BANK GUARANTEES

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					                                     INDEX

POLICY SECTIONS   SECTION                                                    SECTION
                  NUMBERS                PROCEDURE SECTIONS                  NUMBERS

                                            BANK GUARANTEES
                             PROCEDURES IN THE FINACLE SYSTEM TO ISSUE A      952.2.A
                               NEW BANK GUARANTEE- BG – ADD PROCEDURE
                                 PROCEDURES IN THE FINACLE SYSTEM - BG –      952.2.B
                                          “VERIFY” PROCEDURES
                                 PROCEDURES IN THE FINACLE SYSTEM - BG –      952.2.C
                                  “MODIFY” PROCEDURES FOR A BG ISSUED
                                PROCEDURES IN THE FINACLE SYSTEM - BG –       952.2.D
                                          ‘REVERSE’ PROCEDURE
                                 PROCEDURES IN THE FINACLE SYSTEM - BG –      952.2.E
                                           ‘CLOSE’ PROCEDURES
                                PROCEDURES IN THE FINACLE SYSTEM - BG –       952.2.F
                            ‘MARKING THE GUARANTEE FOR INVOKING’ AND BG
                                           ‘INVOKE’ PROCEDURE
                                 PROCEDURES IN THE FINACLE SYSTEM -BG –       952.2.G
                              “INQUIRE” PROCEDURE IN THE SYSTEM FOR A BG
                                                 ISSUED
                                PROCEDURES IN THE FINACLE SYSTEM - BG –       952.2.H
                                   ‘REVERSE MARK INVOKE’ PROCEDURE
                            PROCEDURES IN THE FINACLE SYSTEM - BG – ‘COPY’    952.2.I
                                               PROCEDURE
       DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.A                                   PAGE       01
 SIB      Procedures in the Finacle System to Issue a New Bank Guarantee-
                                BG – Add Procedure                                        September 11

 No.   SS CLK AM MGR                                    PROCEDURE NARRATIVE
BG – Add Procedure
Screenshot 1




Invoke GMM Menu.
Screenshot 2:




Select the function (shown in screenshot 2(a)) by pressing F2 and later come to the appropriate row (using
arrow keys) and press ‘Shift+F4’. Also Select the ‘Grnty Type’ (shown in screenshot 2(b)) by pressing F2
and later come to the appropriate row (using arrow keys) and press ‘Shift+F4’. Press F4. Then, Enter the
customer ID, ‘Guarantee class’ (by pressing F2 and later come to the appropriate row (using arrow keys)
and press ‘Shift+F4’), ‘Guarantee Amt’. Also enter ‘Issue/Eff. Date’ (only enter Eff. Date as issue date
will be already auto-selected by the system) and ‘Expiry date’. Enter the ‘limit ID’ of the customer,
‘Limit Margin’ (in %), ‘Oper. A/c ID’ and ‘Expiry period’. Press F6 (to move to next screen – i.e. as
shown in screenshot 3)
Screenshot 2(a):                         Screenshot 2 (b):




                                                    1
        DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.A                                   PAGE        02
 SIB      Procedures in the Finacle System to Issue a New Bank Guarantee –
                                                                                           September 11
                                 BG Add Procedure
 No.   SS CLK AM MGR                                     PROCEDURE NARRATIVE
Screenshot 3:




Select the Beneficiary i.e. G (Govt.) or O (Others). Enter the beneficiary name, address, City Code, State
Code, Country Code and PIN Code. Press F6.

Screenshot 4:




In this page, enter the ‘purpose of guarantee’ and ‘FD Reference No’ (i.e. A/c No. of FD kept as margin
by the customer). Enter the Import license/open general details in the ‘Computer Code’ field. Press F6
and later press F4.




                                                     2
       DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.A                            PAGE       03
 SIB      Procedures in the Finacle System to Issue a New Bank Guarantee-
                                                                                   September 11
                                BG – Add Procedure
 No.   SS CLK AM MGR                                  PROCEDURE NARRATIVE
Screenshot 5




Once F4 is pressed, the cursor will come to the ‘Option’ field, where the user has to press F10 to
commit/confirm.

