G.P. Rajbahak & Co.

Chartered Accountants Check List Operations Bank of Kathmandu Mark '' Operation circulars and Training (Internal Memo Dated 03.05.07) 1. Minutes of operations level meeting held monthly at branch with agenda and minutes of the same forwarded to COO through MSR. 2. Internal Audit Dept. report ensuring that the same has been followed. Account Opening A/C (Country Operation Manual 001) 1. Application form for a/c opening has been properly filled up. 2. As per KYC circular issued by NRB, adequate documents required to open an account has been obtained or not. 3. In case of Foreign Currency (FCy) account, check whether the procedure and documents required as per NRB circular No. 410 & 411 has been complied or not. 4. Verify specimen card with application form. In case where 'Stamp' has to be made compulsory, is made or not. 5. If the account is operated by the agent of the customer, obtain a power of attorney in written forms, indicating the mode of account operation. Also, obtain the specimen signature of the agent and proper identification of the agent. 6. Application for opening Time/Fixed Deposit from the customer has been received. 7. Check date, amount in words and figure of application is correct or not. Verify the customers signature. Cheque signed by the authorized personnel or not. Debit customers saving / Current Account and credit Time/Fixed Deposit Account. 8. Obtain acknowledgement signature of the customer on the copy of the receipt while delivering the FD receipt. File copy of receipt in Checked by: __________ 1 Yes No W.P Ref. OT __ Repor t

OT __

Yes

No

W.P Ref. ACO __

Repo rt

ACO __

ACO __

ACO __

ACO __

ACO __

ACO __

ACO __

Verified By: ____________

G.P. Rajbahak & Co. Chartered Accountants FD receipt.

Checked by: __________

Verified By: ____________

G.P. Rajbahak & Co. Chartered Accountants

Account Closing (Country Operation Manual 001) 1. Application form prepared for a/c closing filled up with all particulars needed. 2. Signature of the customer on the application form has been verified. 3. As per KYC circular issued by NRB, adequate documents required has been obtained. 4. After closure of a/c, the specimen card and the a/c closing form has been defaced or marked 'Cancelled'. 5. A/c closing charges has been charged as per standard tariff of charges. 6. When Time/Fixed Deposit account is closed before maturity date (FD Break) following procedure to be followed. 7. Receive the original receipt. Get the signature of the customer on the back side of receipt. 8. Close F/D account for interest application and Tax deduction. 9. Credit customers Current /Saving Account with manually calculate interest rate after deducting Tax. Stop Payment (Country Operation Manual 001) 1. Received the written request from the customer, clearly mentioning the cheque number, amount, date, payees name, etc and the reason for stop payment. 2. Customers signature verified. 3. The stop has been placed on an appropriate cheque. 4. Input in the system marking the specific cheque as Stopped 5. File the request/letter. Checked by: __________ 3

Yes

No

W.P Ref. ACC __

Repo rt

ACC __

ACC __

ACC __

ACC __

ACC __

Yes

No

W.P Ref. SP __ SP __ SP __ SP __ SP __

Repo rt

Verified By: ____________

G.P. Rajbahak & Co. Chartered Accountants Safe Deposit Locker A/C (Country Operation Manual 001) 1. Does the applicant have an account with the bank? 2. Application form (Specimen # AC 022) filled in and signed by the customer/s. 3. Identification (citizenship certificate/passport) has been submitted by the applicant. 4. Two photographs are submitted by applicant? 5. Security deposit and Locker charges are taken depending on the locker size. Security deposit: between Rs.25,000.00 to 50,000 Annual charges: Rs.1,000.00 to Rs.2,500.00 6. Nominee Form (Specimen # DE 023A) filled up and signed by the applicant if he/she wants to appoint nominee. 7. Debit authorization (Specimen # AC 022) from the lessee to recover Security Deposit and the annual rental Charge from his/her account obtained or not. 8. Locker Rental Identity Card has been completely filled up with photograph of account holder and specimen signature on it. Standing Instruction (Country Operation Manual 001& SO-012) 1. Request letter from customer received. 2. Signature of the customer verified. 3. Instruction of the customer has been followed. 4. Instruction of the customer has been loaded into the system after obtaining necessary charges. 5. Instruction on due date has been processed. Yes No Yes No W.P Ref. SDL __ SDL __ SDL __ Repo rt

