Inward clearing

It is important that Inward clearing must also be lodged in a

new zone every day.
Some important Terms used in finacle
Avail
Carved
Deficit

means the available balance in the account.

means the amount marked as reserved on account of
instruments lodged in the inward clearing.
means if the account balance in the account is insufficient,
then it shall display shortfall amount.

Flow Charts
Sr. Description
No.
1
Open Zone
2
Lodge Cheques
3
Verification
4
Tallying with Bar amount
5
Suspension of Zone
6
Revoke Of Zone
7
Validation of Instrument
8
Posting of Zone
9
Close Zone

Menu

Option

MICZ
ICTM
ICTM
ICTM
MICZ
MICZ
MICZ
MICZ
MICZ

O
A
V
I(S-sub Option)

S
R
V
P
Z

Procedure for opening Inward clg. Zone

A. OPEN ZONE
The authorized official shall open inward clearing zone using menu option
MICZ. It may be noted that all inward clearing zones must be closed on the
day they are opened; otherwise system shall not allow the user to do the
day end of the day.
Menu option MICZ
1. Function O (Open Zone)
2. Zone Enter the zone code in the first field, or select it from the list.
Zone codes prefixed by EC are defined by data centre only for extension
counters & branches shall not open these zones for lodging inward
clearing. Branches shall open MICR zones for lodging MICR instruments.
Branches shall open non-MICR zones for lodging outward reject
instruments i.e. instruments presented in outward clearing but returned
unpaid. In the field next to zone code, system automatically displays
todays date (i.e. BOD date). System does not allow to open inward
clearing zones in future dates. Press F4. The system shall activate zone
details block.
3. BAR Num / Date Enter the bar number as per the details available on

the inward clearing schedule. In the next field, enter the date of inward
clearing schedule.
4. Total Instrument of BAR Enter total number of instruments as listed in
the inward clearing schedule.
5. Total Amt. BAR Enter total amount as claimed by clearing house vide
inward clearing schedule.
6. Press F4. The cursor shall appear in the Option field. Press F10 to
commit. Press F3 to quit.
B. LODGE INSTRUMENTS
Menu option ICTM (Inward Clearing Transaction Maintenance)
1. Function A (Add)
2. Zone Enter the zone code or user can press F2 and select the zone
code from the list. System shall not allow the user to lodge instrument in a
zone, if the zone is not in open status. Press F4. System shall activate
instrument details block.
3. A/c Num Enter the A/c No. If the user presses F4 or F11, system shall
display A/c holders name, SOL id where the user is maintaining a/c and
Available balance. This may be useful for the user to take appropriate
decision.
4. Instrument No. In case of customers cheque, enter printed serial
number of the cheque. (Lodgment of Pay/Cash Order in ICTM is discussed
in later part of this document.)
5. Instrument Amount Enter the amount.
6. Transaction Particulars (optional) Free text field. E.g. user can enter
payee name.
7. Inst. Date (optional) User shall enter instrument date.
8. Press F4 or down arrow of keyboard to lodge next instrument.
9. If the user presses F4 key a. System may move up the current record and bring a blank record, if it
does not come across any warnings/exceptions/errors. User can lodge
next instrument.
b. System may raise warnings/exceptions like Cheque Cautioned <
Manager> if the cheque is marked as cautioned in the system, Chq.
Unusable <Manager> if the cheque is marked as destroyed in the system,
Chq. Not Issued <Manager> if the cheque is not issued to the customer
through the system etc. There are two possibilities
i. If the user wishes to pass the instrument with warnings/exceptions, he
can press F4 to proceed. System shall move up the current record and
bring a blank record. User can lodge further instruments.
ii. If the user does not wish to pass the instrument, then user shall press
F3 in the warnings/exceptions list and take appropriate action like
returning the instrument etc. Procedure to return the cheque is discussed
in later part of this document.
c. System shall not allow the user to press down arrow to lodge next
instrument, if it comes across any error in the account or instrument like

