UNIVERSTY OF KARACHIKARACHI UNIVERSITY BUSINESS
SCHOOL
MBA Banking & Finance 2014
Semester II
ABOUT ASKARI BANKAskari Bank Ltd (formerly Askari Commercial Bank) is a commercial and retail bank in Pakistan It was founded on October 9, 1991, as a Public Limited Company. On June 21, 2013 the bank was acquired by Fauji Group. It is a branch of Army welfare organization. (AWT). The Bank is listed on the Karachi, Lahore & Islamabad Stock Exchanges
ABOUT ASKARI BANKAskari Bank has expanded into a nationwide presence of almost 250 Branches, and an Offshore Banking Unit in Bahrain. A shared network of over 3000 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. As on December 31, 2013, the Bank had equity of Rs. 9 billion.
The transfer of fund from a branch of bank to the
other bank on which the instrument is drawn,
without involving cash through “state bank’s
clearing house”.
Inward clearing Outward clearing
Inward clearing Outward clearing
“Inward clearing means cheques received by
the bank from other bank”
“Inward clearing means cheques received by
the bank from other bank”
The inward clearing process decreases the deposits of the bank.
The main operational task done by the banks were: Validation of customer account with the “CORE
BANKING SYSTEM”(CBU). Searching the physical instrument or return in. Archival of all the physical instrument.
The inward clearing process decreases the deposits of the bank.
The main operational task done by the banks were: Validation of customer account with the “CORE
BANKING SYSTEM”(CBU). Searching the physical instrument or return in. Archival of all the physical instrument.
“Outward clearing means cheques sent for
collection”
“Outward clearing means cheques sent for
collection”
“The cheque of other bank, which the
account holder deposit in their account”
Outward clearing increases the deposits of the bank.
“The cheque of other bank, which the
account holder deposit in their account”
Outward clearing increases the deposits of the bank.
LOCAL CHEQUE CLEARING
• (within the same geographical/clearing zone) INTERCITY CHEQUE CLEARING
• (drawn on a bank outside the local clearing zone)FOREIGN CHEQUE CLEARING
• (drawn on a bank/location outside the country of the collecting bank)
LOCAL CHEQUE CLEARING
• (within the same geographical/clearing zone) INTERCITY CHEQUE CLEARING
• (drawn on a bank outside the local clearing zone)FOREIGN CHEQUE CLEARING
• (drawn on a bank/location outside the country of the collecting bank)
When we receive inward clearing we have to
debit our customer account and when we receive
outward clearing we have to send it to relevant
bank for payment.
For example:
A cheque drawn on “HBL” deposited in “MCB” bank is an
outward cheque for “MCB” & is an inward for “HBL”
When we receive inward clearing we have to
debit our customer account and when we receive
outward clearing we have to send it to relevant
bank for payment.
For example:
A cheque drawn on “HBL” deposited in “MCB” bank is an
outward cheque for “MCB” & is an inward for “HBL”
In inward we are the
paying banks
in outward we are the
collecting banks on behalf
of the customers & will
launch the instrument in
clearing
ChequesDemand draft Pay order Travelers cheques
ChequesDemand draft Pay order Travelers cheques
NIFT - National Institutional Facilitation Technologies
(Pvt.). Ltd. was incorporated in September 1995 as joint
venture between a consortium of six banks and
entrepreneurs from the private sector. All commercial
banks and all of their branches in major cities avail
NIFT's services. As of January 2014, 38
commercial banks and their 8382 branches in 273 major
cities, and towns utilize NIFT's services through
28 Data Centers.
NIFT commenced its ACH(automated clearing house)operations in 1996, after signing an agreement with THE STATE BANK OF PAKISTAN.
ACH is computer based clearing & settlement facility for interchange of electronic debits & credit among Financial Institution.
OVERNTGHT CLEARING
• overnight clearing included return cheques processing (24 hour clearing cycle)
SAME DAY / HIGH VALUE CLEARING
• Same day/high value clearing included return cheque processing(3 hour clearing cycle)
OVERNTGHT CLEARING
• overnight clearing included return cheques processing (24 hour clearing cycle)
SAME DAY / HIGH VALUE CLEARING
• Same day/high value clearing included return cheque processing(3 hour clearing cycle)
MICR (magnetic ink character recognition) is a technology used to verify the legitimacy or originality of paper documents, especially checks. Special ink, which is sensitive to magnetic fields, is used in the printing of certain characters on the original documents.
Crossing stamps Clearing stampsDate(which should be current)Endorsement stamp on back sideAmount in figures & words should be matchedSignature verificationTransfer Stamp
Crossing stamps Clearing stampsDate(which should be current)Endorsement stamp on back sideAmount in figures & words should be matchedSignature verificationTransfer Stamp
NORMAL CLEARING CYCLE
SAME DAY CLEARING CYCLE
SPECIAL CLEARING CYCLE
INTERCITY CLEARING CYCLE
Central repositorySound management Cuts costShorter cycleSaves employees effortNo loss of cashConvenient
Central repositorySound management Cuts costShorter cycleSaves employees effortNo loss of cashConvenient
Short cycle Responsive Safety Simplicity
Short cycle Responsive Safety Simplicity