:  Get Signature verification done by the Branch Manager  Branch Manager to approve payment of cash by cheque.  In case of bearer cheque, obtain bearer’s ID proof.  Verify the instrument under Ultraviolet Lamp  Tele-confirm with the drawer. 12. Vault Operations Vault Operations are integral part of daily banking process. The guidelines and systematic processes decided by the Bank, within the framework of RBI, are to be followed at the branches. Batch Opening and Batch Closing o Branch batch must be opened by Authorizer / Branch Manager in FC option 6001 during ‘Beginning of the Day’. o Further, teller batch to be opened further in FC option 9001. o By ‘End of the Day,’ branch batch has to be closed in FC option 6002. o Prior to branch batch closure, the teller batch must close for the day using FC option 9005. Vault Cash Movement: Cash Opening o Vault is opened in dual custody by joint custodians. o The guard must be positioned in front of the vault during cash operations. o Record of Exchange (ROE) is prepared for cash being removed from vault and one copy of the ROE is kept in vault (for next 7 days) while another copy is kept with daily vouchers. ROE must be prepared every time when cash is moved out of the vault to cash counter or vice versa. o Cash is removed from vault and buy cash entry to be done by CCE in Flexcube fast path – 9007. Cash Closing o Physical cash is tallied with system cash by End of Day (EOD). ROE prepared and sell cash entry done in fast path 9008(Flexcube). o Cash is kept in vault under dual custody and total physical cash should tally with cash position report. Vault Keys o Vault Keys are maintained in Set1 and Set 2 and are held by dual custodians. o Keys are recorded in key register with custodian details holding particular key sets. o In case of any handover same is recorded in key register and verified by BM. o Any custodian holding key set 1 should not at any point of time, even at a later date (when they cease to hold key set 1), hold key set 2 and vice versa. o Keys should always be carried by custodian and should never be left in drawers. o Overnight the keys should be carried by custodian and kept securely. o In case of any transfer / leave / relieving, BM needs to ensure all keys are handed over to new custodian and duly entered in key register and verified. o Date and time of handover and name of custodian to be entered in key register. o Branch Manager does Fortnightly Surprise Key Verification. o Duplicate Keys of vault to be lodged in o -site location / branch which must be exchanged once in a year or when there is a change in Branch Manager whichever is earlier. The keys can also be exchanged in case of checking by auditors. o In cities which do not have another branch of HDFC Bank, the keys will be lodged with another bank for safe custody. o Authority for lodging and withdrawal of keys is given to BM and designated sta in the branch as per names updated in lodgment letter of keys. Cash Retention Limit Based on the business requirements cash holding limits or vault limits are prescribed for each branch. The limit set for each branch is called “Cash Retention Limit (CRL).” Cash Retention Limit -Importance & Process o Cash held at branch should not exceed the Cash Retention Limit (CRL). o Vault cash is insured to cover risks of dacoity, holdups, thefts, burglary etc. o Bank loses its recourse against the insurance company in case cash held is more than the sum assured. o Cash in the vault is idle money and do not generate revenue. What will the CCE/ Authorizer do if the vault limit on a particular day exceeds? o The CCE/ Authorizer need to make arrangement to send the excess cash to the nearest Currency Chest (O load the excess cash after entry in i-chest application). o If the cash holding limit on a particular day is more than the prescribed limit, then the CCE/ Authorizer needs to send ratification mail (at the end of the day) to the CLUSTER HEAD both for Indian currency and for foreign currency as well. (Foreign currency limit being USD 3000 or its equivalent). o The minimum deposit and withdrawal from the currency chest is Rs. 50,000/- and thereafter in multiples of Rs. 50,000/-. Cheque Payments Soiled, Mutilated, and Imperfect Notes All bank branches are required to display at their branch premises, at a prominent place, a board indicating the availability of note and coin exchange facility with the legend, “SOILED/ MUTILATED NOTES AND COINS ARE ACCEPTED AND EXCHANGED HERE” for information about the general public. Banks shall ensure that all their branches provide facilities for the exchange of notes and coins not only to their customers but also others. As per the new direction