Mcb Internship Report

pic INTERNSHIP REPORT ON Islamic COMMERCIAL swan Instructed by Mr. Naveed Ahmed Lecturer Comsats Institute of In clayation engine room Pre moveed by Muhammad Hussain MBA-A Roll No. 65 Semester 3 DEDICATION I dedicate integral of my education on with my life to my beloved p bents and reckon t for each oneers, who were always gentle to me. May God Bless Them (Aamin). Muhammad Hussain TABLE OF limit 1. Preface 2. Introduction Of intrust 3. fictitious characters of shore 4. decision maker sum-up of MCB 5. record of MCB 6. Vision & Mission put inment of MCB 7. mer heaptile confide 8. severalisees & auras 19 9. forbiddenput & serve ups21 10. De subprogramment in MCB25 11. Management Hierarchy28 12. enthronisation savings wedgeing 13. Know Your guest 14. absolution Department 15. monetary commonwealthments 16. SWOT analysis 17. Work Per springed By Me 18. Findings 19. Recommandations inclose processing orbit owes a pivotal importance in the parsimony of ei ther province finished its variant functions. This basic motivator that stressed me to seduce whatsoever argot for Internship Training. Moreoer, the experience and practice learned during this tenure same(p)smart prove in truth helpful and facilitating in the forthcoming professional life.This reveal is the result of two months Internship go away, Islamic m bingleymaking(prenominal) locateory financial institution, Kot F beed, Sahiwal. The motive behind selecting this rim is that it is one of the Top 10 Asia, b grades. The fact remains that Islamic Commercial bank, posses an excel/cut and historical importance universeness the around senior and leading(p) in terms fluids and ope gait to Pakistan at solely(a) ages of life. I had with the strong belief that this advertise pull up stakes guide and just the readers to at a meeker describestand the functioning of banking administration and more(prenominal) significantly get down substanti wholly(pren ominal)y knowledge about Islamic Commercial bank.My utmost efforts to elaborate this report wit, material read, listened and observed. Yet, I feel that this period was non long decent to learn and down the stairsstand the complex and widespread functioning of banking orbit. I am solidly thankful to the built-in staff members of the aforesaid commencement for the affable and cooperative behavior during my internship. Muhammad Hussain MBA-A Roll No. 65 w ell-developed banking setup plays very significant character in the sparing development of a argona. edgeing sphere is precondition for the development of some(prenominal) country.The banking sector helps in prissy utilization of resources of the country by financing the less developed sector. It too helps to play along cumulative pick up in proper oddment with the bestow of those resources, which argon responsive to monetary demand. DEFINITION OF BANK. A bank is an institution, which deals in silver. I BROADLY SPEAKING affirms draw surplus bullion from the sight who argon non using it at that time, and lend to those who be in a position to mapping it for productive purposes. 2 IN urinateer(a) WORDS entrust bothwherely accepts the deposits from mankind re ease upable on demand or an other(prenominal)wise and pulling out by take outs.Drafts fiat and include some(prenominal) patch chest livery bank. BANK. The word bank is said to prolong been derived from the Italian words Bancus or Banque. The History of banking is transacted to be as other(a) as 200 B. C. PEGETS DEFINITION no one anybody. Corporate or otherwise can be a banker who does not I cave in genuine work out 2 overcompensate check-out procedures drawn on him 3 Collect substantiations for his nodes. HARTS DEFINITION. A hanker is one who is in the ordinary play of his disdain, honors handicaps drawn upon his by soulfulnesss from and for whom he ask rounds coin on current distinguish. fit TO THE BANKING COMPANIES ORDINANC, 1962SECTION 5(B) buzzw set up means a person transacting the business of accepting, for the purpose of impart or enthronization, of deposits from the humans, and withdrawal by hinderances, drafts, hunting lodge of otherwise, and inclined any stead office saving banks. IMPORTANCE OF BANKING. banks play very important role in the economic life of a nation. The out harvest-time of the economy is turn over upon the soundness of its banking system. Although banks so not pretend revolutionary wealthiness save borrow, exchange and consume. These make generation of wealth. In this way. They become most efficacious partners in the development of that country.To encourage the array of saving and to mobilize these savings is its basic purpose. commits deposit surplus from the public and and so advances the surpl purposes in the form of loans to the industrialists, agriculturists, businessmen and unemployed flock under different schemes so t hat they setup their own business. Thus banks help in detonator formation if in that location ar no banks, and and so in that location would be concentration of wealth in few take places great portion of wealth of a country would be idle. In the fewer developing countries rate of saving is very minor and callable to this rate of investiture and rate of driveth is very low.We can take hank just like a rawness in the economic grammatical construction and bang-up letd by it is like character reference line in it. As long as the blood is in circulation, the variety meat bequeath remain sound and healthy. If the blood is not provided to any pipe organ then the organ would become useless. So if the finance is not provided to gardening sector or to industrial sector, it leaves he destroyed. Loan facility provided by bank works as an incentive to the producer to increase production. swears provide transfer of defrayment facility, which is cheaper, quicker and safe.Many difficulties in the international stipend pass on been overcome and volume of legal proceeding has been change magnitude. These facilities atomic progeny 18 very more helpful for the development of trade and commerce. EVOLUTION OF BANKING IN INDO PAK SUB-CONTINENT The Indian rules of order was quite familiar with the banking, right for the beginning. on that point is also fit take the stand to show that during 51h century people were accustomed to use 1-lounds as a recognition investment. Loans were effrontery to the people against personal and other Securities such as or expo directs, superbs and other immovable properties.TYPES OF BANK Following is the list of miscellaneous types of banks key swear Commercial cant Exchange swear Industrial savings bank Agriculture Bank I. COMMERCIAL BANK The banks in any country speeded over with an objective to get the excessive money Form the public in the form of deposits and providing finance to the investors. These Banks argon in the ground for addition earning motive and in competition with each other. These banks ar providing the basic function to the clients in the form of deposits, Advances, remittances and others. Commercial Banking Scenario In PakistanAt the time of emancipation in 1947. ther were 38 scheduled banks with 195 offices in Pakistan. But by declination 3l, 1973 there were 14 scheduled Pakistani Commercial Banks with 3233 Branches in Pakistan and 74 Branches in the Foreign Countries communisation of banks was done on 1st January 1974 under the guinea pigization Ac 1 947 due to certain objectives. But it had ostracize effects on the efficiency of the banking sector. Afterwards, a Privatization heraldic bearing was set upon January 22nd, 1991. The Commission transferred many banks to the cloistered sector, i. e. Muslim commercial Bank and Allied Bank particular. The Govt. approved and permitted the establishment of 1 0 bran- rising private banks in August 1991 Functions o f commercial Banks I borrowing of money from clients in organize of term deposits (PLS Saving Current Deposits and Notice Deposits). 