Knowledge sharing

Cash management

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CASH HOLDING LIMIT AND CASH
OPERATION

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 Collection of Cash Deposit at the Table
Banking Business Officer (at the table)
Collects the cash from the customer above 15 bundles;
Counts the cash against each denomination in the bundles
 Ascertains the correctness thereof by comparing it with
that of the voucher filled in;
Posts the cash to the customer’s account using her/his
user ID, prints a deal slip, affixes a stamp to the voucher/s
and signs on it;
Affixes a stamp and signs on the wrapped Birr notes to
confirm the correctness of amount of cash in each bundle
(two signatures are required on wrapped notes of Birr fifty
and above, and one signature on wrapped notes of Birr five
and ten);
Balances the cash according to its denominations and
hands it over to the Senior Banking Operation Officer,
and transfer the cash through the system; and
Handles the duties and responsibilities of the Senior 3
 Balancing and Closing Cash Activities

At Lunch Time/Half Day Balancing

Banking Business Officer

 Balances the overall physical cash against the system balance;

 Hands over all FCY and LCY cash in except loose LCY to the Senior Banking
Operation Officer and makes a ‘till transfer’ through the system;

 Hands over to the Manager Branch Operation/Senior Banking Operation

Officer the remaining vouchers in her or his possession;

Manager Branch Operation/Senior Banking Operation Officer

 Accepts the cash surrendered by the Banking Business Officer;

 Ascertains the correctness of the denominations of total cash and acknowledges

the receipt of the cash by authorizing ‘till transfer’ on system; and

 Checks cash balance of the Banking Business Officer does not exceed the limit
in the system. (i.e. the Banking Business Officer shall not keep a till balance
more than the loose amount i.e. 20,000)
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The Day-End Closing:
Banking Business Officer
Amalgamates the cash in her/his hands in bundles and loose
notes, sorting it by its denominations, and balances the
overall cash as follows: (Refer Form No. BOABBF027)
Transfers all big denomination notes including loose notes (50
and 100 notes) to the Manager Branch Operation/Senior
Banking Operation Officer in two steps; first the total
amount, which will be transferred to the table, and second
loose notes;
Surrenders the remaining deposit and payment vouchers in
her or his hands to the Manager Branch Operation/Senior
Banking Operation Officer.
Beginning balance + cash received from customers + cash
received from the vault (the Senior Banking Operation
Officer) - cash paid to the customers – cash sent to the vault
=Cash at hand to be surrendered

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 Cash Difference (Shortage/Excess) Handling
Senior Banking Operation Officer
 Reports a cash difference of below Birr 100.00 separately to Branch Manager by co-
signing with Manager Branch Operation monthly (Refer Form No. BOABBF031);
 Reports a cash difference from Birr 100.00 up to birr 10,000 should be reported
separately to Branch Manager and by copying Manager –District operation,
immediately (Refer Form No. BOABBF031); and
 Reports a cash difference of Birr 10,000.00 and above should be reported separately
to District Manager by co-signing with Branch Manager immediately.

Manager Branch Operation

 Arranges the whole cash including vault cash to be checked and for a proper
investigation to be done thereon;
 Takes appropriate action to balance when the cash difference occurs; and

 Sends monthly cash-discrepancy (shortage or excess) report to District Manager

regardless of the amount of money involved;
 Ensures that all excess cash difference which is not collected by customers should be
transfer to cash surplus account within one month after the difference occurs
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Re Fund Of Excess Cash
Manager Branch Operation
Receives the application letter from claimant customer;
 Ascertains the cash excess has been registered by the branch;
 Ascertains cash excess has to be refunded to rightful claimant by
reviewing all documents;
 Proposes and forwards cash excess refund to the rightful claimant
to Manager Branch Business for approval
Manager Branch Business
Receives and reviews the proposed cash excess refund;
 Approves jointly with Manager Branch Operation up to Birr
50,000;
 Proposes cash excess refund to the rightful claimant with joint
approval of Branch Manager for birr50,000 and above; and
 Reports monthly excess cash refunded to Manager District
regardless of the amount of money involved.
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 Forged (Counterfeit) Notes
Senior Banking Operation Officer / Banking Business Officer

Identifies counterfeit notes from genuine notes at a time of collecting cash

from customer
 Makes Mark as “COUNTERFIET” in front of the presenter and report to
Manager Branch Operation
 Receives the counterfeit notes and interview the customer retain address of
customer; and
 Reports to the nearest police station immediately by copy to Treasury
department and District Business Support division.

