CUSTOMER SERVICES DEPARTMENT Account opening and closing is the function of customer services department.

The banks customers includes individuals (single or joint), firm (partnership/proprietorship), Autonomous corporations, Limited companies, Charitable Institutions, associations, Educational Institutions or local bodies. Brief Explanation of these accounts is as follows 3.2.1 Products offered by this department: a) Riba Free Rupee Savings Account Current account Saving Account

b) Riba Free Dollar Savings Account Foreign Currency Account

3.2.2 BASIC OF ACCOUNT OPENING Account opening is the basic and first relationship, which is established between Bank and the customer. In account opening extreme care has to be exercised in case of completion of account opening documentation. Whenever a client comes in the bank in order to open an account the first information that is given to him/her about the types of accounts, which can be opened, so far this purpose the client is given detailed information about the accounts and their respective profit rates. 3.2.3 TYPE OF ACCOUNTS OPENED CURRENT SAVING TERM DEPOSIT

3.2.4 Sub-categories of Accounts and the Basic Requirements: MINOR ACCOUNT Bay form and copy of passport minor National Identity card of Guardian Signature requirement of guardian

INDIVIDUAL ACCOUNT Copy of national identity card Complete account opening form Letter of introduction if required Visiting Card (if the person is employed)

JOINT ACCOUNTS As evident from the name these accounts can be jointly opened by any number of persons. The minimum number of persons required to open a joint account is two but there is no maximum limit. Requirements: National Identity card of all Applicants. Signature of all Applicants. Zakat Affidavit of all Applicants (zakat Exemption). Operation of account clearly mentioned. The options available to operate the account are: Jointly Either or Survivor Other(s)(Please specify)

CLUB /SOCIETY/ASSOCIATION [Requirements]: Certified copy of resolution Certified copy of rules Copies of National Identity cards of all directors/passports Completed account opening form Specimen Signature Card

TRUSTS ACCOUNTS Completed account opening form Specimen Signature Card Certified copy of trust deed Copy of rules/by laws Copies of National Identity cards of all trustees

ACCOUNTS OF SOLE PROPRIETOR (Requirements) Declaration Letter Copy of NIC/Passport of the proprietor National Tax Certificate Declaration of Sole Proprietor on company letterhead Business registration Certificate Specimen Signature Cards and completed account opening form.

ACCOUNT OF PARTNARSHIP (Requirements) Partnership Deed, certified copy. Photocopies of NIC of all partners. Partnership Mandate (Prescribed Format).

ACCOUNT OF LIMITED COMPANIES (Requirements) List of Directors of company. NIC of all Directors. Copy of certificate of Incorporation. Memorandum of Association. Article of Association. Copy of Board Resolution. Latest Copy of Form-29 Stamp of Company, which is to be affixed on the account opening form. Certificate of Commencement of Business

ACCOUNTS OF LITERATE [Photo Account] These accounts can be opened individually or jointly. For men, the right hand thumb impression and for women, the left hand thumb impression is taken on account opening form.

The customer is given advice to come to bank by himself in order to withdraw any cash or deposit the cheque. Requirements: Photocopy of NIC of Account Holder. Two-three passport size photographs.

3.2.5 PROCEDURES FOR ACCOUNT OPENING First of all, after inquiring from the customer what type of account he/she wants to open, the account opening form is got filled from the customer and signed it. Along with the account opening form, the customer is also signed two Specimen Signatures Cards. After fulfilling all the formalities of account opening, the computer generated account number is given to the customer that is of special series depending on the type of account. REQUISITION SLIP A requisition slip is given to the customer to sign it so that the customer can get chequebook. Chequebook is issued after one day of receiving the requisition slip. LETTER OF THANKS After opening the account A Letter of Thanks is sent to the customer in order to thank the customer for opening an account in the Bank. This letter tells all the information regarding his/her accounts, which are kept very confidential. ACCOUNT OPENING REGISTER After an account is opened, an entry is made in the account opening register, which has the following columns:

Date Account Number Name & Address Telephone Number Initial Deposit

Customer Services/Relation Officer enters the new account opened in computer and the Specimen signature Cards are also scanned so that whenever a cheque of the respective account comes for encashment, the signatures can be verified. 3.2.6 Overall functions performed by Customer Services Department: ACCOUNT OPENING ACCOUNT CLOSING GENERAL CLIENT DEALING

3.3 OPERATIONS DEPARTMENT 3.3.1 FUNCTIONS PERFOMED: 3.3.1.1 CLEARING 3.3.1.2 REMITTANCE 3.3.1.1 CLEARING In clearing process, if the account holder of MBL receives the cheque of other bank like City Bank, Habib Bank Limited etc, and he submits it in MBL branch to be cashed. At the same time the clearing process starts. First the bank name, Cheque number and the amount are written in the register. After this three kind of stamps are required first bank name stamp, secondly clearing stamp of next date and If the cheque is not local then the inter city clearing stamp is required. Some cheques are local and some are outstation. The institution N.I.F.T. provides the services in clearing the cheque. They send the different cheque to different banks. The N.I.F.T service is only in few cities, like Karachi, Lahore, Rawalpindi. The cheque of inter city is send through N.I.F.T. And where, the N.I.F.T service is not available so the cheque is sent through T.C.S. The clearance of cheque is informed through advice. Some cheque is not passed so they should return so Rs. 100 is deducted and if the cheque is inter city then the postage charges is deducted. For this purpose the Debit & Credit voucher is used. When the cheque is cleared the today stamp is required. Some cheque is drawn on MBL. This is called outward clearing. These cheques will be entered in the outward clearing register. And the advice is sent for the clearance of cheques. The account holder account is credited. Inward clearing Outward clearing

INWARD CLEARING

In the morning, the bank receives its own cheques, which have been presented by the customers in some other bank to be deposited in their account. NIFT provides the facility of bringing cheques for inward and also takes the cheques of outward clearing to other banks. The cheques received in inward clearing are the cheques drawn on bank and the bank has to pay for them. For this purpose the bank makes clearing in computer by checking the balances of the respective customer, if their balances are up to the mark then that cheque is cleared and the respective customer account is debited with the respective amount. If the balances are short then that cheque is bounced back to the related bank. Reasons for returning a cheque: All required stamps of Clearing, Crossing and Endorsement are not present on cheques. Cheque is post date. Refer to drawer Effects not cleared, may be presented again Amounts in words and figures differ. If any of these reasons exists then that cheque is returned through NIFT and deducts Rs. 300 from customer account as cheque returned charges. Then the report of returning any cheque is sent through fax to the head office Karachi. After this put the entry in Cheque return register showing the following columns: Date Title of account Account number Cheque number Bank and Branch name Reason to return

OUTWARD CLEARING: All the cheques of other banks which are deposited to MBL are presented in outward clearing. This is said as outward clearing because they are presented on the very next day after depositing a cheque. SERVICES PROVIDED BY CLEARING FUNCTION

I. TRANSFER OF AMOUNT II. TELLING ACCOUNT BALANCES III. ISSUING CHEQUE BOOKS I. TRANSFER OF AMOUNT If a customer holds two accounts in the bank and he/she wants to transfer money from one account to other account, customer writes a cheque and fills deposit slip in which he/she writes account number to which amount is to be transferred. After making transfer entry in the computer, affix transfer stamp in the middle of the cheque, crossing on the upper left and banks endorsement stamp on the backside of the cheque.

II. TELLING ACCOUNT BALANCES Whenever clearing officer receives phone call from the customer inquiring about his/her account balance after confirming the name, address and other information he tells the balance through computer. III. ISSUING CHEQUE BOOKS It is also the duty of department to issue a chequebook when an officer receives request from the customer. 3.3.1.2 REMITTANCE Another important department in MBL is Remittances Department. The remittances department transfers the funds from one bank to other bank and from one place to another place. In remittances department the collection take place. The MBL made payment of only open cheques on the counter and prohibits the payment of crossed cheques. MBL transfers money from one place to another by the following means: a) Pay order b) Demand drafts c) Inward collection d) Outward collection a) PAY ORDER: Pay order is an order to pay money but this payment is to be made within city. In other words it can be said that the payee and the payer should be in one city.

