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Bangladesh Institute of Bank Management

Mirpur, Dhaka.

Cash Management
Compiled by:
D.R. Karmaker
Faculty Member
Cash is the most liquid Current Asset of Banks Balance Sheet and, as such, it
demands special attention for Efficient Management. Cash Department plays a
paramount role in creating good perception among the customers about the services of
a bank. Cash-in-charge, ideally a senior level officer with direct experience in cash
management shall be responsible in performing efficient cash management. Efficient
Cash Management constitutes the following roles.

Receipt of Cash:
Before receiving cash from depositors in Pay-in-Slip/Credit Voucher the
concerned cash official(s) shall:
a. Verify/check the (a) Title of Account, (b) A/C Number, (c) Amount in
Words and Figures, (d) Date, etc. written on Pay-in-Slip/Credit Vouchers
with the records of computer program and shall satisfy on their correctness
and genuineness.
b. Carefully check and count the Currency Notes.
c. Write down denomination.
d. Affix Cash Received stamp.
e. Make entry of particulars of the Cash Received.
f. Verify entries/Particulars of Pay-in-Slip/Credit Voucher with those of the
Cash Receiving Register.
g. Keep Cash in the Drawer of Cash Counter under lock and Key (within
counter limit) during transaction hours.


Payment of Cash:
While Paying Cash against debit instruments namely cheques, Demand Drafts
(DD), Pay Order (PO), Pay Slip (PS), SDR, FDR, etc, and also against other
debit instruments issued under scheme deposits of the Branch as well as Cash
Debit Vouchers, the following formalities have to observed:
Verify Genuineness & Authenticity of the instrument, make posting, passing
& cancellation of the Cheques and, thereafter, count relevant cash and note
down denominations thereagainst on reverse/back side of respective
instruments/ vouchers.

Obtain 2nd signature of payee/recipient on the back of the instruments,

affixing stamp and cancellation of instruments.
Enter particulars of Instruments/Cheque in Cash Payment Register in serial
order and write down that serial number in a red circle to be made on the face
of the instruments.
And finally after completion of all above formalities, the cash official, upon
satisfaction, shall pay/hand over cash against the instrument/cheque to the
However, paying cash official(s) shall hold all paid debit instrument(s) until
cash is closed and handed over to Cash-in-Charge at the close of business.

Balancing of Cash Receiving Register:

After receipt of total cash during the day, the Cash Receiving Official shall (i)
aggregate the amount after the last entry in the Cash Receiving Register, (ii)
write down the total amount in words and figures under the summation and
ensure that it is okay and the figure agrees with the computer generated
supplementary figure.


Balancing of Cash Payment Register:

Paying Cashier shall accomplish the following formalities:
Make date-wise entry of all payment Vouchers in Cash Payment Register in
serial order.
Make sure that total amount of such payments of the day agrees with the total
amount shown in the parallel computer generated supplementary.
Write down the total amount of cash paid during the day both in words and
figures in Cash Payment Register and authenticate the same by full


Writing and Checking of Cash Balance Book:

After Balancing of (I) Cash Receiving Register and (II) Cash Payment Register
by the respective Cash Officials, Cash In-Charge shall prepare and sign the Cash
Balance Book and shall submit the same to the Deposit In-charge/Manager who,
upon satisfaction about its accuracy and genuineness shall authenticate the same
by his/her countersignature thereon.


Checking/Closing of Cash and Writing of Cash Position Memo:


At the end of days cash transaction, Cash In-Charge shall count, sort and
balance the remaining cash (after receipt & payment) and shall prepare and sign
the Cash Position Memo. However, Deposit In-Charge/Manager shall check and
confirm that the figures mentioned in the Cash Position Memo agree with the
total figures of (I) Cash Payment Register, (II) Cash Receiving Register and (III)
Daily Affairs (cash in hand figure) and, upon satisfaction, shall authenticate the
Cash Position Memo by his full signature/ countersignature.