Good Coin Handling

Banking Operation Officer assigned on the cash table

 Counts coins using a coin-counting machine, if any with help of Cash Office
Attendant;
Checks coins are arranged on a tray according to their denomination if the
branch have not coin counting machine before putting in a bag; and
Forwards counted coin to Senior Banking Operation Officer according to
denominations
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 Forged (Counterfeit) Notes

Manager Branch Operation/Senior Banking

Operation Officer
Receives and checks the coin from Banking
Operation Officer;
Puts it in a coin bag that is full should either be sealed
or tied with a string and a tag attached at end of it,
showing denominations, amount of money, date on
which it was sealed and initials of persons by whom it
was counted and verified as well as the branch name;
and
Ascertains and put the coin bags separately, according
to the types of coins they contain in the vault, or in the
cash held for the National Bank of Ethiopia (NBE).

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Deteriorated Notes and Depilated Coin Handling
Banking Business Officer
Identifies deteriorated notes and depilated coin which is collected from the
customer as per the NBE guideline;
Accepts and determine the equivalent mutilated or damaged notes and coins as
per the NBE guideline;
Gives equivalent good cash or credit to his/her account as the case may be; and
Forwards mutilated or damaged notes and coins to the Manager Branch
Operation/Senior Banking Operation Officer.
Manager Branch Operation/Senior Banking Operation Officer
Receives and checks the mutilated or damaged notes and coins from Banking
Business Officers;
Keeps the mutilated or damaged notes and coins until attain full bricks or full
bag coins and affixed to each bundle, to both sides thereof, with a large rubber
stamp marked “DETERIORATED”; and not used for circulation; and
Forwards full bricks note or bag coins to issue centre during cash
consignment.
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 Exchange Of Birr Notes And Coins On Sorting Table Operations

Banking Business Officer: Receives from the Senior Banking

Operation Officer fixed amount of physical cash in different
denominations and through the system;
Counts the cash she/he is provided with in front of the Manager Branch
Operation/Senior Banking Operation Officer
 If additional amount of cash is needed, the Manager Branch
Operation/Senior Banking Operation Officer shall provide cash against
system;
Accepts by authorizing a Till transfer on the system as acknowledgment of
receipt of cash
Exchanges big Birr notes received from the public into Birr notes of smaller
denominations and vice versa and posts on the system
 Requests/receives/ for the exchange of coins in bags with different
denominations from the Manager Branch Operation/Senior Banking
Operation Officer and authorizes till transfer for acceptance similar to birr
notes exchange;
Checks/ examines the tag on coin bags and the lead used for packing coin and
counts the coins with a coin-counting machine/manually/ to ascertain the
correctness of amount; and
 Balances the coins during lunchtime and at the end of day closing and hands
over to the Manager Branch Operation/Senior Banking Operation11Officer
the equivalent in cash notes.
 Cash Handling At Sorting Table
Manager Branch Operation/Senior Banking
Operation Officer
Keeps detail record for recording cash denominations
received from the Banking Business Officer
Ensure all birr notes are sorted, counted and wrapped at
table by the Banking Business Officer and Cash Office
attendant
Checks the wrap Birr notes are impressed by a cash
stamp and signed by both the counter and the verifier
Ensures that the total of the cash surrendered by
Banking Business Officer at a table recorded in the ‘Till
to Till
 Accepts the cash, after balancing, from Banking
Business Officer at a table in charge