of RBI, banks are asked to exchange, free of charge, a small number of soiled notes up to 20 pieces with a maximum value of Rs.5000/ presented by a person, over their counter. Soiled Notes: A ‘soiled note’ is a note which must turn out to be dirty due to normal wear and tear and also includes a two-piece note pasted together. Where both the pieces of a note presented should belong to the same note and form the entire note with no essential feature missing. In case you have soiled notes in excess of 20 pieces or for a value of more than Rs.5000/-, banks may accept them, against receipt, for the value to be credited to your account later. However, banks would levy the service charge for notes presented in bulk (in excess of 20 pieces) towards the exchange of soiled notes. If the tendered value is above Rs.50000/- banks are expected to take the usual precautions in exchange for notes. Notes with Slogans/ Scribbling/ Stain etc.: (a) Notes with slogans, political or religious messages, scribbling, stain (including color stain), etc. are unfit for usage and circulation and go against the Clean Note Policy of RBI. (b) Such notes received from members of the public shall not be reissued for circulation and be remitted to the currency chest for onward remittance to RBI o ices. (c) Any note with slogans and message of a political or religious nature written across it ceases to be legal tender and the claim on such a note will be rejected under Rule 6(3) (iii) of NRR, 2009. Similarly, notes which are disfigured may also be rejected under Rule 6(3) (ii) of NRR, 2009. (d) All Bank notes with scribbling/stain (including color stain) on them continue to be legal tender. Such notes can be deposited or exchanged in any bank branch. Mutilated notes: When a portion is missing or is composed of more than two pieces, such notes are called ‘Mutilated Notes.’ You may present such mutilated/imperfect notes at bank counters for exchange. A non-chest branch of a bank should accept a small number of notes up to 5 pieces per day and adjudicate them and pay the value in accordance with Reserve Bank of India (Note Refund) Rules 2009. If the branch is unable to adjudicate the notes on its own, it may receive the notes presented by the depositor against a receipt and send them to its linked currency chest branch for adjudication and pay the value. The branches of banks shall take steps to see that private money changers or professional dealers of defective notes do not corner the exchange facilities. In case of mutilated or imperfect notes to be exchanged in bulk (more than 5 pieces or the value exceeding Rs.5000/-), you are required to send such notes directly to a nearby currency chest branch through insured post giving the details of your a/c no, branch name, IFSC, etc. or you may get them exchanged there in person. Currency chest branches receiving mutilated notes through a bank branch or insured post should credit the exchange value to the account of the sender by electronic means within 30 days of receipt of notes. The adjudication of claims in respect of notes of less than fifty rupees denomination shall be made in the following manner, namely, (i) if the area of the single largest undivided piece of the note presented is more than 50 percent of the area of the respective denomination, rounded o to the next complete square centimeter, full value on mutilated notes of the above denominations shall be payable; (ii) If the area of the largest undivided piece of the note presented is less than or equal to 50 percent of the area of the note, the claim shall be rejected. The payment of claim in respect of note of rupees fifty and above denominations shall be made in the following manner, namely-, (i) Full value of the mutilated notes of the above denominations shall be payable if the area of the single largest undivided piece of the note presented is more than 80 percent of the area of the respective denomination rounded o to the next complete square centimeter; (ii) if the undivided area of the single largest undivided piece of the note presented is equal to or more than 40 percent and less than or equal to 80 percent of the area of the respective denomination rounded o to the next complete square centimeter, half the value of the note is payable. (iii) If the area of the single largest undivided piece of the note is less than 40 percent, no value shall be payable, and the claim shall be rejected. iv) if the claim of mutilated notes of rupees fifty and above denominations consist of a note composed of two pieces of the same note and the two pieces, individually have an area equal to or more than 40 percent of the total area of the note in that