General Banking Activities of United Commercial Bank

Introduction :

Bank is a financial institution which deals with money. Not all banks are the same. There are different types of banks: co-operative banks, savings banks, investment banks and central banks. Because of its transitional role, banking system occupies a vital place in a country’s economy. It confirms distribution and re-allocation of assets and keeps up the motion of economic activities. 


As monetary intermediaries, banks stand between investors who invest capital and debtors who demand capital. It assembles asset for both the public and private sectors, and provides inventive answers to meet the requirements of entrepreneurs and government agencies. Thus the banking segment plays a key role in the evolution of Bangladesh’s economy. After the independence of Bangladesh in 1971, six state owned commercialized banks were composed, two state owned banks that specialized in lending to the agriculture and industry, three foreign banks including standard chartered bank. The banking industry has faced momentous expansions from 1980’s. Private Banks has entered in banking industry, Micro finance banks grew rapidly, which has provided assistance to meet the needs of poor citizens.
Foreign trading is a large business which is run by commercial banks. Foreign trade means the exchange of capitals and services across the line. Expertise is offered by commercial banks. Foreign trade requires a flow of goods from seller to buyer and payment from buyer to seller. Here, bank plays as a conciliator between the buyer and seller.
The U . s . Commercial Bank (UCB) was established in Bangladesh as a banking company. I worked in the General Banking (account opening, clearing, transfer, deposit and cash), loan department, and LC department of this bank. This gave me the opportunity to know more on different factors of the company. So, I have prepared my internship report on “general banking” of U . s . Commercial Bank Limited.
The financial institution which deals with money and money worth instruments is called Bank. A bank is a financial in-between option that takes deposits and channels those deposits into lending activities. They do it either directly or through capital markets. In 1901, Justice Holmes wrote, in an Irish case (Lso are Shields Est): "The real business of the banker is to obtain deposits of money which he may use for their own profit by lending it out again. inch. "Banking means the accepting, when it comes to lending or investment, of deposits of money from the public, repayable on demand or otherwise, and revulsion by cheque, draft, order or otherwise” -- According to Section 5(b) of Banking Regulation Act, 1949. “The few who understand the machine will either be so interested in its profits or be so established by its prefers that there will be no opposition from that class, while on the other hand, the great body of men and women, in your head incompetent at knowing the tremendous advantage that capital derives from the system, will bear its trouble without criticism, along with perhaps without even suspecting that the system is inimical to their interests. ” The Rothschild inlaws of London writing to associates in New york, 1863. 

Shorter Story for Savings Product during Bangladesh

Any identity loan provider derives within the Italian word of mouth banco that means “desk/bench”. The word of mouth put to use through Renaissance by just Jewish Florentine bankers, what person useful to come up with your ventures higher than a good office covered by a good earth-friendly tablecloth during traditional circumstances. Whenever people focus on story for savings during Bangladesh, any savings product for health contained several branch clinics. An individual was initially old Status Loan provider for Pakistan together with one other contained 17 great financial bankers, several of which were definitely operated by just Bangladeshi hobbies and interests together with a couple of by just foreigners except for Pakistanies. They had age 14 little financial bankers. Nearly all savings products were definitely gathered during urban areas. Any freshly 3rd party governing administration without delay chose any Dhaka branch within the Status Loan provider for Pakistan when the principal loan provider together with renamed it all any Bangladesh Loan provider. The responsibility for Bangladesh loan provider was-
                 · regulating money,
                 · controlling credit ranking,
                 · monetary protection plan,
                 · administering transaction deal with together with
                 · the genuine currency exchange reserves.

Than the Bangladesh governing administration primarily nationalized the conjugal savings product together with proceeded that will piece together together with rename the many bankers. Foreign-owned bankers were definitely made possible to keep at it doing business during Bangladesh. Any coverage online business was initially at the same time nationalized together with has become a good origin of opportunity financial commitment monies.