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 Cash Consolidation, Lodgement, and Vault Cash
Handing And Taking Over

Cash Consolidation
Manager Branch Operation/Senior Banking Operation
Officer
Verifies all Birr 50 and Birr 100 notes will have to be carefully
counted either by her/him or by the Banking Business
Officer;
 Checks that the Bundles properly wrapped, sealed with
branch name and date and bear the signatures of the counter
and the verifier;
 Ensures each brick contains 10 bundles, and each bundle
have 100 Birr notes;
Consolidates all cash surrendered to her/him, including any
balance of cash, which is kept in the cash room, with the help
of Banking Business Officer at the table; and
Prepares the cashbook and balances the overall cash in her or
his hands with that of the ‘till transaction today’ and
denomination by till.
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 Cash Lodgement

Manager Branch Operation/Senior Banking Operation Officer

Prepares the counted and verified cash with the help of Banking
Business Officer assigned at table;
Lodges cash during operation received from the customer, or cash
from consignment to the Vault by writing amount and denomination on
the bound book and make dual signature for 50- and 100-birr notes;
 Balances and records the daily cash transaction in cashbook register
according to the denominations at the day end closing; and
Transfers the cash through ‘Till to Vault’ menu

Manager Branch Operation

Regularly checks the cash amount hold at the table and lodge the
cash to vault
Verifies that each brick contains 10 bundles before transferring the
cash to the vault
Verifies the correctness of cashbook filled out by the Senior Banking
Operation Officer against ‘Teller
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 ATM Cash Handling and Operation Process

ATM Machine within branch premises

Manager Branch Operation
Monitors the ATM cash status and ensures timely cash lodgement
Checks and monitors the ATM cash balance from the ATM cash Account
and offline standing transaction through the system designated for the
purpose, to replenish before cassette reaches minimum amount
Ensure enough cash is loaded to ATMs before closing the branch.
 Arranges and schedules cash reloading in weekends and holidays;
Ensures cash replenishments on holidays, weekends and working hours;
Balances the Cash in the ATMs before reloading
Opens the ATM door jointly with the Senior Banking Operation
Officer and loads pre-counted cash on each cassette type
Ensures whether all the keys are locked before leaving the area
Ensures that the transaction shall be posted on the next working day
those cash lodgements made on weekends or holidays; and Authorizes
the posting for ATM cash lodgement
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 ATM Machine out of branch premises
Branch Manager
Assigns Manager Branch Operation/Senior Banking Operation
Officer and Banking Operation Officer to lodge cash in ATM which
found out of branch premises;
Hand over the ATM vault and door key to Banking Operation Officer
against signature on key register book;
Ensure that combination code is properly changed and deliver in sealed
envelope to District Manager timely by Manager Branch
Operation/Senior Banking Operation Officer;
Ensure always the ATM cash lodgement out of branch premises should
be escorted by bank guard.
Manager Branch Operation
Ensure enough cash is loaded to ATMs before closing the branch.
Arranges and schedules cash reloading in weekends and holidays;
Ensures cash replenishments on holidays, weekends and working hours;
Authorizes the posting for ATM cash lodgement.
 Senior Banking Operation Officer
 Ensure cash in ATM are balance and change the existing combination code in consultation with
District Operation manager and keep it confidentially;
 Forwards the combination code confidentially by sealed envelope to Manager District;

 Assesses ATM daily cash transaction to set the optimal cash balance in different periods such as
holidays, consecutive business day closing, slack and pick periods,
 Monitors the ATM cash status and ensures timely cash lodgement to those ATMs out of branch
premises;
Checks and monitors the ATM cash balance from the ATM cash account to replenish before cassette
reaches minimum amount;
Reloads cash in weekends and holidays that arranged by Manager Branch Operation;

 Balances the Cash in the ATMs before reloading;

 Checks the status of rejected cassette/purge bin and take appropriate action;

