6 1.00 Cash Management Process of Government of Bangladesh
Prepared by Date Version Nazmul Sadi Dec 010 1.0 B. PROCESS BACKGROUND SU!!AR" !he "rocesses #hich com"ose cash and de$t management s%stem evolved from recei"t & "a%ment in local currenc%' foreign de$t & grant' and internal de$t' is maintained $% $lend of automated & manual "rocesses. !ransactions ta(e "lace in different deliver% channels li(e over the counters of Bangladesh $an( $ranches' Sonali Ban( $ranches & Post offices. )ll government "a%ment & recei"t' recei"t & encashment of saving de"osit $onds are made through these $ranches' consolidated at district level in res"ective regional $ranches and $eing u"dated at DC) & D)* offices. +inall%' these are consolidated at )ccounts & $udgeting de"artment of Bangladesh $an(. !he main in"uts of the s%stem are che,ue & $ill for "a%ment' de"osit voucher-challan are for recei"t. !he in"uts are organized for entering into iB)S s%stems at district accounts office. Different re"orts for different offices are generated from the iB)S' after distri$ution of the re"orts res"ective offices reconcile the accounts. C. Entity !ode#s Ref . !ain Entities Responsibi#ities Commercial Ban( ./ecutes Pa%ment & 0ecei"t for G*B Bangladesh Ban( Maintenance of Ban( account of G*B Directorate of National Savings Collects & encashment of 1ocal Bond Post office Sales "ostage stam" in addition to Collection & encashment of 1ocal Bond )ccounts *ffices of CG) Process Bills' maintains accounts of G*B D. Process description Ref Process $% Ref Process Description 1.0 Sonali $an( $ranches onl% conduct receiving of "a%ment for Government of Bangladesh 2GoB3 #here Bangladesh Ban( has its Branch offices 4nderta(e transactions related government receipts on#y' sends dail% re"ort #ith de"osit vouchers-challan and scroll to the 0egional s SB *ffice. 1.1 Sends clearing chec( to regional clearing house for collection' if it5s #ithin the same $ranch a transfer ta(es "lace. BB regional office or Sonali Ban( collects the "roceed and sends $ac( to the $ranch #here collection "rocess successfull% occurs or returns or insufficient fund. 1. 6nternal che,ues are !ransferred or Branch transfer the amount and credits to return due to insufficient fund. government account #here fund is availa$le or no transaction ta(es "lace. .0 Che,ue return for 6nsufficient funds from clearing 7ouse & from internal transfer "rocess Branch collects the returned che,ue from clearing house. !he Branch office returns transfer che,ues for insufficient fund. 8.0 Pre"ares a re"ort for D)*-D)* & regional Bangladesh Ban( office Sonali Ban( $ranch office "re"ares a re"ort #ith all che,ue and scroll num$er and sends to D)*-DC) along #ith the che,ue9leaf #here D)*-DC) office enters the data #ith iB)S s%stems. D)*-DC) offices also receives a re"ort from Bangladesh $an( #ith detail "a%ment & recei"t transaction #here the net difference has $een re"orted' CG) matches that re"ort #ith the data it received from Sonali Ban( Branches' chec(s the che,ue9leaf & scroll num$ers if no difference is identified the% u"date the "rocess. :.0 SB !reasur% Branches 2#here BB has no $ranch3 0eceives "a%ment in cash' transfer & collection. Pa%s in cash & transfer to res"ective accounts. 4nderta(e transactions related government receipts payment' sends dail% re"ort #ith co"% of $ill-che,ue' de"osit vouchers- challan and scroll to the 0egional *ffice. :.1 Sends clearing chec( to regional clearing house for collection' if it5s #ithin the same $ranch a transfer ta(es "lace. BB regional office or Sonali Ban( collects the "roceed and sends $ac( to the $ranch #here collection "rocess successfull% occurs or returns for insufficient fund. :. 