Savings Community

All through year or so 2008 clearly there was serious guage within the savings product that have already established growth. Comprehensive money amplified by just 18. 03% together with progress within the savings marketplace amplified by just 15. 84% during 2008 contrary to your 2007 numbers of money together with progress within the savings marketplace. Any country’s savings product stayed at reliable within the universal money havoc due to the fact for decreased volume of universal, integration together with health and well being by just tone direction for director. Any serious for factor for this growing began adhering to bank’s continuous growing for mortgages together with deposit
· private financial bankers (PCB),
· foreign financial bankers (FCB), together with
· specialized enhancement bankers (SDB).

Number of Bankers

Any savings product is composed of Savings Product for today’s Bangladesh is composed of a lot of lists. They are defined with dependable, possession & locale
opinion. Such an example bankers run Nobel-prize identified as Grameen Loan provider. This may be a unique micro-finance foundation, which unfortunately revolutionized the idea of micro-credit. The loan provider did the trick meant for poverty elimination and also empowerment for most women during Bangladesh. With dependable opinion, the following are any different kinds of bankers.

• Principal Loan provider
• Financial Bankers
• Unique Enhancement Bankers

Principal Loan provider: Bangladesh Loan provider:

Bangladesh Loan provider stands out as the Principal loan provider for Bangladesh. During 1972 the government for Bangladesh refreshed any Dhaka branch within the Status Loan provider for Pakistan when the principal loan provider. Depending on benefit with 18 December 1971 titled it all Bangladesh Loan provider. Bangladesh Loan provider has long been being employed when the principal loan provider seeing that health for Bangladesh. Bangladesh Loan provider achieves most of the attributes that your particular principal loan provider in any united states is certainly likely to function. A key position is certainly issuing for money, running any country’s currency exchange together with regulating any savings marketplace within the united states. Many other attributes comprise credit ranking deal with, drama as the removing place, position invention, lawn enhancement, SME enhancement, alternative enhancement, together with enhancement for all natural solutions. Any Bangladesh Loan provider provides a overseeing body system for ten participants just like Governor mainly because a leader. Independent of the head office during Dhaka, there is ten even more companies, of which several during Dhaka your decide one every one during Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Rangpur together with Barisal.

Unique Enhancement Bankers

Unique Enhancement Bankers happen to be mainly intended for exceptional marketplace. Certain bankers are meant meant for eliminating poverty but some happen to be meant for lawn enhancement from a united states. At the same time often times there are unique bankers working for enhancement within the united states.
Right out the unique bankers several bankers were definitely designed to fulfill the credit ranking necessities within the lawn marketplace with regards to Bangladesh Enhancement Loan provider Small (BDBL) is ideal for giving word mortgages into the alternative marketplace.
Bangladesh Krishi Loan provider together with
Rajshahi Krishi Unnayan Loan provider Directed at selected division many other Unique bankers happen to be:

• Grameen Loan provider, 
• Bangladesh Krishi Loan provider, 
• Bangladesh Enhancement Loan provider Ltd, 
• Rajshahi Krishi Unnayan Loan provider,

Common Loan provider Ltd,
■ Bangladesh Somobay Loan provider Small

Finance companies:

Non-banking finance companies may not be bankers. It all have driver's license in Loan provider Action, 1993 to be effective those associations is unable to function most of attributes for bankers.

During this number happen to be (that i) hiring agencies (ii) place setting up boat loan companies (iii) financial commitment provider (iv) stock exchange.

 Branch & Machine Savings:

Savings product during Bangladesh keeps going thru branch savings standard. In branch savings, online business is certainly conducted by just a simple office environment from a networking for companies when playing in
machine savings; online business is certainly conducted by just a simple office environment. Meant for ease of your treatments, these confirm correspondent rapport utilizing many other machine bankers. During Bangladesh branch savings treatments happen to be pre-dominant. Most of the reserved bankers use thru countless companies to be found throughout & not in the united states. They need correspondent rapport when using the unfamiliar bankers.