2 Lending of money to borrowers in shape of cash in in hand, short-term finances, and long-term finances under various names such as motive Finance, Small Finance, hard cash Finance. 3 Agency serve. 4 Remittance of money. 5 Foreign exchange business, irrelevant currency deposits. LCS, Imports and exports etc.ROLE OF COMMERCIAL BANKS IN THE ECONOMIC ontogenesis OF A COUNTRY Banks play an important role in the economic development of a country. If the banking system is unorganized and inefficient, it scores foodstuff adjustments and impediments in the adjoin of development. In Pakistan, the banking system is organized in well personal manner. The raise Bank of Pakistan since July 1st. 1984 stands at the apex and is responsible of the operation of the banking system. The other bands, which form the banking structure in Pakistan, argon playing role in hhe economic development of the country.The role of the commercial bank in the growth and development of the economy on sound and steady footings is discussed briefly as follows Mobilization of Resources The commercial banks be the most efficient organization of the economy in the mobilization the resources and making a profitable pool of these resources. pickings the Money from the savers and add it to the investors is the most prominent job of the hank backing knowledge drops The banks and other pecuniary institutions advance loans for the development projects that enhance the pace of boilers suit development of the country.These advances are make in both public and private sectors for the purpose of achieving a good and strong economic field to cattie on the other activities of trade and business. Creating Climate For superior Formation hood formation is done by the act of accepting peoples money and putting into Profitable ventures. This money so accumulated, make assertable the servingability of the needed capital by the investors. The investors on the other hand are able to get the needed gold that shortfall their requirements. aforethought(ip) DevelopmentWith the help of well-organized banking sector the brass is able to make good Implementation of its economic planning and can execute developmental activities for the upbeat of the society. Promotion of Saving Habit in that respect are persons who move over money still cannot put them in profitable use. The banks attract these persons by offer a variety of government noteing systems. They provide them not only the safety of the funds but also higher returns on them. The banks, in this way, promote the habit of saving among the people. Effective Implementation of Monetary PolicyWith the help of a good banking system in the country the government and the central Banks thwart the monetary supply and demand of the money. A good system helps in the implementation of the polic ies that are formulated by the government. l finished these banks using different techniques of credit swan makes credit expansion and contr activity. Narrowing regional Disparity The banks help in bridging the country. The surplus fund of on expanse is send to the centers of deficit. The less developed areas acquire funds, put them into productive pack and increase production.The banks help in a balanced growth the economy. Executive Summary incorporated PROFILE Mian Mohammad Mansha Chairman S. M. Muneer Vice Chairman Tariq Rafi Shahzad Saleem Sarmad Amin Aftab Ahmad gondola caravansary Atif Yaseen Dr. Muhammad Yaqub Mian Raza Mansha Atif Bajwa President / CEO Board Committees Audit Committee Dr. Muhammad Yaqub Chairman Tariq Rafi scratchMian Raza Mansha particle Atif Yaseen instalment HR Committee Mian Muhammad Mansha Chairman Dr. Muhammad Yaqub fellow member Mian Raza Mansha Member Atif Bajwa Member Risk Management Committee Mr. Tariq Rafi Chairman S. M.Muneer Member Mian Raza Mansha Member Aftab Ahmed Khan Member Committee on Physical Planning, IT System and chance Ar valuements Sarmad Amin Chairman Atif Yaseen Member Aftab Ahmad Khan Member Atif Bajwa MemberBusiness dodging & Development Committee Mian Mohammad Mansha Chairman S. M. Muneer Member Tariq Rafi Member Mian Raza Mansha Member Atif Bajwa Member accredit Committee Shahzad Saleem Chairman Sarmad Amin MemberTariq Rafi Member Mian Raza Mansha Member forefront Financial Officer Tahir Hassan Qureshi Company Secretary Abdus S. Sami Auditors KPMG Taseer Hadi & Co rent Accountants Riaz Ahmed & Co. leased Accountants Legal Advisors Mandviwalla & Zafar Advocates & Legal Consultants History of Muslim Commercial Bank The Muslim Commercial Bank Limited was incorporated on 9th July 1947 in Calcutta in Bengal. After partition, the Registered Office of the bank was hifted to Dhaka where it commenced business from August 1948. The Bank transferred its immortaliseed/ inquiry office f rom Dhaka to Karachi in 1956. In 1999, its depicted / Head office was transferred to Islamabad and Karachi office was named as principal office. The government transferred a 26% management stake to a group of leading industrialists, collectively named National Group of which Mian Mohammad Mansha is the Major stakeholder. In 1992 a pass on 24% was change to the National Group. The current constituentholding structure is 50% National Group, 25% government and 25% floated on bourses.NATIONALIZATION OF MCB Muslim Commercial Bank Limited was nationalized by the administration of Pakistan in January 1974 under the Banks Nationalization Act, 1974. Subsequent to nationalization the trading operations of premium Bank Limited were merged with the Muslim Commercial Bank Limited in June 1974. PRIVATIZATION OF MCB The previous Government declared the privatization insurance as one of its main objectives and in accordance with its policy, the Government offered Muslim Commercial Bank Limit ed for privatization. The Bank was the prototypical Public sector bank, which was privatized on 2nd April 1991.The Government of Pakistan transferred management of the bank to clandestine Industrialists and Entrepreneurs, National Group by selling 26% shares of the Bank at Rs. 56 per share. Present Status Over the years Muslim Commercial bank fostered strong bonds with its guests. MCB understands them their needs. They feel comfortable with MCB its their bank it responds to them listens to them partners with them grows with them. That is why it is one of the leading commercial banks of the country, providing a wide persona of modem banking swear outs.At present, the banking internet consists of over 1000 branches on with reign overling offices known as Area Head offices and Regional Head offices. These controlling offices are responsible for the smooth operation of the bank on National & international levels. The entire financial and functional objectives are fulfild wit h the Human Resources skill over 12000 employees. The bank is known as the study(ip) credit supplier, best place of working and paymaster in the financial (money market) of the country.Over the bypast few years, MCBs profits have been hit by the need to increase provisions coverage and restructuring costs associated with the downsizing of the hands and branch interlock, whilst there is some need to hike provisions, these charges (necessary to bring the bank back into shape) are largely over. It has also slowly trustworthy permission from the SBP to shut down a number of unprofitable branches. In 1999 EURO capital recognized MCB as the best domestic bank in Pakistan. The banking sector has been worst hit by the external account crisis that Engulfed the country pursuit the nuclear tests. Due to the nature of banks as aMedium for debt transactions the countrys technical default and subsequent rating downgrade impacted them the most. Those issue concerns are still not fully alleviated in the stance of the investors. The closest that investors have come to positive expectations regarding external account sustainability and a possible re- rating was back in the fourth quarter of the year 1999, and this led to MCB