Account is closed, Chq. Stopped, Account Frozen, Chq. Already

Passed etc. User shall press F3 in the exceptions list and take
appropriate decision like returning the instrument etc. Procedure to
return the cheque is discussed in later part of this document.
10. If the user presses Down Arrow of the keyboard, and if the system
comes across any exception/warning, although the system shall move up
current record and bring a blank record, but at the same time it shall
display a message Scheme level exceptions exist. If at this stage user
wishes to return the instrument, then he shall press Up arrow of the
keyboard to bring previous record and take necessary action. If the
system comes across any errors in the account or instrument, then it shall
not move up the current record and shall display a message Could not
carve as there are scheme errors.
11. After lodging all the instruments user shall press F10 to commit.
C. MARK INSTRUMENT AS RETURNED (INWARD REJECT)
If the instrument is drawn on us and is required to be returned due to the
reasons like instrument is marked as stopped, instrument is marked as
cautioned, a/c is frozen, insufficient available balance in the account etc.,
and then the following steps may be followed for marking the instrument
as rejected.
a. After entering the instrument details, if the user presses F4 and if the
system comes across any exception/error, it shall display the same on the
computer. If the instrument is to be returned, then the user shall press F3
and follow following steps to mark the instrument as rejected.
b. After entering the instrument details, if the user presses down arrow
and if the system comes across any exception, it shall display a message
Scheme level exceptions exist and shall move up the current record. If
the instrument is to be returned, the user shall press up arrow to bring the
record & press F4. The system shall display a list of warnings/exceptions.
If the instrument is to be returned, the user shall press F3 and follow
following steps to mark the instrument as rejected.
c. After entering the instrument details, if the user presses down arrow &
if the system comes across any errors, it shall display a message Could
not carve as there are scheme errors and shall not move up the current
record. User shall press F4 & the system shall display a list of
warnings/exceptions/errors. If the instrument is to be returned, the user
shall press F3 and follow following steps to mark the instrument as
rejected.
1. Carving N (No)
2. Rejection Type I (Inward)
3. Press F6. Screen equivalent to Screen 10 shall appear on the desktop.
4. Inst. Alpha User may enter instruments alpha series code.
5. Pres Bk/Br Code (mandatory) In the first field, enter the presenting
bank code (two digit) & in the next field enter branch code (six digit i.e.
combination of city & branch code). Alternatively, user shall type three
digit sort code of the bank in the first field and enter city code (e.g. for

Mumbai enter 400, Delhi enter 110 etc.) in the next field and press F2.
System shall list all the branches of the bank within the city code. Select
the branch code by pressing shift+F4.
6. Press F6. Screen equivalent to Screen 11 shall appear.
7. Reject Code1 (mandatory) Press F2 for list and select rejection code
by pressing shift+F4. If there are more than one reason to reject the
instrument, then user shall enter the same in next 4 fields.
8. Press F4. System shall display inward clearing rejection charges
screen .
9. If the user wishes to change the charges, he can modify the same.
Press F4.
10. Press F6. The system shall come back to instrument details screen of
ICTM. User can press down arrow of keyboard to lodge further
instruments.
D. MARK INSTRUMENT AS RETURNED (OUTWARD REJECT)
Instruments presented by the branch in the outward clearing but return
unpaid by the drawee bank shall be marked as outward reject in the
system. Marking of outward rejects must be done before regularization of
the outward clearing zone, through which the instruments were lodged
and presented to the clearing house.
1. Enter A/c No, instrument number & amount.
2. Carving N (No).
3. Rejection type O (Outward). Press F6. System shall display instrument
details. Please ensure that presenting bank and branch codes
automatically appear in the field Press Bk/Br Code. Generally, it shall be
same as 9 digit sort code printed on the instrument. If these details are not
automatically displayed by the system, then the user shall invoke menu
option OIQ and inquire about the lodgment of the instrument by entering
zone code, zone date and amount; user shall then note instrument details
and lodge it accordingly.
4. Press F6.
5. Reject Code 1 Press F2 and select the reject reason code by pressing
Shift+F4.
6. Press F4. System shall display outward clearing returned charges and
outward clearing returned postage charges. User can change the
charges if necessary.
7. Press F4 to accept these charges. Press F6. The system shall come
back to lodgment screen of ICTM. User can press down arrow of keyboard
to lodge further instruments.
E. GRANT INSTANT TOD
User can grant instant TOD while lodging the instrument through ICTM.
Before granting TOD, the user shall take formal sanction/permission from
the competent authority.
1. Carving Y (Yes).
2. TOD? Y (Yes).
3. Press Control +E (Explode) in TOD field. Screen equivalent to screen 14