Past Historical past for United Financial Loan provider Small (UCBL)

United Financial Loan provider Small was initially built-in as the general population small provider within Agencies Action. 1994. UCBL’s foibles were definitely started in for Bangladesh loan provider and also Loan provider companies’ Action 1991, over the final June 1983, Any owner chairman and also standard of the particular point in time through leadership of late Mr. Shahjahan Kabir. She was initially owner chairman, what person have a challenging dream about hovering a good financial loan provider that would play a role in any socio-economic enhancement of your united states. He previously a challenging working experience as the superior banker.
To locate the vision finished couple tremendously trained together with thriving people become a member any chairman. Utilizing adequate hardworking, intellect together with creativity each individual people showed clearly their selves in niche for online business during the excursion for UCBL. Depending on progression Mr. Nazrul Islam Mazumder has become after that chairman once completing Mr. Shahjahan Kabir any owner for UCBL.
Governing administration driven that will United Financial loan provider Small alongside certain self-motivated together with hardworking people together with named industrialists within the united states. It had become developed as the general population provider during Bangladesh over the 26th June, 1983 within provider Action 1994 together with mentioned during Dhaka Stock exchange small over the 30th November, 1986 together with Chittagong Stock exchange Small over the 15th November, 1995.

Report about United Financial Loan provider Small

Identical many other loan companies United Financial Loan provider is not going to deliver all concrete system even so it gives you numerous revenue corresponding products that will a users. Yet, United Financial Loan provider begun as the minor Loan provider during middle 1983 together with started again as one of the most well known earliest iteration bankers during Bangladesh. It all distinguishes again with many other secret bankers by just a personalised products, imaginative strategies together with valuable direction product. At the same time an incredible marketing web product for 148 companies managed to get it much easier to results.
Your bank has got a in together with diversified clips for savings for example List price Savings, SME Savings, Commercial Savings, Off-shore Savings, together with Remittance or anything else. United Financial Loan provider has got lengthy periods of a sector by just diversion among the numerous clips for savings for example:

• Retail Savings: List price Savings may be a mass-market savings the place users take advantage of most of savings products with native companies for larger sized financial bankers. Products comprise personal loan, launch together with viewing numerous balance, issuing debit or simply mastercard or anything else.
• SME Savings: Minor together with low to medium undertaking savings succeeds meant for designing positions meant for decreased money consumers. These assistance rising market growing, community solidity, and play a role in any enhancement associated with a strong secret marketplace. Loan provider at the same time analyze together with keep tabs on business loans, running online business finance problems, costing products and services together with working for deeper enhancement for SME.
• Corporate Savings: Commercial savings, known as online business savings, looks at any aspect of savings the fact that is about commercial users. Additionally, it is dealing with for usual write-downs meant for mortgages that have already sourced. A Commercial savings provider.

features effortless online business for issuing mortgages that will technical counts, which include being able to help prevent duty paid back by just internationally subsidiaries, running shifts during currency exchange interest rates or simply doing exercise data for finance products required for any build associated with a different office environment, put or simply many other area.
Your bank at the same time gives you a people utilizing together incoming together with outgoing remittance products. Thereby any expatriates get a lovely way that will ship revenue thru adequate tv channel. Your bank, trying to execute a respected job during the market hobbies within the united states, is certainly safely and securely interested during the enhancement for market, business together with community by just checking out networking improvement together with different systems adoption of having economical appeal.

Board for Owners
Snowboard for Owners for UCBL comprises any huge pro together with high-qualified online business gents for Bangladesh. Well-designed ways of them body shapes assistance any direction to achieve the maximum end goal within the loan provider. Any participants within the Snowboard for Owners are definitely the rather recognized online business Fella for Bangladesh. Any circulate for snowboard for owners within the UCBL is certainly put in during appendix.

 Management
Your bank has got during a Direction with the multitude of highly skilled together with eminent bankers within the united states of varied working experience together with abilities correctly contributed by just Mr. Muhammed Ali, a good strong banker, mainly because a Running Overseer together with good schooled adolescent, energised together with concentrated officers using missionary passion to your growing together with success within the foundation.

Corporate Material easily
Commercial Material is certainly specified during the appendix.
 