climbing to Pakistani rupees 56 per share. Resumption of the IMF funding and a possible rescheduling of bilateral debt allow positively impact the banking sector and particularly MCB. secernate Bank of Pakistan hold ond the process ofBanking Reforms, which included strong suiten of prudential Regulations and focus on recovery of defaulted loans. In 1999 return on Government nest egg intent and Treasury Bills was reduced, which led to a lowering of lending rates, resulting in erosion of margins for banks but it is likely to give a boost to economic activity. MCB rupee travelers Cheques continued to take for their leadership position in the industry and sales registered a 45% growth over detain year. MCB successfully introduced the Rs. 1 00, 000 denomination cheque countrywide and introduced RTC dialup tele-verification facility from Lahore city as well.Mainly there are lead types of Banking in MCB. These are CORPORATE AND INVESTMENT BANKING Corporate Banking Group of MCB is focusing on top designate local corporate groups and multinationals in a structured and focused manner building kinds leading to increased market share. Branches having Advances of Rs. 100, 000,000 per party relationship and supervise such advances are called as Corporate Branches. These branches include corporate clients and their requirements are notioned after(prenominal). There are about 20 corporate branches of MCB in Pakistan. OUR survey & MISSION Vision StatementTo be the leading financial goods provider, partnering with our customers for a more prosperous and secure future. Mission Statement We are a squad of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relations hips with our customers. In doing so, we ensure that our shareholders can invest in us with self-confidence. COMMERCIAL BANKING The Commercial Banking Group of MCB continues to service the trading confederacy and middle market, with sustained focus on developing saucily customer relationships and increasing the asset portfolio.CONSUMER BANKING The Consumer Banking Group focuses on the lower end of the market and micro credit. Individual customer needs are being serviced with the introduction of diverse lifestyle consumer loans and introduction of new products and partnerships with service providers. Customers will continue to use the extensive branch interlock, which in turn will generate deposits to feed the asset development and liquidity requirements of the Bank by its diversified and stable deposit base. atmosphere TECHNOLOGYAt MCB, engineering has a direct relationship with the needs of the customers, it is a mean of creating foster and gubbins for the customer. Over the last few years MCB has invested heavily into fortify its applied science backbone. Today it is leading the way in banking technology and climb new standards for the banking industry, penetrating into the local market, listening to the needs of the people. MCBs strength lies in providing technological base at a grass origination levels of the society with a challenge to educate and assimilate such systems crossways vast cultural and economic backgrounds.With over 768 automated branches, 243 online branches, over 151 MCBs cash dispensers in 27 cities across the nation and a network of over 16 banks on the MNet atmospheric relegate transposition, MCB continuously innovates new products and services that harness technology for the customers benefits. Additionally in order to enhance the profit of the air services they successfully linked their cash machine network to the MasterCard, cirrus cloud and passkey, effectively becoming part of the largest ATM network in the world. MasterCard and cirrhus/Maestro users can now access their ATMs network.Together with the above MCB make a strategic decision to establish an ATM switch and uncovered their ATM network to other banks. The ATM switch has been named MNET. It has following(a) banks in MNET switch Standard undertake Citi Bank MCB ATMSERVICES MCB ATM Card Welcome to a world of convenience with the MCB ATM 24- time of day Smart Card. It Works. Anytime in Pakistan and abroad. With an ever growing number of ATMs operating crosswise the nation, the MCB ATM Network is the largest and most advanced of its kind in the country, and is part of MCBs continuing efforts to provide you with convenience that suits your requirements most.And now the MCB ATM has gone global. MCBs standstill with Master Card International brings about added facilities for the MCB traveler abroad with the cirrus cloud and Maestro networks. So go ahead Use your MCB ATM 24- time of day Cash Card day or night, at home or abroad . MCB ATM Regular Card The MCB ATM Regular Card allows withdrawal of up to Rs. 10,000 per day and a maximum of 3 withdrawals per day per twit. pitchforkES & ATMs Mnet MNET enables all the member banks to share their electronic networks. Which means customers of member banks can use MNET as well as 1-Link ATMs Nationwide.MNET member banks ATM machines accept card game issued by MCB Bank Ltd, Citibank, Standard Chartered, HSBC, Saudi Pak Bank Limited, Habib Metropolitan Bank, JS Bank, Deutsche Bank, SME Bank, Arif Habib Rupali Bank and First Women Bank. MNET customers can use over 600,000 ATMs worldwide that carry the logotype and shop at over 5 million outlets that carry the logo. M-Net switch has soon 612 ATMs in 50 cities. We plan to have the network grow in faster pace in future as MCB itself will be adding more ATMs by the end of the year.The ATM deployment has been planned in such a manner that a customer will be only a few minutes away from an ATM in major cities. This coup led with geographic coverage provides the largest convenient spread in the country, because of which we are very strongly concentrating on Diverse Coverage & Convenience. M-Net thrash ATMs are present in all the major cities of the country. They are accessible in the hilliest and northern areas of the country such as Murree, Abbottabad and Swat etc olibanum providing convenience of accessing 24 hours cash to the customers across the country.M-Net switch also has its divine service Centers in the main cities of the country providing support to member banks customers. M-Net Switch ATMs are also present in all 3 main Airports of Pakistan i. e. , Jinnah terminal (Karachi), Allama Iqbal International Airport (Lahore) & Islamabad International Airport. MEMBER BANKS & their ATM Locations In Pakistan, the ATM facilities can be availed at any of the following locations MCB Bank Ltd. Standard Chartered CITIBANK Saudi Pak Bank limitedHSBC Habib Metropolitin Bank Arif Habib Rupali Bank D eutsche Bank First Women Bank SME Bank CORPORATE IMAGE mental synthesis In thought process of Goals established finished mission and vision statement, the first step interpreted was to change the corporate image of the Bank, which inclined following aspects In 1991 Bank changed its logo from to current logo which is Which signifies the growth and successfulness? The change of logo was part of effort to change image of the Bank as a progressive bank in the minds of people of country.A comprehensive electronic media campaign was erected with a logo Good Banking acquire even better stressing on the improvement. An on going process of search Lifting and renovation of MCB branches was started which is still going on. The purpose of it was to ensure the overall picket of the bank changes and employees get a better environment to work and customers of the bank feel more comfortable. NEW PRODUCTS AND SERVICES SINCE PRIVITIZATION In order to achieve long-term goals of expansion and p enetration in the market. Bank introduced various new products for its customers, which cater to the needs of various segments of the society.In order to do so, a constant process of market research, evaluation and development of New products was started which resulted in introduction of various new products which were earlier not introduced by any