6nternal che,ues are !ransferred or return due to insufficient fund. Branch transfer the amount and credits to government account #here fund is availa$le or no transaction ta(es "lace. ;.0 Sonali Ban( Branches e/ecutes "a%ment +or all Government "a%ment Sonali Ban( $ranches ta(es the role' "a%s for Government against che,ues & Bills in cash' and "re"ares the "a%ment histor% along #ith che,ue leaf & $ills. 6.0 Che,ue return for 6nsufficient funds from clearing 7ouse & from internal transfer "rocess Branch collects the returned che,ues from clearing house. !he Branch office returns transfer che,ues for insufficient fund. <.0 Pre"aration of re"ort on "a%ment & recei"t Sonali Ban( $ranches "re"are a re"ort on "a%ment & recei"t #ith scroll num$er and sends to regional office for reconciliation =.0 Sonali Ban( regional offices carr% out the chec( clearing "rocess #here Bangladesh $an( authorised them to act 0eceives clearing chec( from $ranch offices ta(es necessar% ste" to collect the "roceed or return for insufficient fond =.1 Clearing chec( collection -return 6f the chec(s are cleared the regional office sends it $ac( to originating $ranch #ith collection ac(no#ledgement or return mentioning insufficient fund. >.0 0econciliation "rocess of Pa%ment & recei"t from its $ranch offices 0egional office receives all "a%ment & recei"t re"ort from the $ranches of its district region and reconcile for error omission. >.1 Pre"ares re"ort on net "a%ment & recei"t in its district $raches to re"ort the D)*-DC* and the Sonali Ban( head *ffice Sonali Ban( regional offices "re"are a re"ort sho#ing all "a%ment & recei"t transaction' net difference & scroll num$ers #ith date of all the re"orts it receives from the $ranch offices of its region. 10.0 Collection & "a%ment made $% Sonali $an( #ith in Dha(a "residenc% Sonali Ban( ?ithin Dha(a Presidenc% conducts onl% the receiving for Government 10.1 0econciliation of all transaction of ;; district offices 0eceive the information from regional offices of Sonali Ban(. Sonali Ban( $ranches in Dha(a send transaction data to G)SD and the% consolidate using their o#n "rogram' carr% out validation and generate hardco"%. 10. +inal re"ort on "a%ment & recei"t Government )ccounts & Services de"artment of Sonali Ban( receives all the re"ort from its ;; regional offices including of Dha(a "residenc% 2e/ce"t those #here BB offices are "resent3. 11.0 Bangladesh Ban( Pa%ment & recei"t reconciliation "rocess Pu$lic accounts de"artments of > regional office of BB sends re"ort to D)B 2de"osit )ccounts De"artment3 on their dail% transaction #hich in turn u"dates )ccounting and Budgeting de"artment of BB head *ffice. 11.1 0eceive & "a%ment transaction of internal de"artments of BB' 7ead *ffice' !he internal transaction includes dra#ing overdraft from #a%s & means' recei"t & "a%ment from de$t management of their !9 $ill-!9$ond "urchase & retirement' domestic $ond "urchase & encashment' "a%ment received & e/ecuted $% +0!MD etc 11. )d@ustments & u"date of accounts at )ccounting & Budgeting De"artment )BD receives the re"ort from Sonali Ban( on the sur"lus or deficit of "a%ment and instruct D)B to e/ecute Dr-Cr to Sonali Ban( accounts accordingl% #hich o"erates #ith D)B 11.8 4"date at De"osit )ccounts Bivagh 2BivaghADe"artment3 )ll the commercial Ban(s have their accounts o"erating #ith BB #ith its D)B. D)B e/ecutes re,uired Dr-Cr for $alancing the sur"lus-deficit #ith the commercial $an(. 11.: Determining Cash "osition )BD send a cash "osition to De$t management de"artment #hich is a result of consolidating its all "a%ment & recei"t' and net $alance of transaction from other de"artments and net of "a%ment & recei"t of loans & grants. 1.0 Sell & .ncashment of local De"osit $onds Directorate of National Savings "re"ares the monthl% statement consolidating sales from all commercial $an(s 2through BB3 & $% its o#n . 1.1 NSD "re"ares the consolidated re"ort NSD "re"ares the final re"ort consolidating all sell & "a%ment of $ands. 1. 0e"ort "re"aration !he final re"ort sho#s the entities & their sell & "a%ment after consolidating all transaction collected from different "rocess. Sends to )BD & De$t management de"artment of Bangladesh Ban(. 1.8 1ocal de"osit $ond sell $% commercial $an(s Commercial $an(s sell & retire $onds of > different scheme' sends re"ort #ith net "a%ment ad@ustment to regional $ranch BB #ithin given time 18.0 Sells of Bonds & Stam" at Post offices Bet to identif% the "rocess 18.1 0e"ort "re"aration Bet to identif% the "rocess' re"ort is made on the net of sells & collection from local $ond mar(et. E. PROB&E!S RE'U(R!EN)S Ref (dentified *ea+ness,prob#em $% Ref S-..ested impro/ement,re0-irement 1 De$t management de"artment is $ac( to cash "osition of Se"tem$er as )BD is una$le to "rocess the transaction data' it receives' as ,uic(l% as it is re,uired. Bet to finalise