shall appear.
4. System shall display available amount in the account and advance
amount i.e. TOD amount.
5. Expiry date By default system shall display todays date (BOD date).
This is the date on which TOD is going to expire.
6. Penalty date By default system shall display todays date (BOD date).
This is the date from which system shall start charging penal interest on
TOD bring granted.
7. System displays Advance type as S (Single) transaction and Advance
category as C (Clean).
8. Permitted by (mandatory) User shall enter Finacle user ID of the
permitting authority.
9. Remarks (optional) Enter remarks of TOD, if any.
10. Press F4. System shall come back to lodgment screen and move up
the current record.User shall take TOD register from the system before
the Day End; menu option for printing of TOD register is TODRP. The
report/register shall be signed by the competent authority and shall be
preserved in era file.
F. PAY ORDER
1. Account No Type PO.
2. Instrument No Enter running serial number of PO and press F11.
System shall automatically display all the particulars of pay order like
amount, particulars, instrument date etc.
3. Press F6.
4. Ref. Num (mandatory) Enter 9 digit printed number of the pay order,
i.e. first 3 digit alpha and next 6 digit numeric. System shall validate this
number with Hot Items list being updated centrally. Press down arrow
key. The system shall move up the current record.
5. If the pay order is stale or the system comes across any
warning/exception, then it shall display a message Scheme level
warning/exception exists. User shall press up arrow to bring the last
record and press F4. If the pay order is stale, then it shall display
appropriate message. User then shall modify the account number to
3111511 and lodge the pay order.
G. VALIDATION RUN
After lodging the instruments in inward clearing, the authorized official
shall run validation run process before verification of ICTM. The report
generated through validation run process shall be presented to the
incumbent in charge for taking necessary action like returning
instruments, allowing TODs etc. After getting necessary instructions from
the incumbent, the user shall get into modify mode of ICTM and do
necessary changes in the instruments like marking returning, granting
TODs etc.
Menu option MICZ
1. Function V (Validation Run)

2. Zone Enter zone code in the first field. Press F4. Ensure that template
file is displayed automatically by the system as iclg_val.mrt.
3. Press F4.
4. System shall display print parameter acceptance form. Enter F in
Fore/Background and N in print required (if printer is not physically
connected). Press F10.
5. The report generated may be viewed / printed through menu option PR.
6. The report generated shall consist of status each instrument like
insufficient avail balance, chq. Not issued, chq stopped, already carved,
instrument rejected etc. The report shall help the user to take necessary
action like marking instrument as rejected, granting TOD in the account
etc.
7. User then shall do the necessary modification (if necessary) in the
instruments through menu option ICTM using modify function.
H. VERIFICATION OF INWARD CLEARING
After lodging all the instruments and marking returning, granting TODs
etc., the authorized official shall verify the lodging.
Menu option ICTM
1. Function V (Verify)
2. Zone Enter zone code in the first field. Press F4. System shall display
selection criteria as shown in screen 15.
3. User can enter criteria to list the instruments for verification like if he
wishes to list/verify only SF instruments, then he can enter 10 in start tran
code and end tarn code fields. If the user wishes to verify only pay orders,
then enter PO in start and end account fields.
4. Press F4.
5. System shall list all the instruments falling under the criteria entered as
shown in Screen 16.
6. User can select or deselect instrument for verification by pressing
Shift+F4.
7. Press F10 to commit. No financial transactions are passed by the
system. System allows user to modify instrument details even after
verification. In that case, if the zone is in suspended state, then the
suspension has to be revoked, using menu option MICZ & function R
(revoke suspension). Then the user shall invoke ICTM in modify mode,
Enter zone code, press F4, enter Y in Select Verified field and press F4.
I. CHECK ZONE STATISTICS BEFORE SUSPENDING THE ZONE
Before suspending the zone, the authorized official shall check the
statistics of the zone by invoking menu option MICZ.
Menu option MICZ
1. Function I (inquire)
2. Zone Enter zone code in the first field. Press F4.
3. Option S (Statistics). Press F4.
4. System shall display number of instruments lodged, total amount of
instruments etc. on the computer as shown in screen 17.