other Bank in the country. Introduction of these products was indeed a major source of penetration for the bank and turned out to be a differential factor as compared to other banks Prime Currency Accounts For strange currency deposits, (since 1991) Mahana Khushali Scheme A monthly income plan through deposit of a fixed sum in the account, (since 1991) Hajj Mubarik Scheme For intending Pilgrims, (since 1991)Capital developing Certificates It doubles the deposit of depositor in 5 years. It offers high rate of return and was introduced for fetching long-term deposit, (since 1991) PLS 365 Savings Accounts. Introduced high earning prod uct with gas of calculation of profit on daily product basis. No limitation on deposit withdrawals and Minimum deposit of Rs. 300,000/- (since 1992) Fund Management Scheme To generate funds to develop secondary market for Government Securities (from 1991 to 1992) MCB Khushali Bachat Accounts Savings accounts with added value to customers due to profit practise of daily product basis.MCB dollar mark Khushali Accounts For remote currency deposits, (launched in 1993) FAXPRESS A fast inter-city Remittance Service, (since 1991) MCB rupee travelers Cheques The most popular product of MCB, introduced rupee Traveler cheque for the very first time in the country and it immediately fetched high share of the market and MCB share is still growing (launched in 1993) Consultancy Services For intending buyers of State-owned enterprises being privatized, (since 1991) Self-Financing Scheme Mark-up free finance from 5000 to 25000. (since 1991) Night Banking Services (since 1991)Utility Bil ls exhibition Centers Separate utility Bills army centers were established for collection of utility bills (since 1994) MCB MasterCard (since 1994) EXPORTMOR Financing facility for exporter (since 1994) REMITEXPRESS A fast remittance service between Pakistan and pith East. (Since 1994) Personal Banking Services- In order to promote Consumer Banking system in the country a proper personal Banking service was started for High Net expense(predicate) clients of Bank in selected branches (since 1995) MCB Custodian Services Launched for local and international capital market clients.Online- The largest network of branches in the country and growing. Providing customers with 247 real time online facilities. MCB Call Center- Call now for answers to your queries-banking services, ATM services, mobile banking services, RTC services, telebanking services and MCB product information. The state of the art MCB call center is the right cream to keep you in step with your ever hectic sch edule by providing you services relating to your account and Smart card at any read/write head in time.Our well-abreast and friendly call center team is available 24 x 7, 365 days a year to ensure that your daily financial obligations are taken treat of guaranteeing you a good nights sleep. Cash Plus-Cash management services for corporate customers help customers substantially reduce their receivable collection time frame, improve cash flow and business management. Islamic banking services through exclusive units/ branches offering a range of indebtedness and asset based sharia compliant products like musharika, murabaha, ijara and istasana. MCB rambling banking-Banking at your figure tips. Dial in anytime to get information regarding balance and mini statements. At the forefront of technological excellence, MCB proudly introduces MCB MOBILE BANKING. The convenience of accessing your account balance information and mini statements whenever you want or wherever you whitethorn ne ed them, with comfort and peace of mind. MCB Mobile Banking service is available to all MCB ATM cardholders, 24 hours 365 days. Just call our Help blood line on 111-000-MCB(622) or any MCB online branch for assistance. Mobile Banking at a GlanceMCB Mobile Banking gives you easy and quick access to your account(s) at a time you find convenient, including all holidays. Banking at your Fingertips With MCB Mobile Banking you can restrain your balance View the last 4 transactions of your MCB account(s). A put down Service MCB Mobile Banking is a free service for MCB account holders who have an ATM card. All you pay for is the cost of an SMS message if charged by the service provider. MCB spiralers- The best protection for your valuables. Lockers of different capacities are available nationwide.Pyara ghar- waxy and competitive home financing facility with options of home purchase, construction and renovation. MCB car cash- Car financing and leasing at competitive rates with flexible options. Largest ATM Network- of 100 ATMs connected to worldwide ATM network of about 350,000 ATMs along with Cirrus and Maestro facility enabling MCB ATM card to be used All over the world & anywhere in the country. node SATISFACTION For any organization to succeed, it is extremely vital to ensure Customer Satisfaction.Banks being in service sector, it is highly important that high service standards be noteed and real value to their money is provided to its customers. In order to do so MCB took tierce revolutionary steps Provision of relatively batter service to its customers as compared to other banks through value added features of low cost, quick disposal of work and friendly environment. Modernization, Computerization of most of the branches enabled Bank stay abreast with the technology and provision of better service at the root level to its customers.Bank also started an ongoing process of Branch face lifting creating a better congenial environment for its customers. In order to be more customers conscious, MCB started a very effective and timely action system on Customer Complaints Departments in MCB Brief functions and responsibilities of sections at MCB are as follows. Human Resources and legal group ? Recruitment. ? Training. ? Transfer & posting. ? Promotions. ? Disputes. ? Staff loans. Banks operations group ? Policy. ? Premises. ? Capital & operating expenses processing. ? Return & consolidation. ? Reconciliation. ? Product sales. Relationship co-ordination. ? Service standards. ? Customer complaints. Financial Institution & overseas group ? Inter-bank exposure. ? Forex licensing. Financial control & Audit group ? Audit & internal control. ? Budgeting & planning. ? Monitoring of expenses. ? Financial reports. Credit & risk management group ? Credit proposal evaluation & analysis. ? Project financing. ? Monitoring of credit portfolio of bank. . Corporate banking group ? Placement of all multi-national & public sector companies. Consumer bank ing group ? Penetration in high net-worth customers. ? Earning increase. Customer retention. Commercial banking group ? Conduction of normal retail operations. Treasury & FX group ? bills management. ? Investment management. Assets management group/ Fraud control group ? sort out portfolio looks after. ? Special assets management. ? Restructuring / Rescheduling. ? Out of court eliminations Information technology group ? ATM / CIRRUS facilities. ? I. T. related franchise management. ? SWIFT system. ? On-line branches network look after. ? Hardware / software support. MCBs Management Hierarchy Business of MCB MCB is in its over 50 years of operation.It has network of over 1,100 branches all over the country with business establishments in Bangladesh, Sri Lanka and Bahrain. The branch break-up province wise is Punjab (57%), Sindh (21%), NWFP (19%) and Baluchistan (3%) several(prenominal)ly. MCB has an edge over other local banks, as it was the first privatized bank. The State Bank of Pakistan has restricted the number of The Consumer Banking of MCB provides customers with innovative saving schemes, products and services. The ATM network of MCB is the largest in Pakistan and the Pak Rupee Travelers Cheques are market leaders.MCB was the first to introduce the mental picture Card with the launch of the MCB MasterCard. The Corporate Banking of MCB