Enter the margin details invoking option K.

Proceed to Verify following the procedures narrated under “BG-Verify Procedures”




                                                  3
        DEPARTMENTAL PROCEDURES MANUAL                        SECTION:P.952.2.B            PAGE       01
 SIB
               Procedures in the Finacle System - BG – “Verify” Procedures                 September 11
 No.   SS CLK AM MGR                                    PROCEDURE NARRATIVE
BG – Verify Procedure
Invoke menu GMM
Screenshot 1:




Select the function by pressing F2 and later come to the appropriate row (using arrow keys) and press
‘Shift+F4’. In ‘Guarantee Number’ field Press F2. Then the system will display all the records which are
pending for verification under the SOL ID. Press ‘Shift+F4’ after the row of that record is highlighted and
selected. Later press F4.
The user will have to go through all the pages of the record pressing F6 each time, after which he has to
view the Charges/Commission details page (using option ‘C’). The screnshot is given below.
Screenshot 2:




press F4 after viewing these details.

                                                    4
        DEPARTMENTAL PROCEDURES MANUAL                        SECTION:P.952.2.B         PAGE        02
 SIB
                Procedures in the Finacle System - BG – “Verify” Procedures             September 11
 No.   SS CLK AM MGR                                    PROCEDURE NARRATIVE

Screenshot 3:




Then the cursor will come to the ‘option’ field, after which press F10 to commit.
Screenshot 4:




The above shown ‘exceptions’ page will be dispayed. Select the suitable exception (using arrow keys) and
press F4(Exceptions can be overrideen by verifying by Manager level user and also by Assistant Manager
level user in some cases)



                                                    5
       DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.C                                   PAGE        01
 SIB    Procedures in the Finacle System - BG – “Modify” Procedures for a BG
                                                                                          September 11
                                        Issued
 No.   SS CLK AM MGR                                    PROCEDURE NARRATIVE

Invoke GMM Menu
Select the function (shown in screenshot 2(a) by pressing F2 and later come to the appropriate row (using
arrow keys) and press ‘Shift+F4’ (select Function ‘M’ to Modify). In ‘Guarantee Number’ field, press F2.
Then, all the BG records which are under the SOL ID of the branch will be displayed. Select the
appropriate BG record which the user wants to inquire (using arrow keys) and press ‘Shift+F4’.
Note:1
If BG number is known, a user can directly enter the BG Number and press F4.

Now, all the details of that BG will be displayed on the screen. (as shown in the above screenshot). Go
through all the pages of the record (i.e. screenshots 3, 4 shown under “Add” procedures P.952.2.A ),
pressing F6.
Screenshot 1:




In Modify function, a user can change the fields whichever are not locked. i.e. Fields like Expiry date,
limit margin, operative A/c ID, Expiry period etc. Press F6 to move to the next screen. In fields like
Guarantee Amount, Issue/Effective date, Limit ID as the fields are locked, no modifications are possible.

Modify the fields whichever requires changes. Press F10 to commit.

Once the modification entry is over, another user (i.e. Assistant Manager / Manager and above) will
verify this modification. Verification user too presses F10 to commit.




                                                    6
        DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.D                                    PAGE        01
 SIB        Procedures in the Finacle System - BG – ‘Reverse’ procedure
                                                                                            September 11
 No.   SS CLK AM MGR                                     PROCEDURE NARRATIVE
BG ‘Reverse’ procedure:
Invoke menu GMM

BG Reversal is an intermediary step prior to closure of a guarantee. Reversal is not required if the BG
status is “invoked”. Any expired guarantee can also be reversed. Reversal of guarantee will reverse the
contingent liability transactions already put through at the time of issue. The transactions are created as a
part of verification process.
The user will invoke GMM and use “R” – reverse function for reversal of the guarantee. The screen
interface is same as in the case of issue (Add procedure ).952.2.A, except the screen shown below)

Screenshot 1:




After all the pages are viewed, press F4. Cursor will come to the ‘option’ field. In ‘Option’ press ‘K’ (to
view margin details), after which the above screen will be displayed. Enter R in Function for Release.
Press F4. Cursor will come to the ‘Function’ field shown in the same page above. Type ‘A’ (to accept
and quit this page). Press F4. Now the cursor will come to the ‘Option’ field once again, where the user
has to press F10 to commit.

