To All State Leaders and Team Leaders

CIRCULAR 4OF 2016

Centillion Solutions and Services Pvt. Ltd
Grape Garden -1 (5th floor), No: 31, CSRIE, 17th H Main Road 6th Block, Koramangala, Bangalore - 560 095
Phone: Board 080 6696 0600 / Circular 4/2016 dated 25/04/2016
Subject:

• BCSP Operations
• Duties and responsibilities of National Leader, State Leaders and Team leaders

To all State Leaders and Team Leaders

We have issued detailed instructions to the Field Officials as to the conduct of BCSP Operations, Management of Funds, Regularisation of Overdraft at the end of each month, Reporting of Incidents to HO etc., The State leaders have access to the Senior Officials of Centillion through phone and E-mail and they can seek guidance and clarification on any matter concerning the BCSP Operations.

For the guidance of the Team we would like to reiterate some of the important guidelines and this will serve as a one point reference on some of the important issues.

1)BC Executives should not put their own money and do disbursement transactions at the BCSP. This is not a desirable practice and it will create problem for us with Income Tax Authorities. This also creates problems in reconciliation at Head office. The National Leader, State Leaders and Team Leaders should explain this to the BC executives and direct them to desist from such practices.

2)The BC executives should remit all the left over funds to the State Current account on the TOD regularisation date. The National leader will publish to the state leaders about the date for TOD regularisation date each month and the State leaders in turn will direct their Team leaders and through them the BC Executives about the date for TOD regularisation. The respective State Officials should impress up on the BC Executives of the need to regularise the TOD as a compulsory measure, mandated by the bank. This is also a risk management measure for the company.

3)When the TOD regularisation happens, ideally the balance in the State TOD account and current account should become NIL. This is because the Executives would be remitting back all the funds left with them after taking in to account the funds remitted to them by HO and the deposits accepted by them from HDFC Bank customers to the extent not utilised for disbursement. However we observe the following features in some of the states:

a)There is some credit balance in the state TOD and or Current account after TOD regularisation.

b)The credit balance in the TOD and or current account is less than the difference between the amount remitted by HO to meet the TOD interest and intercity funds transfer charges debited by the bank.

c)In case the amount remitted by HOis less to meet the TOD interest and charges debited by the bank, the state leader should askfor more funds to meet the differential from HO.

If the credit balance in the OD and or Current account is equal to the difference between the amount remitted by HO to meet the TOD interest and charges debited by the bank, then it is perfectly fine and acceptable.

4)There are also instances of the following features being observed in some states:

a)Some of the BCSPs do not remit the entire leftover funds to the State current account to regularise the TOD.

b)Some BCSPs remit extra funds to the State current account on the date of regularisation of TOD through funds disbursements to customers using own funds of BC Executives.

c)Some BC Executives hold back some funds and do not remit the entire funds left over with them On account of this issue and the features indicated under (a) and (b) above, the TOD may get regularised but it will create an imbalance in the BCSP funds status and creates problems in reconciliation.

Hence it is not desirable for the BC Executives to remit extra funds or lesser funds to the State Current account for regularisation of the TOD at the end of each month. BC Executives should remit the exact funds held by them as per their transaction register.

5)All BC Executives should maintain a transaction register as per proforma given in Annexure -3 and keep it updated when transactions (Disbursement or Deposits) happen at the BCSP. In some instances, the officials visiting the BCSP have reported to us that the transaction register is maintained but some columns are missing in the register. This should not happen. Please make the BC executives to maintain the register exactly as prescribed by HO.

6)When BC executives remit funds to the State Current account, the BCSP name & the TID numbers should be indicated in the pay-in-slip or remittance schedule so that the bank will capture those details which will reflect in the bank statement. In the absence of the said details HO Reconciliation team has to call the State leaders or send mails to get the details. Until these details are received the cash/funds held by the concernedBCSP will show an incorrect positionin the MIS published by HO. However the State’s overall funds position will be correctly reflated in the MIS and Reconciliation.

7)There are occasions when the State Leader or Team Leader or BC executive remit money on behalf of a few BCSPs in a bunched manner. The offical/BC Executive remitting funds should use individual pay-in-slips and indicate the BCSP name & the TID number. Same process should be followed when funds are remitted through the on-line mode. When this procedure is not followed, HO cannot find out the source of remittance and the reconciliation will remain incomplete and the BCSP wise balances will not reflect the correct position in the Service Point System (SPS). HO reconciliation team will have to call the State leaders or send mails to get the details. Some of the State Leaders do not preserve the details and inform HO of their inability to provide the BCSP wise breakup of the amounts remitted.

8)Carrying of cash by State Leaders or TLs to BCSPs should be avoided as far as possible. If at all it is done, it should be with prior permission of the National Leader and SMS should be sent to HO(Phone No: 9945811100) and signature of the executive should be obtained for receiving cash in the prescribed format (Annexure 4). Cash should not be collected from BCSP executives by State Leader or Team leader in the normal course. In unavoidable cases, if cash is collected by them from BC Executives fordepositing to the State current account (with prior permission from National leader), the signature of the State leader or Team Leader as the case may be should be obtained by the BC Executive in the prescribed format (Annexure 4) and SMS should be sent to HO (Phone No: 9945811100)

9)BCSPs should not accept or disburse cash of more than Rs.10000/- on any day from/ to any customer. Such instances are a violation of the norms prescribed by the bank. If such things happen, there will be serious audit objections raised by the bank’s auditors. This will affect the credibility of Centillion. Hence the State Leaders/ Team Leaders should sensitise the BCSP executivesand advise them not to do transactions in excess of Rs.10000/- without prior permission (in writing or mail) from the bank.