ensures assistance from a dedicated team of professional financial advisors for underwriting, project finance or corporate consultive services. When it comes to banking practices, the consumer can depend on MCB, because itd been near for over fifty years. The State Bank of Pakistan has restricted the number of branches that can be opened by foreign banks, an advantage that MCB capitalizes because of its extensive branch network.Eight years after privatization, MCB is now in a consolidation stage designed to lock in the gains do in recent years and prepare the nates for future growth. The bank has restructured its asset portfolio and rationalized the cost structure in order to remain a low cost producer. MCB now focuses on three core businesses namely Corporate, Commercial and Consumer Banking. Corporate clientele includes public sector companies as well as large local and multi national concerns. MCB is also catering to the growing middle class by providing new asset and liability products.The Bank provides 24 hour banking convenience with the largest ATM network in Pakistan screen 9 cities with around 100 ATM locations. The Banks Rupee Traveler Cheques have been market leaders for the past six years. MCB looks with confidence at year 2002 and beyond, making strides towards fulfillment of its mission, to become the preferred provider of quality financial services in the country with profitability and accountability and to be the best place to work. Corporate Banking MCBs Corporate Banking aggroup consists of dedicated professionals with the requisite expertise to take care of the banking needs.The Corporate Bank with 20 branches has its presence in all major cities of Pakistan. The Area Offices are located in Karachi, Lahore and Islamabad. Corporate Platforms have been established in the three principal cities where teams of dedicated Relationship Managers have been posted. These Relationship Managers have been entrusted with the fat responsibility for managing the risk of their allocated portfolios, acting as allusion between the customer and the bank, and providing you with the entire range of products/services offered by the bank.The products/services of the Corporate Bank are broadly divided into the following categories Working Capital Loans The working capital loan includes Running Finance, Cash Finance, Export Refinance, Pre-shipment and Post-shipment etc. bourn Loans expand Short to Medium Term Finance to meet capital pulmonary tuberculosis of the customer business needs. Trade Finance Services Trade finances services that include an entire range of impo rt and export activities including issuing Letters of Credit (L/Cs), purchasing export documents, providing guarantees and other support services.Cash Management The network of about 1100 branches in Pakistan enables the bankers to collect and disburse payments expeditiously with the MCB cash management services. This also enables. the bankers to offer the customers select of paper based or electronic fund transfer solutions including collection occurs, rose branch on- line transactions etc. Investment Banking The Investment Banking Team of MCB has emerged as a leading player in Pakistans investment banking arena. The Team handles advisory, corporate finance and capital markets related transactions.Within these areas, the investment banking team of the MCB has developed expertise in the following areas of the investment Private Placements Debt/Equity Underwriting Term Finance Certificates Loan Syndication Arrangement of Non- Fund Facilities Mergers and Acquisitions Financial High lights The results for the year 2001 are reflective of sustaining all-around efforts over the few years, to economize profitable growth along with prudent and proactive risk management and expansion of product range of customers. Pre-profit for the year 2001 was Rs. 2. 0 million as against Rs. 1. 32 billion in 2000-a healthy increase of 59%. Growth in profitability is primarily due to fund-based activities through efficient assets and liability management. Fee based income was lower despite increase in volumes due to competitive pricing and discontinuation of charges on PLS accounts. Administrative expenses grew by 3% generally attributed to absorb effect of inflation and enhancement in Govt. levies. matter-of-fact efforts are, however, under way to manage costs in relation to revenues to further improve the revenue/expense ratio.Higher level of provisions was in the line with the Banks policy to upfront recognize business lending. In 2001, the Bank managed to recover Rs. 2. 19 billion as against Rs. 1. 97 billion in 2000. The balance sheet footings have increased to Rs. 187 billion from Rs. 175 billion primarily based on deposit growth. Deposits have registered a substantial increase of 14% and stand at Rs. 154. 5 billion in 2001 as against Rs. 136 billion in 2000. Despite of low PLS deposit rates, branch network has shown a commendable performance by increasing and managing the deposit mix.This has been possible by improvement in customer services and targeted sales of products like ATM cards. Net advances as at December 31, 2001 stood at Rs. 76. 6 billion, a reduction of Rs. 9. 8 billion. quest for credit from manufacturing and export clients fell considerably, post September 11,2001, which led to a reduction in advances as on the balance sheet find from a higher level during the year. Leadership in Rupee Travelers Cheques gross revenue have grown by 26% in the year 2001 and continue to reflect meteoric growth.With the extension of the generic brand, increase in the range of denomination backed by a powerful verification system and over 900 branches involved in this business. Leadership in ATMs With around 100 ATMs and 170 online branches, MCB is again an undoubted Indus leader with connectivity extended to 16 cities of Pakistan. In the year 2002 further ATM will be deployed and connectivity increased to other cities. MCB ATMs not only serve 24-hour cash convenience but also improve on the regaining services and turn around time at cash counters. The MCB ATM Master Card with Maestro and Cirrus networks has become a global ervice furthering the convenience to our customers. Traveling customers can access their account from a large number of internationally deployed ATMs and point of Sale (POS) units. The MCB ATM Switch MNET is now operational. IT GROUP of MCB has been able to create the largest network for secure electronic financial transactions in Pakistan. local branches of six international banks are connecting to this net work. This will enable participating banks to use each others ATMs resulting in an increased convenience to MCB customers and customers of other banks.The IT Group is currently expanding the network capability to provide the customers access to banking through multiple electronic channels. American distil Bank enters into an ATM manduction alliance with Muslim Commercial Bank Muslim Commercial Bank Limited and American Express Bank Ltd. signed a Memorandum Of Understanding creating a mutually beneficial alliance, which will enable customers of American Express Bank to use ATM facilities offered by Muslim Commercial Bank. Mr. Taufiq A. Hussain, Country Manager, American Express Bank Ltd. , Pakistan in a simple Lords Supper in Karachi, signed the MOU.MCB has setup an ATM Switch called MNET and American Express Bank is the fourth foreign bank to sign the sharing MOU. Speaking at the ceremony AEB Country Manager said, Customer service quality is the bum of AEBs philosophy and this initiative will significantly enhance our customer service capability for our consumer banking clients. He added After having considered various routes to acquire this capability AEB selected MCB as an ideal partner keeping in view the large network capability and long standing relationship with MCB.MCB with a network of over 1000 branches in the largest private sector bank of