Desired goals for UCBL
To present quickly together with first-class provider by means of fashionable it.
Overall components any UCBL lanced enhancement growing within the loan provider to generally be endured all this system is going to be kept.
By just developing congenial rapport amongst the Loan provider and also users, we need to are provided closer to execute a pivotal job during nationalized enhancement.
By just spending any liquidity of your evaluated shareholders money getting work and gives him or her top dividend.
During this economical promote, your bank could be to deliver different originality savings products that will a evaluated users together with improve some appearance.
To ensure the growth for pro superior for fella ability by just rising the procedure efficacy together with electronic experience.
That will some job by just designing inspiring savings provider during economical promote.
 
Goal
Available money salutations that induce, regulate together with expand some of our clients’ variety despite the fact that developing products you can daily life during the smaller communities people deliver.
 
Idea
To generally be your bank for earliest solution thru maximizing valuation for our people, shareholders & people together with resulting in any nationalized market utilizing community responsibilities.
 
Heart Attitudes
Often times there are heart attitudes for UCBL as follows.

• People insert some of our users earliest 
• People underline regarding pro ethics  
• People hold superior in anyway stages

 General Banking

  Every day financial transaction involving bank technique will be the major function and that is managed by simply standard bank industry. They have in order to meet the customers can use require pertaining to income and get expenditure at their store. The idea starts up brand-new records, ahead customer’s income derived from one of spot for a yet another by way of issuing standard bank nfl draft, shell out get, certification, collects most costs similar to community check series, inward along with out costs series pertaining to buyers. Standard bank can be often known as Full price Bank. Throughout UCBL, Mirpur Highway Side branch, sectors underneath standard bank segment are generally:

1. Bill cracking open segment
2. Income segment 
3. Put in segment 
4. Remittance segment 
5. Records segment 
6. Paying off segment 
7. Various other Customer satisfaction segment 

Account Opening Section of UCB Bank

Responsibility of the customer service starts with opening of new account in the name of new customer. This is the starting point of the client bank relationship. By opening a merchant account, the bank bridge it’s customer to avail the facilities offered by the bank. This is one of the most important parts of a side, because by opening accounts bank mobilizes funds for investment. Many rules and regulations are followed and various documents are taken while opening a merchant account. UCBL has various types of deposit is the reason its customers.

Current Account:

This type of account is opened by both individuals and business concerns. Frequent transactions (deposits as well as withdrawal) are allowed in this type of account. It is purely a demand deposit account. Some Important Points of current accounts are as follows-

•         Minimum opening deposit of TK.1000/- is required;

•         No withdrawal limit.

•         No interest is given upon the deposited money;

•         Minimum Tk.1000/= balance always must be maintained.

Savings Account:

Individuals for savings purposes open this type of account. This deposit is primarily for small-scale savers. Based on deposited amount Interest is given here. Interest on this account is calculated and accrued monthly and credited to the account half yearly. Important Points of

savings accounts are:

•         Minimum opening deposit of Tk.1000/= is required;

•         Minimum Tk. 500/= balance must always maintain.

•         Withdrawal amount should not be more than 1/4^th of the total balance at a time

•         Withdrawal limit is twice in a month.

•         If withdrawal amount exceeds 1/4^th of the total balance at a time no interest is given upon the deposited money for that month.

 Special Notice Deposit (SND) FORMER STD Account

Any individual or corporate body can open Special Notice Deposit Account, which is an interest bearing deposit account, for a short period of time. However, 7 days of notice is required if the customer wishes to withdraw money from this account. Interest rate on SND accounts will be varied based on the amount and not on the customer or tenure. Interest is calculated based on daily minimum product and paid two times in a year.

Call Deposit

When the money market is tight such deposits attract higher rate of interst and then to be treated as banker’s borrowings as call loans. Sometime the banker secures funds from the money markets usually from other bankers against receipt to meet his purely tepmorary shortage of funds. These debts are repayable immediately at call.

Formalities for Opening an Account:

For opening the account, the first hand requirements:

•         Application on the prescribed form

•         Introduction of the applicant

•         Specimen signature

•         Two copies of passport size recent photograph with attested by the introducer.

At first customer service desk want to know whether the customer has introducer to open the account or not? If yes then give him/her a printed Account opening Form along with Specimen Signature Card, Customer Transaction Profile Form and Information form on Money Laundering. After that, request customer to fill up the form duly and submit the form with required documents.

