Work Shop on CBS for Divisional Heads of Karnataka Circle

1. Work Shop on CBS for Divisional Heads of Karnataka Circle

2. Module Content

3. Module Content

4. Module Content • Finacle CBS Solution Over view • DOP CBS architecture and Finacle CBS Benefits • Finacle CBS GL Structure and Fuctionality Review • Finacle CBS Products , definition overview including CIF • Core Services Overview 1 • Inventory Management • Document Management

5. Finacle CBS Banking solution Architecture Office Branch ATM Phone Mobile (SMS) Mobile Internet Browser Channels Mobile network internet Mobile/ LL network India post- WAN India post- WAN Net work Channel integration ATM Switch Finacleebanking IVR Call centre Finacle FIS CBS / PLI Insurance Application Tier Banking Risk based authentication/ antiphishing Core PLI (McCamish ) Underwriting + reinsurance (eBAO ) Core Banking ( Finacle ) AML(sas) ECMS ( IBM Filenet ) Database & infrastructure oracle oracle oracle oracle Infrastructure and storage device

6. Solution Overview • Finacle CBS confirms to core banking , e banking and web based cash management requirements • Customer oriented – CRM module is accessible from all applications & customer data is available across applications • Comprehensive functionality through integrated back and front office • Adherence to regulatory reporting and risk management ensure standardized practice • Finacle CBS ensure assimilation of external components like payment systems, clearing house, central bank and card issue etc

7. Benefits of Finacle CBS Customer centric design • One view of the banking customer • All products and his account balance • Any branch banking / transactions across post office for all customers • Aided by online verification of signature & photo (ECMS) • Instant account transfer between CBS post offices • 24x7 access to banking facilities • eBanking • ATM • Mobile Banking • Western Union Integration will ensure credit of foreign remittances into post office savings account

8. Benefits of Finacle CBS Operational Efficiency • Discrepancy between SOSB and So data will cease to exist – end state • No manual input of vouchers at SBCO • Audit work reduced • Better access control on application based on pre-defined user roles • Transaction based on exception based controls • Hierarchy of who can approve what transaction • Complete flexibility for grouping of sub offices and head offices for reporting • MIS report generation – automated and instant reports

9. Benefits Of Finacle CBS • Regulatory compliance • Anti money laundering rules integrated • Dynamic customer risk profiling based on KYC regulations which is liked to consolidated cutomer account balance • Electronic filing of CTR and STR • Ability to create new scenarios based on new regulatory requirements for AML

10. Module Content

11. Finacle CBS GL structure overview Finacle CBS GL and account linkage • Maintenance of the Sub GL codes with link to GL code branch wise and no restrictions on the no of GL heads and sub heads • Replication of Sub GL to other branch is allowed • Linkage of GL , product & customer • Customer accts & GL accts definition is supported. Each of these accts are linked to GL and Sub head GL Head Scheme Type Scheme code GL sub Head • Transactions are allowed at account level only and integrated up to the GL Sub head or GL for consolidation purpose • End Of Day updates to General Ledger based on transactions performed on accounts • Transfer of accounts between GL sub heads supported • SO /HO / Circle wise GL positions with reports , inquiries , income and expense statements • Value dated reporting at GL /Sub GL level is supported

12. Module Content

13. Product definition overview The perspective Segment Defiinition financials Interest code GL code Fee code Limits interest Dealer code statement Product Definition Exception code Customer Definition attributes Account Definition

14. Customer Information File CIF • The customer information file – CIF- provides a complete and accurate view of the customer. • It is a single source of information about the relation of the customer with indiapost across the various SB products and across various SOL

15. CIF CIF CORE CRM Other external systems

16. CIF Creation Process (1/2)

17. CIF Creation Process (2/2)

18. CIF - Advantages • 1 customer 1 CIF across Indiapost • A customer having a CIF opened in one office becomes a customer of Indiapost and same CIF can be used to open accounts in any PO • Every CIF account opening process goes through a de-dup check which checks on 11 parameters to prevent the Duplicate CIF creation • CIF document status report at the time of account opening captures all the KYC documents obtained for account opening • CIF related documents can be viewed from all the CBS Pos • A customer of internet /mobile banking can see all the related accounts in one screen

19. Demonstartion • A brief view of the CIF Demonstration

20. Module Content

21. Core Services • Track inventory movement between locations and identification of inventory type (external vendor to double lock and to employee location ) • Maintain inventory status – used / unused/ destroyed • Split & merge of inventory items • Authorization of inventory movement between locations • Maintain authorizer details • Management of series of instruments

22. Inventory movement • Operating guidelines: • Inventory indent will be raised by HO for itself and for attached Sos • Inventory received by HO for itself will be in-warded into finacle for further process • For SOs, an identified PA will change his context SOL to identified SOL and move the inventory for that SOL ( At present the Menu HCCS is not given any Supervisor – the HO sup is moving it to external location ) • The PM / supervisor of the context SOL will verify the physical inventory • If the physical inventory and transaction matches , the SO PM will complete the verification process • The in-warded inventory initially will be in double lock location in Finacle • The PM/Supervisor will have to assign the inventory to counter PA through the system based on the actual number of inventory handed over . • Once the inventory is available with the counter PA , it can be issued to the customer

23. ECMS and SVS

24. ECMS & SVS – Process flow All packets will be send to CPC for scanning

25. ECMS & SVS – document management • At CPC • MTS • receives the bundle and open the packet • tally the form received with the list and mark the missing • PA • Checks the KYC , mark the incorrect / missing • Submit to supervisor • Supervisor • Verifies the objections by PA and returns the form back to PA