the country. The Bank is a market leader in 24 hour banking convenience with the largest nationwide ATM network covering 11 major cities in all provinces of the country. CITI bank and Muslim Commercial Bank sign ATM sharing agreement Muslim Commercial Bank and CITI Bank signed an ATM sharing agreement today. By the middle of this year, both Banks customers will be able to use the services of either Banks ATMs. Seen at the signingceremony are Mr.Haroon Basheer Sheikh, Head of Consumer Banking and Information Technology MCB and Mr. Nadeem Hussain, General Manager orbicular Manager Global Consumer Banking CITI Bank Pakistan with their several(prenominal) team members. Standard Chartered Grindlays and Muslim Commercial Bank to launch co-branded credit card Rated as Pakistans best banks (domestic and foreign respectively) by Euro money magazine Muslim Commercial Bank (MCB) and Standard Chartered Grindlays signed a Memorandum of Understanding to launch the first-ever joint servicing co-branded credit card in Pakistan.Under the organization the partnering banks will have shared as well as distributed responsibilities to service the customers in line with their respective strengths. The Partnership will derive its strength by combining the large diversified customer base of MCB and the train record of Standard Chartered Grindlays in managing a successful credit card business in Pakistan. MCB, the largest Private Bank in Pakistan, has over four million accounts domiciled in 1100 branches across the country.Standard Chartered Grindlays, the largest foreign bank in Pakistan, has over ninety t housand satisfied card members and is a leading international player in the cards business. With this new initiative the customers product of the two leading banks in Pakistan. This agreement further strengthens the relationship between these two banks earlier this year Standard Chartered Grindlays signed an agreement to join MCBs switch/ATM network, the largest in the country.FAYSAL BANK LIMITED to sell Muslim Commercial Banks Rupee travelers cheques Muslim Commercial Bank Limited and Faysal Bank Limited signed an agreement for the Sale and purchase of MCB Rupee Travelers Cheques at all 11 Faysal Bank branches in Pakistan. Main categories of Account first step form Type of Account There is a category of Type of Account , the customer can check any option to open a certain account. Following are certain kinds of accounts Current PLS-Saving MCB Saving-365 Khushali Bachat PLS Term Deposit New Foreign Currency Account (Current/Saving) CurrencyThere is a category of Currency in the for m In this section there are four kinds of currencies are given in which MCB opens account. They are Pakistani Rupee US dollar record of Account There is a category of nature of account i. e. Individual Partnership touch on proprietor Joint stock company Introduction Before break an account a banker should ascertain weather or not the person desirous of opening the account is a desirable customer. There is fictitious character section in the form in which the person who wants to open an account must provide a reference of a person who has already an account with MCB.For current account only reference of current account holder is accepted whereas for saving account reference of any whether current or saving is allowed. Preliminary investigation is necessary because of the following reasons ? To quash frauds ? Safe guard against unintended overdrafts ? To avoid negligence ? To replay inquiries against clients ? To approve with Prudential Regulations/Laws There is a specimen touc h card with the bank on which the mite of account holder is to be taken composition opening of his account. And then he is issued with a cheque carry.It is advised that one must keep his cheque book under proper care but there are consequences that people sometimes lost their cheque books. In that look there is an industry form in the name of managing director is available and the customer who wants to get a new cheque book fills that form and gives it to the manager then he is provided with a new cheque book. In other case a requisition position is present in the cheque book and whenever the customer wants a new cheque book he simply fills that requisition drift and presents it to manager and gets a new cheque book.Know your Customer In view of recent heightened global efforts to prevent the possible use of the banking sector for money laundering, terrorist financing, transfer of illegal/ill-gotten monies and as a conduit for white snatch crime etc, the importance of Know your Customer has increased. The objective of knowing a customer is to have a fair idea about the identity, financial resources and general information about the customer at the time when the relationship is established. A banker must have following information about the customer Customers NameEnter complete name as mentioned in sea captain Identity Card/other business documents. Nature of Business/Profession If the customer is of salaried class then banker will enter his employers name. If the customer is a businessman, trader, sole proprietor, then the banker will enter the business name. in like manner enter the customers patronage/position and channelise of the employer/business. Addresses with P. O. Box are not acceptable. Similarly remarks like Private Service, Business are not acceptable, rather make up ones mind what type of company/business the customer is associated with.In case of individual(a) his attested Photocopy of national identity card or testimonial is a sk, in case of salaried person, attested chase away of his sarvice card. In case of partnership attested photocopy of identity cards of all partners is required and attested photo copy of Partner ship Deed along with a copy of Registration certificate with registrar of firms. In case of Company, Memorandom and Article of association, certificate of incorporation, certificate of commencement of business and attested photocopy of identity cards of all the directors is required. AddressEnter the complete residential/business channelize. Within the brackets you may also provide prominent address identification marks for ease of physically locating the address. Contact weigh Enter home, official, mobile, fax numbers and e-mail address (if available). Special operating instructions Clear-cut operational instructions must be obtained from the customers. If the customer has not given any special instructions in condition tugboat, the column must be cancelled by drawing a line, as this column must not be left blank under any circumstances. The bankers considered the following points while opening the accountsRemittances Department The next department I worked in is Remittances department. The incharge of this department, Mr. Khalid told me that there are four kinds of remittances they deal in ? Telegraphic Transfer ? Mail transfer ? Demand Draft ? Pay order Another task of this department was to issue the traveler cheque and to give the ATM card numbers. Here is a little incident of all of these works Telegraphic Transfer It is a facility provided by the bank through which a customer can send or transfer any fall immediately. The procedure for the customer is simple.And more importantly the person who wants to transfer the funds may not have the account in the bank even then he can avail this facility. The procedure is like this, a customer walks in and fills an application form named as APPLICATION FOR REMITTANCE in which he mentions the bank to which he wants to transfer the funds also the name of the payee, his account number, also he has to mention his own address etc. then there are charges for this special facility provided by the bank and the bank detects these from the person who is displace the funds. Further there are two kinds of telegraphic transfersOrdinary TT TT The ordinary TT reaches to its destination after two days of its dispatchment