Step taken at the Time of Opening the Account

Before opening of a current or saving account, the following formalities must be completed

•         Inform customer of the essential conditions under which the account will be operated (e.g. charges, minimum balances etc.).

•         Receive completed appropriate account opening form and other required documents including two recent photographs for each signatory.

•         Obtain identification of client, verify signature of introducer.

•         Have all documentation approved/ initiated and cancels blank spaces on signature card.

•         Take approval of General Banking In-Charge / Manager.

•         Allocate account number and have initial deposit slip prepared and deliver to cashier.

•         Must be 18+ and with sound mind.

Documents Required:

1    Personal Account (Individual/Joint):

•         Two Copies of Passport size photographs of the applicant attested by the Introducer and one copy passport size photograph of the Nominee attested by the applicant.

•         Copy of passport/National Identity Card/ Voter ID Card

•         Details of occupation/employment and sources of wealth or income

•         Joint Declaration Form (For joint a/c only).

•         Employee’s Certificate (in case of service holder).

2.   Partnership Account

.    Introduction of the account.

.    Two   photographs of the signatories duly attested by the introducer.

.    Partnership letter duly signed by all partners (Sign should be similar as stated in

Partnership Deed).

.    Partnership Deed duly certified by Notary public.

•         Registration (If any).

•         Updated Trade license

3. Limited Company

•         Introduction of the account.

•         Two photographs of the signatories duly attested by the Introducer.

•         Valid copy of Trade License.

•         Board resolution of opening A/C duly certified by the Chairman/Managing Director.

•         Certificate of Incorporation.

•         Certificate of Commencement (In case of Public limited company).

•         Certified (joint stock) true copy of the Memorandum and Article of Association of the Company duly attested by Chairman or Managing Director.

•         List of directors along with designation & specimen signature.

•         Latest certified copy of Form - xii (to be certified by register of joint stock companies) (In case of Directorship change).

•         Rubber Stamp (Seal with designation of each person)

•         Certificate of registration (In case of Insurance Company - Obtained from department of Insurance from the Peoples Republic of BD).

4.   Proprietorship Account

•         Introduction of the account.

•         Two   photographs of the signatories duly attested by the introducer.

•         Valid copy of Trade License.

•         Rubber stamp.

•         TIN number certificate.

•         Identity (Copy of passport).

•         Permission letter from DC/ Magistrate (in case of newspaper)

5. Club / Societies Account

•         Introduction of the account.

•         Two photographs of the Signatories duly attested by the introducer.

•         Board Resolution for Opening A/C duly certified by President/ Secretary.

•         List of Existing Managing Committee.

•         Registration (if any).

•         Rubber Stamp.

•         Permission letter from Bureau of N.G.O. (In case of N.G.O A/C).

Account closing procedure:

To close account, a customer has to provide a written application. After submitting the application he has to submit the final cheque to withdraw full amount from his account. Bank charge will be deducted and after submitting unused cheque books,his “account opening” form will be rubber stamped and identified as closed then.

Issuance of new Cheque Book

A customer needs a cheque book to open account,especially for savings account and current account holders.Thus he can withdraw money whenever needed. A cheque book requisition slip is prepared and signed by the client, a new book is issued after that. The number of pages in the cheque book will differ according to the customer’s request and the type of his account. Every single page of the cheque book will be signed by authorized party of the bank. On the cover of the cheque book, account holders name will be written. Current,savings,CC and SND etc account holders will get cheque book. If the account holder is of 12 age and below, his legal guardian will get the cheque book of 10/20 leaves.

Issuance of Deposit Sli

If a customer decides to deposit money, he has to collect a deposit slip from the customer service department of the bank.

3.2.2 Deposit Sector

Deposit is the main function of bank. From the beginning of banking system it is known to us that deposit collection is the main operation of the bank.