SDL __

SDL __

SDL __ W.P Ref. STI __ STI __ STI __ STI __ STI __ Repo rt

Checked by: __________

Verified By: ____________

G.P. Rajbahak & Co. Chartered Accountants Dormant A/C (Country Operation Circular GO/015) 1. Periodically list of dormant accounts generated by CPU and corresponding details provided to respective branches. Also, the details of report submitted by the branch to CPU. 2. List of dormant accounts over 10 years but without any claim submitted to NRB. 3. A public notice issued by CPU on national daily newspaper a month after completion of 10 years as dormant, if still no claim is received, details of such account being transferred to an account specified by NRB. 4. Is there practice of approving the reactivation process only if the applicant is personally present? 5. Written request in person detailing reason for the account being left non-operative along with a fresh identification documents. 6. Approval for the same taken or not? 7. Records of reactivated accounts maintained or not? (For control procedure only, because the system does not show the details of account reactivated) Return Cheque (Country Operation Manual 002 'Cash & Teller') 1. Cheque return slip/ letter citing the reason for return to the customer has been issued. 2. Photocopy of the cheque to be returned has been kept. 3. Authorized signatory of BOK to sign the cheque return slip/ letter and bank stamp has been affixed or not. 4. If the cheque is to be returned, applicable cheque return charge has been obtained. Yes No Yes No W.P Ref. DA __ Repo rt

DA __

DA __

DA __

DA __

DA __

DA __

W.P Ref. RC__

Repo rt

RC__

RC__

RC__

Checked by: __________

Verified By: ____________

G.P. Rajbahak & Co. Chartered Accountants Requisition for Cheque Book (Country Operation Circular SO/005) 1. Check book, except for the first time, has been issued only against valid requisition slip. 2. Check book requisition slip has been properly filled up and the signature of account holder verified. 3. An acknowledgement has been obtained upon receipt of the cheque book. This has also been verified against the face of the requisition and the specimen signature. 4. Procedures to be followed in case of requisition authorizing another person to collect the cheque book. ~ The specimen signature of the authorized person has been attested. ~ The signature of the account holder has been verified against the specimen signature. ~ Identity (copy of the citizenship certificate, ID card etc.) of the person authorized to collect the cheque book has been obtained/seen. ~ An acknowledgement signature of the recipient has been obtained and the same has been verified against the attested signature on face of the requisition. 5. Cheque book issue register has been properly maintained. Yes No W.P Ref. RCB __ Repo rt

RCB __

RCB __

RCB __

RCB __

Checked by: __________

Verified By: ____________

G.P. Rajbahak & Co. Chartered Accountants

Teller Transaction (Country Operation Circular SO/005) Withdrawal against Cheque 1. Payment against post dated cheque and payment against stale cheque/s i.e. over 6 months has not been made. 2. Amount in figures and words has been verified. 3. Deletion and alteration has been authenticated by full signatures of account holder or not. 4. The cheque has been signed Payee/Beneficiary on the backside. by the

Yes

No

W.P Ref. TT __ TT __ TT __ TT __ TT __

Repo rt

5. Signature / Stamp of account holder obtained and subsequently verified. (Also confirm through system) 6. In case if payment has to be made above the limit (i.e. NRs. 200,000 for each teller), approval from Head Teller has been obtained. (BOK Country Operation Manual 002) 7. Cash payment of cheque > NPR 500,000 has been confirmed with the drawer (in case where drawer could be contacted). Withdrawal against Withdrawal Slip (WS) 1. Withdrawal against WS has not been allowed to non-personal accounts. 2. Third person authorization has been clearly mentioned / provided in WS in case where the a/c holder is personally not present due to some reason. 3. The WS has been filled up by the account holder himself/herself. 4. The identity of the person collecting the payment (ID card or any other identity) has been obtained. Deposit Slip 1. Deposit slip has been fulfilled with all particulars needed including account number, depositors name, account holders name, denomination e.t.c. 2. In case where more than NRs. 1,000,000 has been deposited in any a/c the documents disclosing sources of fund has been obtained. Checked by: __________ 7

TT __

TT __

TT __

TT __

TT __ TT __

TT __ TT __

Verified By: ____________

G.P. Rajbahak & Co. Chartered Accountants (KYC circular).

Balance Confirmation Certificate (Country Operation Circular SO/014) 1. Customer request has been received and the signature has been verified. 2. Reference number on the balance certificate has been assigned as per standard format. 3. Reference number has been assigned in chronological order and continued for one fiscal year (Shrawan to Ashad). 4. CPU/CCU has reconfirmed details of the BCC that has been issued by the branch. 5. CPU/CCU has prepared list of certificates issued in monthly basis and the charges on the same has been verified. (Other than specified in SO/014) 6. In case where account-holder has authorized third person to receive the BCC, signature of the authorized person has been obtained on application form and the same has been verified on Copy of Balance Certificate or Register.