whereas simple TT reaches to its payee immediately because the payee branch is informed immediately through telephone and fax. For ordinary TT only two vouchers are fain Commission Voucher Postage Voucher Whereas for TT three vouchers are vigilant Commission Postage Telephone charges In the application form of TT there are two options available for the person who is send the funds i. e whether the payees account is credited for the same come up or payee is simply to receive the payment in hand. Documents PreparedThe documents that are prepared for the TT are TT register Remittances Conf irmation of cable sent And afterwards whole of these information are recorded in a big register named as Branch outward remittance register And after this procedure the respective branch is informed through telephone. Recommendations This whole procedure is quite lengthy and hectic. So the only recommendation that could be given is, it must be computerized Another task of the accounts department is to give the customers the ATM card number. The procedure is like this that when a customer applies for the ATM card, he is given a certain time to collect the card.On due date the customers gets his card from manager and for safety purpose the ATM number remains with the account department and the customer gets his number from there. Traveler cheque In account deptt there are two people working. Ones job is to issue the traveler cheque and the other is suppose to make the payment of TC. This work is let outd for the purpose of safety and to prevent the frauds. When RTC is issued it is wr itten in Traveler cheque register and when it is give it is posted in MBIS. Traveler cheque register is used to maintain the stock of RTCs.When RTC is issued HO RTC deptt. Is credited and when RTC is purchased it is debited. One of the person has the complete register of staffs compensation he maintains a staff salary register. The remittance facilities of the MCB are according to the need of the customer. Your beneficiary will receive the amount even if he/she does not have an MCB account. The Remit Express facilities the MCB can be avail in the following Bank/Companies Demand draft Demand Draft can be explained as the doer which is payable on demand as its name implies the same, the value of which has already been trustworthy.This instrument is issued by one branch and payable at other branch of same bank or other banks branch e. g. DD issued by MCB payable by ACBL. performance of issuance The customer wants to make the DD fills in the same form or application i. e of remitta nces in which he mentions the DD, the beneficiarys name, the place, the mode of payment i. e, whther he wants the payee to receive the cash, cheque or debit his account, signature and his name and address Check the application form. Commission is charged as per bank policy. Also excise duty & withholding tax are recovered as per applicable rates.Entry is then made in DD issued register. In the DD issued register, separate folio is allotted for each drawee branch and a serial control number is applied. The entries made is DD payable account is credited and cash is debited and when the payee receives the cash against DD, DD payable account is debited and cash is credited. Procedure of Cancellation of D. D. On receiving the application for cancellation in writing along with original DD the signature of the applicant is verified This signature should tally with the signature on DD application form. hence cancellation is marked in DD issued register and the drawee branch is Informed abou t cancellation. Issuance of Duplicate DD In case of Lost/Stop Payment Application is real and signature is verified, then the drawee branch is informed about the loss of DD and further they are advised to tell the branch the status of DD i. e whether it has been paid or not. Then a matching of DD is issued with Duplicate in lieu of original DD No____ dated____ reported lost written on its face. The extra DD will have the same control number. PAY ORDERSPay order is a kind of instrument issued and paid in the same branch. It is normally issued for payment in the same city. Procedure of Issuance of Pay order The customer fills the remittances application form and mark check on pay order. On receiving application he is issued with a pay order after receiving charges. All pay orders are crossed i. e Payees a/c only Procedure of Cancellation of Pay order On receiving application for cancellation of pay order along with the pay order, it is cancelled and cancellation charges are recover ed. Duplicate Pay OrderIf the payment of pay order has not yet been made a duplicate copy of it can be made on receiving application from the customer. The duplicate charges are recovered from customer. elucidation Department modify Clearing implies a system by which banks exchange cheques and other assignable instruments drawn on each other within a specified area and thereby secure payment for their clients through the alter house at specified time in an efficient way. Clearing household In past State bank was indulged in clearing function i. e for the settlement of mutual obligations of different commercial banks.As all banks have their accounts and keep a certain percentage of the cash deposits as a arrest with Central Bank, it become easy to set up their mutual obligations by off-setting their accounts. The claim of banks against each other is settled by simple transfers from and to their accounts. These methods of cave in accounts though the central bank, apart from bein g convenient is economical as regards the use of cash since account are adjusted through accounts, there is usually no need for cash. At present this function of state bank is performed by NIFT.And now clearing house is a place where NIFTs representatives of all scheduled banks sit together and interchange their claims against each other with the help of controlling staff of State Bank of Pakistan and where there is no branch of State Bank of Pakistan the designated branch of National Bank of Pakistan acts as controlling member instead of State Bank of Pakistan. Reasons of Cancellation of rank When a bank is no longer a scheduled bank. When any bank fails to meet its liabilities. When It is prohibited to receive fresh deposits by State Bank of Pakistan or Central Government.Advantages of Clearing dAs clearing does not involve any cash etc and all the transaction takes place through book entries, the number of transactions can be unlimited. dNo cash is needed, as such the risks of ro bbery, embezzlements and pilferage are get alongly eliminated. dAs major payments are made through clearing, the banks came manage cash payments at the counters with a minimum amount of cash in vaults. dA lot of time, cost and labor are saved. Since it provides an extra service to the customers of banks without any service charges or costs, more and more people are inclined and attracted towards banking.Rules & Regulations of Clearing bear Timing -Monday through Saturday 1st Clearing 10. 00 A. M. 2nd Clearing 2. 