Acceptance of Deposits

The most vital standard functions of commercial bank are accepting deposits as there are no businesses without deposits. The types of deposits UCBL accepts are given below:

a)       Demand Deposits

b)  Time Deposits

Demand Deposits

Customer can withdraw these kinds of deposits without giving any notice in advance. These types of deposits are accepted in UCBL through:

A)     current account

B)  Savings account

C)      Call deposits from the fellow bankers

Time Deposits

Customers can withdraw these kinds of deposits at a predetermined time or date or after passing a period of notice. When an account is created in the name of the customer, a contract is needed between them. So between customer and bank, a contract is done before accepting these types of deposits. This contract will not be valid if both parties are not eligible to enter into the contract. UCBL authority stays very much careful and vigilante about the eligibility of the customer because opening this type of account creates the original bond. The bank also has to pact with different types of people of different status, attitude and individuality.

Bearer Certificate Deposit (BCD), Fixed Deposit Receipt (FDR) and Short Term Deposit (STD) – these types of time deposits are accepted by UCBL.

Short Term Deposit (STD)

In this type of account, the customer must keep his deposit in the bank for at least 7days to get interest. STD does not offer better interest rate from savings deposit. Customer can not withdraw from this account frequently and he has to give notice in advance to withdraw money.

Fixed Deposit Receipt (FDR)

Customer deposits money in this type of account for a period of time which is communicated to the customer in advance. On such deposits, bank offers higher rate of interest on revenue as they does not keep cash funds against these deposits. Generally 50% or more of total deposits are added up from the deposits. Generally customers can open these types of deposit accounts for a certain period of time with a certain amount of profit.

Department of cash payment

A banks cash sector communicates the liquidity strength of the bank. As it has to deal with money, it is also susceptible. This department does the most vital work, which is, adding to the wages of bank along with providing customer care with their superior and quick services. UCB mirpur side has a well outfitted and decked out cash department which has online computer system and a digital measured machine. Cash payments can be made very quickly as it takes a few seconds to see the account balance. The transaction , involving cash is called cash transaction. Cash transaction involves:

• Cash payment
• Cash receipt

Process of cash payment:

Cash payment in this counter is made to customers with a valid cheque. Customer has to place the cheque on the counter to get payment. Payment procedures are given below:

1. The cheque leaf is checked to see if it is worded in the right way. Branch seal, Date, total amount to be withdrawn (in figure and word) and signature of the drawer is covered in the cheque leaf. It is also checked whether the “bearer” word is crossed away or the cheque is in the name of any establishment. From cheque holder, a receiver signature is also taken on the back of the cheque and the denominations of notes are also written there. 
2. Signature confirmation is done by matching signature with the sample, giving confirmation of the verifier and confirmation seal. 
3. Account is debited and the cheque is cancelled by the officer. Then it is posted in the computer system and transaction number and posting stamp is attached on the cheque. 
4. Cash payment officer takes the cheque. 
5. A “cash paid” stamp is attached on the cheque, and then this entry is taken in the cash payment register. 
6. Entry is posted in the debit drawer account and notes the transaction number on the top of the cheque.

 Cash receipt procedure:

1. First it is checked whether the deposit slip is properly filled up with every details needed. (e. grams. account number, amount in figure and word, depositors sign.
2. Cash receiving police officer takes the money, counts them twice and matches with the deposit slip and also writes down the value of notes in the rear of the cheque.
3. The money receiving police officer also writes down the amount in figure and words in front side of the cheque. 
4. A signature of cash receiving police officer and “cash received” stamps is attached on the front side of the cheque.
5. It is added in the record book and a scroll number is written in the cheque.
6. The machine credits and places the deposit slip in the concerned account.
7. Depositor gets a counter folio as a receipt. System balances the money by getting one combined cash debit voucher posting.

The balance which is closed for today will be opened from tomorrow. That means today’s ending balance is “closing balance” that is “opening balance” tomorrow. This department operates the most vital operations of the bank. The police officer checks all books which is maintained in this department.

• Cash Insurance Limit
• Maintenance of Cash Remittance

By following the regulations of the bank, the money department in-charge keeps the money payments and its records. If the amount of money passes across limit, the money manager informs the main side to take the additional money or vice versa through Inter Side Credit Ad vice (IBCA) type transaction.

Banking via online system

All transactions in UCBL are done through online banking system. UCBL uses ultimo customized software to process daily transactions from all of its 100 twigs. Those things of UCBL get below