Ye s

No

W.P Ref. BC __

Repo rt

BC __

BC __

BC __

BC __

BC __

Key Management (Country Operation Circular 002 Ye 'Cash & Teller') s 1. Any change in the vault custodians/key holders has been reported to his/her supervisors without loss of time. 2. All keys relating to the vault has been held by designated staffs comprising of two different panels in all branches/offices of BOK and same has been recorded in Vault Key Register. 3. The Vault custodians/key holders has signed in the cash record book, currency-wise, while taking the cash into and out from vault. None of the staff or external members, other than the ones authorized, was allowed to enter the vault. Checked by: __________ 8

No

W.P Ref. KM __

Repo rt

KM __

KM __

Verified By: ____________

G.P. Rajbahak & Co. Chartered Accountants Country Operation Circular SO 021 'Key Management 4. No staffs other than those listed in the panel have been authorized to hold vault/safe keys. 5. Key holders have signed on the key register for each key being held by him/her. No keys have been handed over to the respective panelist without having got the signature of the panelist taking over, along with the signature of the staff handing over, the key on the respective key register. On Demand Statement (Country Operation Circular 002 'Cash & Teller') 1. Good For Payment (Country Operation Circular 002 Ye 'Cash & Teller') s 2. Received request letter and cheque to be marked Good for Payment. The request letter and the cheque have been signed by the authorized account operator. 3. Signatures in the letter and the cheque have been verified. 4. The cheque requested for Good for Payment is crossed (A/c Payee or &Co). No bearer cheque has been endorsed Good for Payment. 5. Stamp Good for Payment made on the face / backside of the cheque and has been signed by at least two authorized signatories of the bank. One of the signatories is of the head teller. 6. Photocopy of the cheque has been retained. And the request letter has been attached along with the necessary voucher and file. Other than specified in COC-002 'Cash & Teller' 7. Separate register for Stop payment has been maintained and application letters are filed properly. Cash Yes Ye s KM __

No

W.P Ref. GFP__ W.P Ref. GFP__ GFP__ GFP__

Repo rt

No

Repo rt

GFP__

GFP__

GFP__

No

W.P Ref.

Repo rt

Checked by: __________

Verified By: ____________

G.P. Rajbahak & Co. Chartered Accountants 1. Physical verification of cash and other cash equivalent documents kept in vault has been carried out and found correct. 2. The vault cash book, vault log book and other necessary documents such as vault key register are found correct. 3. In Vault cash book serial number control and dual signature control are found correct 4. Initial signature of staff has been made, in case of overwritten in vault cash book. 5. Insurance coverage is proper regarding vault cash, cash in transit and cash in counters. 6. Cash allocated for each individual teller is within limit i.e. NRs. 1 mio. (Holding limit) and NRs. 0.2 mio. (Payment limit) 7. The vault cash has been verified with treasury limit and found correct. 8. The vault in cash is within treasury limit, and in days where they are in excess amount has been brought down in following 2 working days. CV__

CV__

CV__

CV__

CV__ CV__ CV__

Remittance
TC/FCY Sales (Against Passport) 1. Verify whether application for TC/FCY cash sales filled up properly 2. As per NRB Circular No. 413 dated 2063.12.11, the limit for foreign exchange facility provided against passport is $2000. 3. Documents such as confirmed air ticket, photocopies of flight coupon of the confirmed air ticket showing third country destination and photocopies of the passport containing name, address and photograph has been kept on a file. 4. The amount of foreign currency provided has been protectographed in the jacket of the air ticket and signed by authorized signatory and stamped. Checked by: __________ 10 Yes No W.P Ref. TCP__ Repo rt

TCP__

TCP__

TCP__

Verified By: ____________

G.P. Rajbahak & Co. Chartered Accountants 5. Facility in excess of $2000 has been backed up by NRB permit. 6. Commission has been charged as per Standard Tariff of Charges. 7. In case where customer has asked to debit his account for facility utilized, the signature of the applicant verified has been verified. 8. In case of cash payment (NPR) against facility utilized, denomination has been mentioned. 9. In case where applicant has authorized third person to receive the TC/Cash, signature of the authorized person has been obtained on application form. And the same has been verified while issuing TC/Cash. TCP__ TCP__ TCP__ TCP__

TCP__

TC/FCY Cash Purchase 1. As per NRB Circular No. 437 Foreign Exchange Encashment Receipt (FEER) note has to be filled in clearly and legibly without leaving particular in any column. The same has been followed. 2. Commission has been charged as per STC for charges. Draft Sales (INR) 1. For facility of more than INR 100,000 documents revealing the exchange facility has been obtained such as Proforma invoice, commercial invoice. Follow up for custom clearance certificate has been made. 2. Commission has been charged as per STC. 3. Where customer has asked to debit his account for facility utilized, the signature of the applicant has been verified. 4. In case where applicant has authorized third person to receive the draft copy, signature of the authorized person has been obtained on or with application form. And the same has been verified while issuing draft.

Yes

No

W.P Ref. TCS__ TCS__

Repo rt

Yes

No

W.P Ref. DSI __

Repo rt

DSI __ DSI __

DSI __

Checked by: __________

11

Verified By: ____________

G.P. Rajbahak & Co. Chartered Accountants 5. In case of cash payment (NPR) against facility utilized, denomination has been mentioned. DSI __

Checked by: __________

12

Verified By: ____________