30 P. M. ? Cheques and other movable instruments are sent through NIFTs representative for exchange. ? All the cheques and negotiable instruments must be properly stamped and suitably discharged ? Each and every Cheque must be accompanied by an objection memoranda when returned unpaid duly initialed. ? Each bank is required to maintain sufficient funds in the principal account with SBP to meet the payment obligations. The State Bank of Pakistan debits the account of ea ch member of the clearinghouse with the proportionate working expenses incurred on the operation of clearing house. These expenses are very nominal. Functioning of Clearing House All the scheduled banks which are the member of clearing house, must maintain accounts with SBP, by debit and credit to which the clearing settlements are made. If on a particular day, a bank delivers Cheque and other negotiable instruments worth more than the total amount of Cheque received by it that banks account with State Bank of Pakistan will be credited with the differential amount.If on the other hand the total amount of Cheque and other negotiable instruments drawn on a certain bank by other banks is more than the total amount receivable by it from other banks, then this banks account will be debited on that day. The Cheque delivered to the other banks through NIFTs representatives for clearing are called outward clearing whereas Cheque received from the representatives of other banks for payment a re called inward clearing. How settlement is done in NIFT? Presume that MCB got the Cheque, which are drawn on merger BANK, UBL and ACBL for amounts Rs. 50,000/-, Rs. 30,000/-, Rs. 5,000/- respectively, its total being Rs. 95,000/-. It means that this amount is to be credited to MCB A/c with S. B. P. On the other hand the Cheques drawn on MCB are from UNION BANK, UBL & ACBL of Rs. 15,000/- Rs. 75,000/- and Rs. 30,000/- respectively, its total being Rs. 1,20,000/-. It means that this amount is to be debited from MCB A/c. The going between Rs. 95. 000/- credit and Rs. 120. 000/- debit is Rs. 25,000/- debit, which means the house, is against MCB for Rs. 25,000/-. If we separately show it then, MCB has to receive Rs. 50,000/- from UNION BANK and to pay Rs. 15,000/- to UNION BANK so difference is Rs. 5,000/- credit. MCB has to receive Rs. 30,000/- from UBL and to pay Rs. 75,000/- to UBL so difference is Rs. 45,000/- debit. MCB has to receive from ACBL Rs. 15,000/- and to pay Rs. 30,000 /- to MCB so difference is Rs. 15,000/- debit. GRAND TOTAL + 35,000, 45,000, -15,000 = -25,000 i. e. Rs. 25,000/- debit. Hence MCB A/c with State Bank of Pakistan will be debited with Rs. 25,000/- and the contra will be other banks accounts respectively. This is called as debit entry and Credit Rule. The amounts and number of instruments received are entered in the House Book from the main schedules of the respective banks.The State Bank of Pakistan maintains two major books for clearing house purpose - HOUSE REGISTER. This book contains the information about the amounts and number of cheques received and delivered by each bank is noted down. Its columns are just like our clearing house-page. HOUSE BALANCE BOOK This book contains the amount and number of cheques received and delivered by each bank as well as the amounts which are to be received and paid to respective banks through their accounts by State Bank of Pakistan is written down. This book has the following columns- Initia ls To Pay Amount No. f Cheques Received/Delivered Name of BankReceived Amount To Received AmountInitials Both sides of this book are balanced. Vouchers are prepared from the slips received from the respective banks and the amounts are compared with this balance book. Summary of Clearing House Working The working of clearing house may be summarized as under- ? The instruments are delivered to the respective banks. ? The instruments drawn on our Bank are received from other banks. ? The amount and number of instruments received are entered in the House Book from the main schedules of respective banks. The amount of instruments delivered, received and the difference is written on a Figure slip provided in the clearinghouse and the slip is returned to the supervisor. ? The instruments are arranged branch-wise. ? Schedules are detached and unbroken safely. OUTWARD modify AT THE BRANCH The following points are to be taken into consideration white an instrument is accepted at the counte r to be presented in external Clearing ? The name of the branch appears on its face where it is drawn on. ? It should not be stale or post dated or without date. ? Amount in words and figures does not differ. skin senses of the drawer appears on the face of instrument. ? Instrument is not mutilated. ? There should be no material alteration if so, it should be properly authenticated. ? If order instrument, suitably endorsed and the last endorsees account being credited. ? Endorsement is in accordance with the crossings if any. ? The amount of the instrument is same as mentioned on the paying-in-slip and counterfoil. ? The title of account on the paying-in-slip is that of payee or endorsee (with the exception of bearer cheque). If an instrument is in order then our banks special crossing stamp is affix across the face of the instrument.Clearing stamp is affixed on the face of the instruments, paying-in-slip and counterfoil (The stamp is affixed in such a manner that half(a) appears on paying-in-slip and half on counterfoil). The instrument is suitably discharged, where a bearer cheque does not require any discharge and also an instrument in advance of a bank need not be discharged. The instrument along with paying-in-slip is retained while the counterfoil is given to the customer duly signed. Then the following steps are to be taken- ? The particulars of the instruments and the pay-in-slips or credit vouchers are entered in the Outward Clearing Register. Serial number is given to each voucher. ? The register is balanced, the credit vouchers are separated from the instruments and are released to respective departments against acknowledgement in the register. ? The instruments are arranged bank-wise. ? The schedules are prepared in triplicate, two copies of which are attached with the relevant instruments and the third is kept as office copy. ? The house page is prepared from schedules in triplicate. ? The Officer Incharge with branch stamp signs the schedules and house pages. ? The grand total of the house page is taken and agreed with that of the outward clearing register. The instruments along with duplicate schedules and house-page are sent to the Main Office. ? However the amount is kept in float till final status of various instruments is known from respective paying banks in second dealing. The entry of the instruments returned unpaid is made in Cheques Returned Register. If the instrument is not to be presented again in clearing then a covering memo is prepared. The covering memo along with returned instrument and objection memo is sent to the customer who deposited the same in his account. inbound CLEARING OF THE BRANCH The particulars of the instruments are compared with the list. The instruments are detached and sorted out department-wise. ? The entry is made in the Inward Clearing Register (Serial Number, instrument number, Account number and amount of instrument is written). ? The instruments are sent to the respective depar tments against acknowledgement in the Inward Clearing Register. ? The instruments are scrutinized in each respect in the lead honoring the same. OUTWARD CHEQUES RETURNED UNPAID These are the cheques returned unpaid by us presented to us in Inward Clearing due to some objections. INWARD CHEQUES RETURNED UNPAID These are the cheques returned unpaid to us, which were lodged by us in Outward Clearing.RETURN OF CHEQUES AFTER CLEARING HOUSE Suppose all cheques received in the inward clearing are passed and later on it is rear that a cheque should have been returned. In such cases, we contact the put in branch and request them not to make payment against the proceeds of the cheque which was not returned unpaid by us in due time. The cheque with objection memo along with a covering letter is sent to the collecting branch, making request to issue a payment order in our favor. To balance the cash-cum-day book we may debit Suspense A/c Sundry Debtors with the approval of the manager.When th e payment order is received, it is lodged in clearing and the Suspense A/c -Sundry Debtor is adjusted accordingly. SPECIAL CLEARING In addition to the normal clearing function at Clearing House it is mutually agreed to hold an extra clearing at the Clearing House on a particular day and time, which is known, as Special Clearing. It is arranged due to rush of work arising out of say, m