5. After noting the figures of excess claim, short claim if any and other
figures likes inward reject, outward reject etc., user shall press F4 or F3
key to come back to option field.
6. The official shall check the figures with inward clearing schedule and
the details entered in the current zone like BAR amount, no. of
instruments etc. If necessary, the user shall modify the zone details by
invoking same menu option using modify function or modify instrument
details using menu option ICTM in modify mode.
J. SUSPEND ZONE
After verification of the instruments through ICTM, the authorized official
shall suspend the zone. No further lodgment is allowed in the zone once it
is suspended. If the user wishes to lodge further instruments in
suspended zone, the authorized official shall revoke suspension first
using menu option MICZ.
Menu option MICZ
1. Function S (Suspend)
2. Zone Enter zone code in the first field.
3. Press F4. System shall display zone details and the cursor shall appear
in option field. If BAR amount, no. of instruments etc. is not entered in the
zone, system shall display a message accordingly.
4. User can press F10. Or if the user wishes to enter total amount, no. of
instruments etc. as per the inward clearing schedule, he shall press F3 to
abandon suspension of zone and modify zone details through the same
menu option, using modify function.
K. POST ZONE
After confirming zone statistics and doing necessary modifications
in the zone, user shall post the zone. The zone must be in suspended state
before proceeding for posting the zone. Posting means, the system shall
pass necessary financial transactions. Ensure that ILINKWEB is running in
the background. Before proceeding for posting the zone, the user shall
segregate the instrument that are beyond his passing powers and shall
handover the same to next higher authority for passing the same. The next
higher authority shall invoke ICTM and shall satisfy himself about whether
the instrument is to be passed or not. Accordingly, he shall sign on the
face of the instrument indicating that the instrument is passed.
During posting the zone, system creates transactions like Dr.
Customer/Office accounts and Cr. Sundry Account Consolidated. If the
number of instruments lodged in the zone is 250 or more, system creates
more than one transaction, each transaction having maximum 250 part
trans. System does not check passing powers during posting the zone,
but the user initiating the posting has work class less than the minimum
work class defined for various schemes, the posting of the zone will fail
and the transaction shall accounting in clg. Operation .
1- Account affected in Inward Clearing :At the time of posting zone

Dr. Party account

Cr. < Solid> 3171117

Intermediary account

When Zone is closed

Dr. < Solid> 3171117
Cr. < Solid > 3211201
Cheque return
Cheque Counter return
Excess Claim
Short Claim

Intermediary account
Imprest account
Dr. < Solid > 3211201
Dr. < Solid > 5711320
Dr. < Solid > 5711320
Cr. < Solid> 3171107

Imprest account.
Suspense clg.
Suspense Clg.
Sundries clg.

Note that Imprest account Solid/ 3211201 should be zero after weekly
adjustment every Friday.
Whenever bankers account is maintained , instead of imprest account ,
Balance with RBI/ SBI (
) code is to be given in place of
Imprest a/c.
Menu option MICZ
1. Function P (Post)
2. Zone Enter zone code in the first field. Press F4. The cursor shall
appear in option field. The official shall ensure that validation status is V
COMPLETE.
3. Option Press F10.
4. Please wait until the progress indicator turns back to green. (Note System shall not allow the user to press F10 if inward clearing schedule
details are entered in BAR number/date, Tot inst BAR , Tot amt BAR
fields.)
5. System shall display the status of transaction like whether the
transaction posting is failed or otherwise. Please note the transaction Id.
6. If the posting of transaction is failed, the user shall invoke menu option
TM in modify mode and post all the part trans.
7. While posting the transaction in TM, user may find that some of the part
trans are in verified state. System shall not post/verify part Trans while
posting the zone if comes across any warning/exception/errors. User shall
individually post all such un posted part trans (within his passing powers).
User shall check that after pressing F10 in TM, the number of credit and
debit entries in entered state shall be equal to number of credit & debit
entries in posted state.
L. CLOSE ZONE
Please note that all the inward clearing zones opened on todays date
(BOD date) must be closed on the same day; otherwise system shall not
allow the DBA to do the Day End.
Before initiating the closing of zone, please ensure that the all the part
trans initiated during posting the zone are posted. ILINKWEB shall be

running in the background.

Menu option MICZ
1. Function Z (Close)
2. Zone Enter zone code in the first field. Press F4. The cursor shall
appear in option field.
3. Option Press F10. Please wait until the progress indicator turns back
to green. This process shall debit sundry consolidated account and credit
clearing imprest account.
The user shall check ledger of sundry consolidated account
(3171117) for transaction and can also press Control +E (Explode) to see
other part tran details. The system shall create transactions of debit to the
accounts in which instruments have been returned (provided that the
charges are accepted during lodging the instruments), with the inward
clearing reject charges. System may not post the transactions in account
of customers with the inward clearing reject charges if the balance in the
account if sufficient balance is not available in the account.
The user can print all the vouchers like clearing imprest, sundry
consolidated account, suspense clearing, sundry clearing, customers
account debit and inward clearing reject charges etc. from the system,
either by using menu option VCHR or TM in modify mode and sub option Z
in specify option field.