In pay order the payment can be made in A) Cash B) C) Clearing Transfer

PROCEDURE: In case of pay order first of all the customer has to fill a pay order application form in favoring section: name, account number, amount, beneficiary name, address, etc. The data is entered in already set format of pay order in computer and pay order print out is taken. An authorized person and manager operations are signed pay order. The original copy of the pay order is given to the customer and carbon copy is kept with bank for office record. b) DEMAND DRAFT An order to pay money to the payee who is residing outside the city. DD can be for a customer who may or may not have an account in the bank but the other persons account must be maintained with the bank for which the payer has demanded the DD. c) INWARD COLLECTION When the bank receives cheques of any other bank from its any branch situated in the some other city, then those have been dealt as inward collection. 3.3.1.3 OTHER FUNCTIONS UNDER OPERATIONS DEPARTMENT a) LOCKERS Lockers operations shall not be permitted under power of attorney of a customer. A customer wishing to allow another person or agent may be requested to open a new locker account under joint names and close the existing account. In offering this facility branches have to be selective and should provide lockers to the customers whose identity and integrity is verified, who should maintain account with the branch and have potential for deposits and other banking business. It is reiterated that honesty, creditability and good reputation of the customer is of utmost importance in the selection of customer for lockers. KEY FEATURES: Available in selected branches Available in 3 sizes (small, medium and large)

 Procedure

For all eligible Account Holders Key security Deposit PKR 3000

Application on Prescribed Form duly filled Saving/Current Account with MBL 02 Passport size Photographs

b) Cheque Books Handling Application for New Cheque Book

3.3.1.4 RIBA FREE TERM DEPOSITS OFFERED BY BANK The following products are handled under the operation department. Certificate of Islamic Investment Monthly Mudarabah Certificates Dollar Mudarabah Certificates Meezan Amdan Certificates Meezan Providence Certificate

3.4 CASH DEPARTMENT The cash department is the most important department of the bank. It receives cash from customers and then deposits it into the accounts of the customers and maintained their balances. This is the most important and critical department in a Bank. There are two basic functions performed by the cash department. These are 3.4.1 Receipts An individual who has account in the Bank can deposit money in his account. For deposit of the money the individual has to fill the deposit slip in which the account holder writes his name, Account number, amount of the money both in figures and in words. After filling the deposit slip the Cash amount along with the deposit slip is submitted with the cashier. The cashier collects the cash and counts it and after verification the cashier stamps the deposit slip. One part of the deposit slip is given back to the customer and the other part of the deposit slip remains with the bank for the record purposes

The cashier also record the deposits made by the customers in credit sheets daily. The deposits of all customers of the bank are controlled by mean of ledger account. Every customer has its own ledger account and has separate ledger cards in which his / her total record is kept. Bill collection is also one of the main functions of bank. Cashier has to prepare a list of bills serial number, a copy of which is to be sent to the corresponding organization. 3.4.2 Payments The procedure of clearance of a cheque or payments is as following. First of all the customer presents his cheque to the cashier. The cashier records the account number and the amount, which is to be drawn. Then the cashier check the cheque number in the computer for the verification whether the account holder has such amount in his account which he is demanding or not. If the computer passes the cheque, the Passing officer signs the cheque and sent it to the cash counter then cashier pays the written amount to the customer and then in the end cashier records the amount paid in computer. 3.4.3 In cash department following books are maintained. Scroll book Paying book Cash balance book

SCROLL BOOK When cash is received at the customer it is recorded in the scroll book. PAYING CASH BOOK The cashier makes entry in the paying cashbook when cash is paid. CASH BALANCE BOOK The consolidated figure of receipt and payment of cash is entered in cash balance book. 3.5 CREDIT / FINANCE DEPARTMENT The basis function of the bank is to accept deposit and lend money to the borrowers against a spread so to be able to give some profit to the depositors as well as to earn profit for the bank. The main function of the credit department is to lend money to the customer. MBL lends money in the form of clean advances against promissory notes as well as secured advances against tangible and marketable securities. Islamic Financing for the following: Corporate

SME Personal

Note: These are described in the forth coming chapter products & Services of Meezan Bank.