10)BCSPs should not the carry out any transactions not permitted by the HDFC Bank or sell Financial Products not approved by the bank.

11)BCSP executives should not carry the MATM or Transaction Register out of the BCSP premises except in the case of mobile BCSPs for servicing the customers.

12)No BCSP Executive or State leader or Team Leader or any other official who has access to Centillion funds should use the funds for personal purposes. Anyone found violating this norm and diverting Centillion funds for personal use will be dealt with suitably by subjecting them to disciplinary as well as legal action

13)The Bank statements and the MATM statements are regularly sent to all state leaders by HO. The Statements should be regularly scrutinised by the State Leaders to find out whether the figures are in agreement with the transactions in their state/Region

14)HO publishes the balance summary report for each state/Region. These statements should be verified and response mails should be sent to HO by the State Leaders stating that the balance tallies with the position arrived at by them or otherwise and informing HO of the difference, if any. HO will recheck the balance and get back to them promptly.

15)BCSPs/ State Leaders/Team Leaders should share the details of failed transactions. In the absence of correct and complete information, HO often finds it difficult to take up such instances with the bank promptly for clarification.

Wherever the word “State Leader” (SL) is mentioned in this Circular, it will include the Team Leader/salso in the respective states as far as duties and responsibilities are concerned.

Please take care of these points and act as per the instructions given by HO in respect of all transactions and dealings at BCSPs.The duties and responsibilities of NL, SLs & TLs is given herein.

Head, Risk and Compliance

Annexure -1: Daily balances at BCSPs

Date / BCSP Location Name / Opening Balance with BCSP (a) / Funds remitted to BCSP by State Leader(b) / Deposits Received by BCSP (c) / Total funds with BCSP d = (a+b+c) / Disbursements made to customers by BCSP (e) / Funds remitted by BCSP to State Leader (f) / Total Out flow of funds from BCSP g=(e+f) / Funds available with BCSP at EOD h =(d-g)

Annexure -2: Consolidated State funds position

Date / Opening balance in state Leader’s account (a) / Funds received from OD account by remittance from HO (b) / Funds remitted to BCSPs (‘c) / Funds disbursed by BCSPs to customers credited to State leader's account (d) / Remittance by BCSPs to State Leader's account (e) / Funds remitted by State Leader to Settlement account (f) / Total funds available with State Leaders at EOD (a+b+d +e-c-f))

Annexure 3: Transaction Register to be maintained by BCSP executives:

Description / Amount(Rs)
Opening Balance (should be same as closing balance of previous day) / A
Funds received from State leaders during the day / B
Funds remitted by BCSP to State Leaders during the day / C
Customer Name / Mobile No / Account Number / Transaction Reference number / Amount disbursed to customer (D) / Amount deposited by customer (E) / Balance with BCSP at EOD (F)
F=A+B+E-C-D
Total
SLs should help BCSPs in maintaining the cash register at each BCSP

Annexure - 4

Handed over Rs. ______
to SL/TL Mr.______
Signature of BCSP Executive
Date: / Handed over Rs. ______to BC Executive Mr. ______
Signature of State Leader/Team Leader
Date:

Annexure-5

Details of State TOD and Current Accounts
State / TOD Account No. / Current Account No.
Madhya Pradesh / 12082560001696 / 50200002876667
Maharashtra / 50200005782838 / 50200010578114
Gujarat / 50200011141461 / 50200004766400
Rajasthan / 50200011141451 / 50200005782864
Uttar Pradesh / 50200009118262 / 50200010568052
AP + Karnataka + Orissa + TN / 50200009118210 / 50200005782851
Bihar / 50200011145243 / 50200010577611
Haryana / 50200017239663 / 50200005782877
Urban BCSP – all States / 50200009118233 / 50200010577597
Annexure – 6: Responsibility Matrix
S No / Description / Person responsible / TAT / Remarks
1 / Funds requisition / State Leader / By 11 am / State Leader should assess the BCSP funds requirement based on past operations
2 / Funds allocation / National Leader / By 11.30 am / National Leader’s allocation should be based on SLs’ request supported by past operations data
3 / Funds Transfer / Business Lead/Deputy Manager, HO Operations / By 12 noon / The authorisation of funds will be done through E-Net
4 / Refund of leftover funds after BCSP’s disbursement / BCSP Executive / Weekly once/twice and 29th of every month / National Leader & SLs should ensure this by contacting the BCSP executives regularly
5 / Managing Deposits / BCSP Executive / Weekly twice / National Leader & SLs should ensure this by contacting the BCSP executives regularly
6 / Reports / BCSP level daily funds & State level consolidated funds position – State leader
Transaction Register – BCSP Executive / To be updated Daily.
To be submitted to HO twice weekly / State Leaders should not default on this. National leader should follow up with SLs and ensure this is done regularly twice a week.
7 / Month end Processing / State Leaders to collect all leftover balances and make balances at BCSPs Nil on 29th of every month or the date notified by National Leader without any exception / 29th of every month. (In February this will be on 27th) / National Leader and State Leaders should ensure that without using any internal funds, the TOD should be regularised every month by getting remittance of funds lying with BCSPs to Centillion accounts at state level.

Annexure-7: BCSP Funds Management Process Flow