This process also needs verification by another user (i.e. by an Assistant Manager or Manager).




                                                     7
        DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.D                                    PAGE        02
 SIB        Procedures in the Finacle System - BG – ‘Reverse’ procedure
                                                                                            September 11
 No.   SS CLK AM MGR                                  PROCEDURE NARRATIVE

Screenshot 2: verification by another AM or manager:




After all the pages are viewed in the record, press F4. Then, the following screenshot will be shown.


Screenshot 3:




After pressing F4, the cursor will come to the ‘Cls?’ field (highlighted in yellow in the above screenshot),
where the user will have to press ‘y’ (to accept closing the guarantee) and press F4. Then the margin
details page will be displayed. Press F4 in the same page, after which the cursor will come to the ‘option’
field’ where the verification user will have to press F10 to commit.
                                                       8
        DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.E                                      PAGE      01
 SIB         Procedures in the Finacle System - BG – ‘Close’ Procedures
                                                                                              September 11
 No.   SS CLK AM MGR                                      PROCEDURE NARRATIVE

BG ‘Close’ procedure:

Once life cycle of a guarantee is completed, the user has to close the guarantee. Closure of guarantee is
done with function “Z” of GMM menu. ‘BG Reversal’ procedure has to be carried out prior to closure of
the guarantee. For BG Closure, the status should be either Reversed or Invoked.
Invoke menu GMM.

Screenshot 1




Select function “Z”

Screenshot 1(a)




The screen interface is same as in the case of issue. This process also needs verification.




                                                      9
       DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.F                                   PAGE      01
 SIB     Procedures in the Finacle System - BG – ‘Marking the guarantee for
                        invoking’ and BG ‘Invoke’ Procedure                               September 11

 No.   SS CLK AM MGR                                 PROCEDURE NARRATIVE
“Mark the guarantee for invoking” Procedure:
The user has to “Mark the guarantee for invoking”, before the guarantee can be invoked. This is only a
status change event and no transactions are created as part of ‘marking the BG for invocation’. Once the
guarantee is marked for invoking, invoke process can be initiated.

The user has to invoke GMM menu and function “G” for marking for invoke. The screen interface is
same as mentioned for issue of Bank guarantee – BG Add Procedure P.952.2.A. The user is taken to the
general details screen from where he has to go to option block before he gives commit by pressing F10.

Screenshot 1:




This process also needs verification by another user (i.e. by an Assistant Manager or Manager).




                                                   10
        DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.F                                   PAGE       02
 SIB      Procedures in the Finacle System - BG – ‘Marking the guarantee for
                         invoking’ and BG ‘Invoke’ Procedure                               September 11

 No.   SS CLK AM MGR                                  PROCEDURE NARRATIVE
BG ‘Invoke’ procedure:
Invoke menu GMM

If the user invokes the function “N” – invoke a BG by selecting a Guarantee Number, he is directly taken
to the invoke screen which is as under – Press F4

Screenshot 1:




After clicking accept, the user has to press F4, after which the cusrsor will move to ‘option’ field (shown
in the screenshot below).

Screenshot 2




Go to charges screen by entering 'C’ option, for recovering the charges. As a part of invocation,
guarantees liability transactions are reversed (as shown in the screenshot 3 below).
                                                    11
        DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.F                                   PAGE       03
 SIB      Procedures in the Finacle System - BG – ‘Marking the guarantee for
                                                                                           September 11
                         invoking’ and BG ‘Invoke’ Procedure
 No.    SS CLK AM MGR                                 PROCEDURE NARRATIVE
Screenshot 3:




At the time of invocation system defaults the operative account to recover from it. If there is sufficient
balance in the operative account, then the invocation goes through and 2 transactions are created. One will
be the reversal of the contingent liability, while the other will be a transaction as under:

Debit   -       Operative account
                Credit -      Invocation account

In this no “fructification” occurs.
In case there is insufficient balance in the operative account, the system will prompt a message. This
implies that either the Bank has to create another account for the customer (may be a loan account or
preferably an OD account) to reflect the liability.
This process also needs verification by another user (i.e. by an Assistant Manager or Manager).