26. Contd • PA • Updates the status of AOF in Finacle hand over accepted forms to MTS • MTS • Prepares batch of accepted AOFs • Documents are unstapled • Separator sheets are placed with filled side on top • PA • Scans the forms • Check the quality of images and rescan if required • Verified images are uploaded to Data Cap

27. Contd • Data Cap • Maker • Image correction • Page identification • Image extraction • Data correction • Checker • Verification • Batch files created for upload • Data files : export to Filenet repositories with tagged meta data • Images ( signature& photo ) upload to finacle • Document reference upload through batch file to finacle

28. Finacle CBS • Account is completed by referring to physical documents • Supervisor • checks the updates in finacle and accept the same • PA • Hand over the bundles to MTS • MTS • Removes the separator sheets and staple it back

29. ECMS • A cloud based infrastructure that captures and stores all the scanned documents obtained during account opening . • ECMS is interfaced to Finacle CBS for dynamic access of scanned documents including signature and photo of the customer • ECMS process is done at CPC • SVS • Integral part of Finacle CBS • Facilitates upload and viewing of photographs , signatures and documents of the customers • For post offices view only facility

30. Demonstration

31. Topics

32. CPC • Activities in CPC • Existing CIF modification / maintenance • Welcome kit based account opening • Existing account maintenance /modifications • Cheque book request capturing • Due notice generation • Signature and photograph viewing • Activities related to ebanking • User login creation for internet banking access • Pin mailer generation , printing and mailing them to customer • Activities based on the cutomer requests through internet /mobile banking • Activities related to ECMS • Physical document receipt, segregation • Scanning • Uploading to the content server • Revert the physical documents back to originating office for safe keeping

33. Office accounts • Type of Office accounts • Office Account Basic (OAB) • These are simple internal accounts . These accounts help in managing the General Ledger • Accounts like Cash, Asset account , liability account , contingent accounts, interest , commission, exchange , discount and charges are opened under this scheme type • Office Account Pointing • Pointing accounts are used when transactions are created for short period with a reference and they will have to be reversed. Ex : sundry creditors, suspense payments etc • Office System pointing • The users are not allowed to do any transactions • The transactions are generated and verified by the system on invoking or at events . Ex For interest calculation system calculates and creates a transaction and posts it

34. Office Accounts • Inter SOL accounts • In a centralised database where transaction pertaining to accounts of more than one SOL is involved , the transactions are not routed throgh Head Office accounting . Whenever a transaction takes place between two accounts of different SOLs • Office Accounts to be used by Counter PA and Supervisor and Process to be followed by them.docx

35. Topics

36. Customer accounts – SB • Accounts can be opened as per the DoP rule • Nomination can be captured as part of account opening process • Account number is system generated – 10 digits • Maker – checker process is applicable • Modification can be done before or after after verification by due process • Cheque book request can be captured through internet banking channel or physical submission of request • Standing instruction can be set up for credit / debit to / from the account – fully automated process • Feel good factor – welcome kit based account opening

37. Savings bank – Menu ptions

38. Term Deposit • Time deposit can be opened for different type of customers- ----- • The term deposit module covers the entire life cycle of an account • Post office can define the different interest calculation method while defining the product – is it at data centre level • Finacle facilitates passbook certificate printing. Reprinting and duplicate printing • Upon maturity TD can be automatically renewed for the period it is opened • Closure can be preclosure or on maturity • Lein if any should be revoked

39. Term deposit – key terminology

40. Term Deposit – Operations

41. Recurring Deposit – Account Operation In RD , the existing half withdrawal will be known as loan against RD . A separate account viz., RD loan account will be opened

42. Value addition in CBS – RD/TD • RD account instalments can be paid through internet banking/ agents • Agents can use agent portal to improvise the collection process • Super agent facility to support agents from a PO location for RD installment collections • Various process in account operation is fully automated • Interest application process run is done at DC • A customer for any of this service can do the transaction from any CBS PO

43. NSC • Certificate is issued on account opening • Each certificate issued is considered as an account in CBS. • An account number is allotted for each certificate issued • Conversion of the account from single to joint and vice versa is allowed. • Provision is made for marking lien and to freeze at the time of pledging or on court order • In general interest is paid only on maturity • When bank advance loan against NSC pledged, PO will only mark a lien on the account or freeze it . • In case of non-availability of the certificate inventory in the stock , the counter PA should issue a NC(4) by noting the NC 4 number in the account opening form • A report can be generated for NC 4 issued accounts

44. NSC – Process flow In case multiple certificates are issued to a single customer , finacle CBS generates a unique number for each certificate with a common registration number

45. KVP • KVP opening is discontinued 1-1-2011. However all existing account can be migrated to CBS. Following operations can be performed for the accounts transferred to CBS • Modification of account details – nominations • Premature closure as per applicable interest rate • Closure on maturity • Transfer of account from one post office to another

46. KVP - Process A memo pad feature help to follow up for any missing document o any pending queries from audit or any other department History can be maintained so that duplicates can be prevented across CBS offices

47. SCSS - PROCESS

48. MIS

49. MIS • CIF ID facilitates to check the MIS limits for the customer • Batch job for transfer of interest – automatic during end of day/month end • Distinguish accounts for tax deduction at source • ECS enablement help to transfer monthly interest to accounts held in other banks

50. PPF