Introduction Business Scenario Finacle CBS Process Overview Key Terminologies Step by Step Process

2. Introduction • Business Scenario • Finacle CBS Process Overview • Key Terminologies • Step by Step Process • Demonstration • Summary

3. Lesson Objective To understand the process and concept of outward clearing in Finacle CBS Duration 1Hour Customer Service Intended Audience

4. Business Scenario A Customer of your PO deposits a cheque for collection, drawn on another bank in your locality. You can perform the collection through local clearing. How will you lodge the cheque in local clearing and send it for collection in Finacle CBS? Let us see the generic process in detail for Outward Clearing in Finacle CBS.

5. PROCESS OF OUTWARD CLEARING AT SUB-OFFICE (SO) The following functions can be performed for capturing the details of the instrument from the menu option “HOMSO” A-Add M-Modify I-Inquire V-Verify  Approach for outward clearing at Sub Office (SO) in Finacle CBS Outward Memo for Sub-Office “HOMSO” The report to be generated by SO by invoking menu option “CHQLR” for generation of report for the cheques captured in the system and will tally the same with the instruments before sending to HO. Report of HOMSO “CHQLR”

6. PROCESS OF OUTWARD CLEARING AT HEAD OFFICE (HO) • The following functions could be performed: • Opening an Outward Clearing Zone • Suspending a Zone • Revoking suspension • Inquiring a zone • Deleting a zone • Releasing zone to Shadow Balance • Regularizing Shadow Balance • Approach for outward clearing at Head Office (HO) in Finacle CBS Maintain a Clearing Zone (HMCLZOH) • The following functions could be performed: • Add • Modify • Delete • Verify • Inquire • Instruments are lodged only for the opened zones • The user has the following options for entry of instruments: • Multiple instruments for a single credit • Single instrument for a single credit • Single instrument for multiple credit Clearing Zone Transaction (HOCTM)

7. The approach for Outward Clearing in Finacle at SO:

8. Uploading the instrument at HO by invoking the menu option “HCLUPLD” Finacle Process Overview The approach for Outward Clearing in Finacle at HO:

9. Key Terminologies

10. Key Terminologies (Contd…)

11. Given below is the step by step process to perform the outward clearing in Finacle at Sub Office (SO) Invoke the menu option HOCSO for lodging of the instruments at Sub Office level. The report to be generated by SO by invoking menu option “CHQLR” for generation of report for the cheques captured in the system and will tally the same with the instruments before sending to HO

12. Step by Step Process Given below is the step by step process to perform the outward clearing in Finacle at Head Office (HO) Invoke the menu option HMCLZOH (Maintain Outward Clearing Zone) to open a zone. HO will upload the instrument by invoking the menu option CLUPLD Invoke the menu option HOCTM (Outward Clearing Transaction Maintenance Online) to lodge and Verify (Set-wise instrument) and HOCTV (Verification of bulk instruments) an instrument. Invoke the menu option HMCLZOH to suspend the zone. Invoke the menu option HMCLZOH to release the lodgement to the shadow balance. Invoke the menu option HMCLZOH to regularize the shadow balance to regularize the zone.

13. CHEQUE TRUNCATION SYSTEM (CTM) • Process of Cheque Truncation System • HO will scan the cheques in the CTS system • The Service HO will generate a consolidated file of all the cheques that have been captured in the CTS system by the HO’s reporting to it. • The service HO would open an outward clearing zone and upload the file generated from CTS to Finacle • CTS would also generate a file to be sent to Clearing House. • The non-banking cheques should be captured in the office account meant for non-banking cheques in the CTS system • The Service branch will then release the zone • Process of Cheque Reject in CTS • CTS would receive the rejected cheque details from Clearing House • CTS will generate a file in Finacle in a specific format with the rejected cheque details • This file would then be uploaded in the Finacle system by Service branch user • The Finacle user would mark the cheques as rejected • The clearing zone would then be regularized • The non-banking cheques fund would lie in the office account for further action

14. Demonstration

15. Summary Congratulations!! You have successfully completed the lesson on Outward Clearing. Following is the summary of important points discussed in this lesson: Process of Outward clearing at Sub-Office (SO) • Invoke the menu option “HOMSO” for lodging and for verification of the instruments • Invoke “CHQLR” for generating the report for the instruments lodged and tally the instrument with the system, send the cheque to HO Process of Outward Clearing at Head Office(HO) Opening of a zone by invoking menu option “HMCLZOH” • Uploading the file generated by SO through menu option “HCLUPLD”. • Lodging can also be done of the instruments in the zone using the menu option HOCTM at HO • Invoke menu option HOCTM(Set-wise verification)/HOCTV(Bulk verification) • Suspend the zone by invoking HMCLZOH so that no more instruments could be lodged in that zone. • Release the instruments to the shadow balance by invoking HMCLZOH. • Rejection of the cheques have to be marked. • After realisation of outward clearing, regularize the shadow balance by invoking HMCLZOH. The status of the zone will be CLOSED. • The process of Cheque Truncation System (CTM) • Finacle CBS also facilitates marking a specific instrument, bank/branch pending from the existing clearing lot processing for any valid reasons. This can be done by invoking the menu option HMARKPEN • This pending status of instrument, bank/branch can be revoked later by invoking the menu HREVPEND

17. Now let us do a hands on exercise on this topic. Please refer to the Hands on exercise section of the job aid