denomination, then the claim may be refunded for full value of the note. Nonacceptance of Brittle or badly burnt charred Notes: Notes which have turned extremely brittle or are badly burnt, charred, or inseparably stuck up together and, therefore, cannot withstand normal handling, will not be accepted by the bank branches for exchange. Instead, the holders may tender these notes to the concerned Issue O ice of RBI where those notes will be adjudicated under a Special Procedure. Acceptance of small notes and coins: None of the bank branches shall refuse to accept small denomination notes and/or coins tendered at their counters. All coins in the denomination of 50 paise, ₹1, ₹2, ₹5, ₹10, and ₹20 of various sizes, themes, and designs issued from time to time by the Government of India continue to be legal tender. Handling of Counterfeit Notes o Banknotes tendered over the counter shall be examined for authenticity through machines. Similarly, banknotes received directly at the back o ice / currency chest through bulk tenders shall also be examined through machines. o No credit to customer’s account is to be given for Counterfeit Notes, if any, detected in the tender received over the counter or at the back-o ice / currency chest. o In no case, the Counterfeit Notes shall be returned to the tenderer or destroyed by the bank branches. o Notes determined as counterfeit shall be stamped as "COUNTERFEIT NOTE" and impounded in the prescribed format. Each such impounded note shall be recorded under authentication, in a separate register. o When a banknote tendered at the counter of a bank branch / back o ice and currency chest is found to be counterfeit, an acknowledgement receipt in the prescribed format must be issued to the tenderer, after stamping the note. The receipt, in running serial numbers, shall be authenticated by the cashier and tenderer. The receipt is to be issued even in cases where the tenderer is unwilling to countersign it. o The following procedure shall be followed while reporting incidence of detection of Counterfeit Note to the Police: o For cases of detection of Counterfeit Notes up to four (04) pieces in a single transaction, a consolidated report in the prescribed format shall be sent by the Nodal Bank O icer to the police authorities or the Nodal Police Station, along with the suspect Counterfeit Notes, at the end of the month.  o For cases of detection of Counterfeit Notes of five (05) or more pieces in a single transaction, the Counterfeit Notes shall be forwarded immediately by the Nodal Bank O icer to the local police authorities or the Nodal Police Station for investigation by filing FIR in the prescribed format. o A copy of the monthly consolidated report / FIR shall be sent to the Forged Note Vigilance Cell constituted at the Head O ice of the bank. o Acknowledgement of the police authorities concerned must be obtained for note/s forwarded to them (both for consolidated monthly statement and for filing of FIR). If the Counterfeit Notes are sent to the police by insured post, acknowledgement of receipt thereof by the police shall be invariably obtained and kept on record. A proper follow-up of receipt of acknowledgement from the police authorities is necessary. In case any di iculty is faced by the O ices / Branches due to reluctance of the police to receive monthly consolidated statement / file FIRs, the matter may be sorted out in consultation with the Nodal O icer of the police authority designated to coordinate matters relating to investigation of Counterfeit Notes cases. The list of Nodal Police Stations may be obtained from the concerned Issue O ice of the Reserve Bank of India. o To facilitate identification of people abetting circulation of Counterfeit Notes, banks are advised to cover the banking hall / area and counters under CCTV surveillance and preserve the recording as per their internal policy. o Banks shall also monitor the patterns / trends of such detection and suspicious trends / patterns shall be brought to the notice of RBI / Police authorities immediately. Flexcube Fast Path o 7017 - Check Batch Open o 7040 Teller Cash Position o 9001 Batch Open o 9007 Buy Cash from Vault o 9008 Sell Cash to Vault o 1001 Cash Withdrawal without Cheque o 1013 Cash Withdrawal o 1401 Cash Deposit 13. WOW Journey WOW Journey is a set of transactions initiated by the CCE through CRM with combination of registered mobile number + Customer ID or PAN or DOB. The customer receives a link and validates with OTP. The customer initiates the required transaction. CCE gets an update on CRM against the Service Request Number. For example, PAN Updation, Cheque Book Request, Stop Payment of Cheque, Address Change etc.