 Opens the ATM door jointly with the assigned Banking Operation Officer and loads pre-counted
cash on each cassette type, in accordance with a breakdown thereof in denominations and inputs
correct loading for each cassette in the ATM monitor;
 Ensures whether all the keys are locked before leaving the area;

Ensures that the transaction shall be posted on the next working day those cash lodgements made
on weekends or holidays;
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 ATM Cash Excess
ATM cash excess may occur due to the following when customer’s account debited but ATM
fails to disburse cash to cardholder.
 When cardholder’s account affected but cash not disbursed;

Cash is disbursed but not collected;

 Wrong cassette loading, insertion and calibration; and

 Errors in posting.

Senior Banking Operation officer

 Checks that the physical cash in ATM against with General Ledger; and

 Informs the cash excess to Senior Banking Operation Officer assigned on transaction
checking and for further checking and reporting to Branch Manager.
Manager Branch Operation

 Proposes the transfer of ATM excess cash in to cash surplus account within one month after
the difference occurs for those customers difficult to identify account to Branch Manager.
Branch Manager

 Reviews the proposal of ATM cash excess report received from Manager Branch
Operation and approves to transfer cash excess account.
 Cash consignment
At the time of cash collection request

Manager Branch Operation: Requests the Cash Management at Treasury department for
the collection of excess cash through letter or through the system

 The total amount of the money to be dispatched should contains the breakdown of the
denominations thereof;

The letter should be signed by her/himself and Checks and Authorizes the transaction

 Jointly prepares, with the Senior Banking Operation Officer, the cash to be sent from the
vault.

Senior Banking Operation Officer : Requests for the ID card of the Officer of unit and
ascertains that its number is similar with the one that appears in the letter;

 Prepares the cash to be sent from the vault to receive branch/cash issue center, in
collaboration with Manger, Branch Operation;

 Identifies the officer over copy format which will be retained by the branch and makes her or
him sign on it to acknowledge receipt of the cash; and

 Transfers the amount and denomination of cash to be dispatched to the Banking Business
Officer through the system together with a copy of the handing & taking over format for
posting; and

Authorizes the cash till transfer by Banking Business Officer through system.

Banking Business Officer: Accepts the money through the system and posts it into the
system as payment.
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At the time of cash supply request
Manager Branch Operation
 Requests the Cash Management at Treasury department for the supply of cash
through letter that bears the stamp of the branch;
 Checks and authorizes the transaction; and
 Jointly checks, with the Senior Banking Operation Officer, the cash to be
collected from cash issue centre/branch as appropriate.
Senior Banking Operation Officer
 Counts the cash collected from receiving branch/cash issue center, in collaboration
with Banking Operation Officer assigned at table;
 Confirms receipts of cash by checking accuracy and lodges the money to vault
jointly with Manager, Branch Operation; and
 Authorizes the cash till transfer by Banking Operation Officer through system

Banking Operation Officer assigned at table

 Accepts the money through the system and posts it into the system as collection.
 Cash consignment in outlying branch
At the time of cash deposit at issue holding bank/BOA branch
Manager –Branch operation