                                                    12
       DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.G                                  PAGE       01
 SIB   Procedures in the Finacle System -BG – “Inquire” Procedure in the system
                                    for a BG issued                                      September 11

 No.   SS CLK AM MGR                                 PROCEDURE NARRATIVE
Invoke GMM Menu
Screenshot 1:




Select the function (shown in screenshot 2(a) by pressing F2 and later come to the appropriate row (using
arrow keys) and press ‘Shift+F4’ (select Function ‘I’ to Inquire). In ‘Guarantee Number’ field, press F2.
Then, all the BG records which are under the SOL ID of the branch will be displayed. Select the
appropriate BG record which the user wants to inquire (using arrow keys) and press ‘Shift+F4’ Later,
press F4. Now, all the details of that BG will be displayed on the screen. (as shown in the above
screenshot). To go through all the pages of the record (i.e. screenshots 2, 3 & 4 shown below), press F6.




                                                   13
Screenshot 2




               14
        DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.G                                      PAGE        02
 SIB    Procedures in the Finacle System -BG – “Inquire” Procedure in the system
                                     for a BG issued                                          September 11

 No.   SS CLK AM MGR                                    PROCEDURE NARRATIVE
Screenshot 3




Press F6.

Screenshot 4:




Press F4 after this page is invoked. After pressing F4, cursor will come to ‘option’ field in the 1st screen.
Then press F4, press F10, if the user is done with inquiring the BG.


                                                      15
     DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.H                        PAGE      01
 SIB Procedures in the Finacle System - BG – ‘Reverse Mark Invoke’ procedure
                                                                             September 11
 No.   SS CLK AM MGR                                   PROCEDURE NARRATIVE
BG ‘Reverse Mark Invoke’ procedure:
The beneficiary of the bank guarantee may initiate its invocation with the bank, immediately on default
by the applicant. Subsequently the claim may be withdrawn in due course of time. On receipt of the
claim, the bank marks the guarantee for invocation and subsequently on receipt of withdrawal of the
claim, the bank needs to restore the guarantee back to its original status.

This is achieved by menu GMM function ‘J’. The screen interface is as below:

Screenshot 1:




Function Code ‘J’ – The ‘Reverse Mark Invoke’ function is applicable only for guarantees, which are
‘Marked for Invocation’, and not for guarantees which have been ‘Invoked’. On Reverse Mark Invoke,
the system will restore the original status of the guarantee i.e., System to automatically reverse the status
from ‘Marked for Invocation’ to ‘Extended’ or ‘Issued and Effective’ status.

The History of such guarantees will display the guarantee was ‘Marked for Invocation’ and later ‘Reverse
Mark Invocation’ was done. Audit records also will have a record indicating that that ‘Reverse Mark
Invocation’ was done on the guarantee.


This process also needs verification by another user (i.e. by an Assistant Manager or Manager).




                                                     16
        DEPARTMENTAL PROCEDURES MANUAL SECTION:P.952.2.I                                  PAGE        01
 SIB       Procedures in the Finacle System to Issue a New Bank Guarantee-
                                                                                          September 11
                                BG – Copy Procedure
 No.   SS CLK AM MGR                                  PROCEDURE NARRATIVE



BG – Copy Procedure:

Invoke GMM Menu.

Select Function ‘C’ (for copying) and enter the guarantee number (or else by pressing F2 and selecting).
Press F4.

Copy function is used to copy a record and use the contents for adding another record. This function will
facilitate faster adding of the new record for which the contents may be similar to the record which is
copied.




                                                    17

				
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