Safe Custody of Cash (after transaction) over night:

Cash balance of the counter at the end of a day together with Cash in Safe (If
any) shall be preserved in the Fire Proof Iron Safe of Branchs Vault for safecustody until next reopening of the Vault. But before storing cash in the Iron safe,
the Custodian shall additionally ensure that entire cash i.e. Closing Balance of
the day as per Cash Position Book (Balance Cash of Cash Counter and remaining
Cash in Iron Safe) are accurate and correct.


Vault Maintenance:
Branch has to ensure the vault/cash in safe limit as set by Head Office time to
time. Cash in excess of vault has to be deposited immediately with BB/Sonali
Bank or designated cash feeding branch.
Cash safe/vault Register:
The cash safe/vault register is a record indicating the contents of cash in the
safe/vault. All deposits and withdrawals from the cash safe should be recorded in
this register denomination-wise under the signature of the manager and the cash
officer. The balance of this register at the close of the days business will
represent the total cash holding of the branch. The balances of prize bonds,
sanchaya patras and other cash items must agree with the respective balances and
the related registers of the different cash item stock issue register.


Custody of safe Register:

Cash safe register should be kept in a steel almirah under lock and key in the
personal custody of the manager, the keys of which must always remain
exclusively with the manager.


Cash-in-safe, cash-on-counter and cash-in-Transit Limit:

Branch must handle cash within Cash-in-Safe, Cash-on-Counter and Cash-inTransit Limit duly approved by Head Office. Excess cash over the approved limit
shall not be held in the Branch at any time either on Counter or in Iron Safe.
However, the Cash In-charge, under due record & acknowledgment in the
relevant register, shall immediately move the Excess Cash of the counter to the
Strong Room during transaction hours.

11. Soiled / Mutilated Notes:

Branch, with due recording in a register shall always keep soiled and mutilated
notes separated from the notes for circulation and shall arrange change of the
same at necessary interval from Bangladesh Bank/ Sonali Bank Limited/Main
Branch of the Bank to avoid irrational accumulation.
Mutilated notes received form the public should not be kept in the vault for
unreasonable time. As per instruction of Bangladesh bank the concerned branch
should deposit the mutilated notes directly to the Bangladesh Bank or through
their local office. During the period of examining the mutilated notes as per
instruction of B.B. the concerned branch/local office representative will remain
12. Cash Remittance:
(a) Indenting branch, when required, shall secretly send their cash indent to the
feeding branch well in advance through special messenger. Such indent
shall be jointly signed by cash-in-charge and joint custodian (GB) and
countersigned by Head of the branch. The feeding branch, on receipt of
such indent, shall verify its bonfide and nominate cash official(s)

accompanied by adequate armed security, guard; arrange transport and shall

remit requisite amount of cash to the indenting branch.
(b) Branch while exceeding its approved Cash-in-safe limit, shall confidentially
request the concerned Feeding Branch in writing to collect the Excess Cash.
On receipt of such request from Remitting Branch, Authorized Feeding
Branch shall send/depute Cash Official(s) and Armed Security Guards along
with a Letter of Authority to collect their excess cash. Branch Manager /
Cash-in-Charge of Feeding Branch with their P.A number shall attest
signature(s) of the Concerned Cash Carrying Official(s) and Armed Security
Guards on the aforesaid authorization letter for the purpose of
Remitting Branch, upon satisfaction about the genuineness of the aforesaid
Letter of Authority with identification of Cash Carrying Officials of
Feeding Branch, shall hand over their excess cash together with an IBDA to
the aforesaid Cash Carrying Officials and Armed Security Guard/Supervisor
of Feeding Branch after obtaining their signatures on Cash Remittance
Register for onward delivery of the same to the Feeding Branch.
13. Keys of safes and key Register:
The keys of the cash safe will be retained by the manager and the cash officer. In
absence of the manager from the Head Quarters, the officer next in the rank to
the manager or senior most authorized officer stationed in the HQ will hold the
managers keys after making necessary entries in the key register.
The duplicate keys of the safe and the strong room are to be deposited for safe
custody with the local Branch of the authorized bank. These keys should not be
withdrawn from the Bank without permission from the competent authority and
on a request made jointly by the manager and the cash officer.