Communicates the bank where the issue account is maintained through
a formal letter consisting of:
Denomination of the cash notes to be dispatched;
Type of notes i.e. deteriorated or good for issue; and
Name of the designated Banking operation officer by whom the cash is
to be delivered.
Authorize the cash withdrawal/transfer into the System
Confirms the proper receipt of cash and account credit as per the
initiated cash lodgment;
Senior Banking operation officer
Sorts all cash notes as good notes and deteriorated notes;
Confirms the cash holding branch put cash stamp and sign on the copy
of the letter of request
Authorize the cash withdrawal/transfer into the System
Confirms the cash breaks and bundles are in order and correct as per
the lodgment request;
Ascertains notes of Birr 50 and 100 counted in detail by concerned issue
holding branch staff
Receive the cash receipt confirmation duly signed and stamped by issue
holding bank and submit to senior banking operation officer for checking
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and custody;
 At the time of cash withdrawal from
memorandum account
Manager-Branch operation
 Requests the respective issue holding bank branch through
letter when the cash holding of an outlying BOA branch
dwindles; and immediately report to treasury when the request
is in excess of the available balance maintained with issue
holding bank branch to facilitate the required approved from
NBE;
 Communicates Treasury department in case of the need for
replenishing memorandum account at issue holding bank; and
 Authorizes transfers from Memorandum account to BOA’s
Payment and settlement account maintained at NBE in
consultation with treasury department;
Senior Banking operation officer
 Receive the requested cash after ascertaining its correctness
by counting in detail and appropriate journal entries are passed;
 Checks the movement of cash and balance of the
memorandum account maintained at issue holding bank. 22
 Basic Cash Precautions and Security
Basic Cash Precautions and Security
The Banking Business Officer shall perform the following in
relation to cash precautions and security:
Banking Business officer
 Give due care to accuracy in keeping and controlling cash;
 Arrive in cash area before starting of the working hour to
make necessary arrangements for cash operations of the
day and start rendering services to the customers as soon
as opened.
 Inform the branch’s management whenever unusual
transactions take place;
 Ensure all the blank spaces that appear before and after
the amount cash to be deposited have been closed;
 Check offline deposit forms, which is written on both the
original and the copy, have been identical;
 Keep cash notes inside the cash drawers out of public23view.
Concentrate while counting, receiving and paying cash;
Keep cash and cash items only in lockable drawers;
Avoid putting initials/signing on notes’ wrappers before the cash has
been wrapped;
Deliver slit/opened wrapped notes especially Birr notes of big
denominations to the customers;
Informs the customer to carefully count the cash given to her/him before
leaving the cash counter;
Avoid talking while counting cash, so as to prevent making any errors;
Check the amount of cash presented by the customer at the counter
while exchanging money notes (from one currency to another) before
executing the exchange;
Avoid exchanging of birr notes among Banking Business Officers; and
Avoid telephone calls / Silent their mobiles at all times but if in case
urgent call messages for an immediate attention arises responds after
serving the customer at counter.
Cash payment without affecting customer account in the form of Value
for tomorrow is not allowed for those customers who haven’t insufficient
balance in their account.
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Senior Banking Operation Officer/ Banking Operation
Officer
 Keep adequate cash in the Cash Office so as to be able to
meet immediate requirements;
 Ensure availability of sufficient coins to meet the moderate
requirements of BOA’s customers;
 Maintain the specimens of the signatures and the initials of
the branch’s authorized personnel;
 Ensure that cash is promptly transferred to her/him
 Arrive in cash area before starting of the working hour to
make necessary arrangements for cash operations of the day
and start rendering services to the customers as soon as
opened.
 Avoid putting coins in a money bag set aside for other
denominations; and
 Prohibit any one into the cash area, other than those
employees whose work involves some type of cash-handling;
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Manager Branch Operations
The Manager Branch Operations shall perform the following
in relation to cash precautions and security:
 Ensure that the cash limit is always kept within a limit;
 Ensure handing and taking over of cash has to be evidenced
by an authorization on the system;
 Ensure huge build-up of surplus cash in the Cash Office by
promptly transferring into the vault;
 Ascertain balancing and handing over of the cash in case of
the Banking Business Officer/Junior Banking Business
Officer unexpectedly faces health problems/emergency
cases before leaving the branch.

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 Post Transaction Checking and Custody Of
Documents

Senior Banking Operation Officer/Banking

Operation Officer
 Check the physical cash in ATM against balance on
T- 24 after receiving the report form the Officer
involved or by any concerned person in case of
excess/ shortage;
 Investigate the cause(s) of cash shortage/ excess
and reports to the Branch Manager;
 Make surprise checks of cash in ATM and branch
Vault; and report his/her findings and general
observations to Branch Manager;
 Receive source document and checks the handing
and taking over of cash; and
 File and keeps the source documents.
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THANK YOU!

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