Paying Operations
Content
Paying Operations
The bank can discharge successfully such responsibility under the following conditions:
a. Protection of deposits through wise loans and investments
b. Meeting depositors’ claims immediately and upon demand
c. To yield dividends to their stockholders and increase the bank’s surplus account
Why a bank maintains cash in its vault?
To enable it to honor the withdrawal requests of its customers.
Primary Duty of a Paying Teller
To take charge of the cash of the bank and pay it out over his counter.
Determines the amount of cash to be taken from the vault of his cage.
Arranges the money he takes to his cage so that they may be handled very conveniently.
To see that there is a sufficient supply of cash in the bank to meet all normal requirements.
Distinction between Paying and Cashing Checks
Pay- to mean the exchange of cash for a check drawn on the bank
-
To designate cash as referring to the advance of money on a check that must be collected
from another bank
10 important points a paying teller should remember before paying a check:
1. There must be sufficient collected balance
2. Check must not be altered
3. Authentic and genuine signature
4. Words and figures must tally
5. Check must neither be post-dated or stale
6. There must be no attachment on the check
7. Stop-payment order
8. Checks should be properly endorsed
9. Proper identification
10.Crossed Checks
Temporary Overdrawing/Overdraft
Temporary overdrawing against current accounts shall not be allowed, unless caused by
normal charges and other fees incidental to handling such accounts, which in no case shall
exceed two hundred (200.00). Banks which violate these regulations shall be subject to fine of
one tenth of one percent per day of violation, computed on the basis of the amount of
overdrawing, without prejudice to the provisions of Sec. 34 and 34-A of Republic Act No. 265, as
amended.
The items to be used as cover for the honored checks should only consist of any of the following:
a.
b.
c.
d.
e.
f.
g.
Cash
Cashier’s, Manager’s or certified checks
Bank drafts
Postal money order
Treasury warrants
Duly funded “on us” checks
Fund transfers/credit memos within the same bank representing proceeds of loans granted
under existing regulations
The bank can discharge successfully such responsibility under the following conditions:
a. Protection of deposits through wise loans and investments
b. Meeting depositors’ claims immediately and upon demand
c. To yield dividends to their stockholders and increase the bank’s surplus account
Why a bank maintains cash in its vault?
To enable it to honor the withdrawal requests of its customers.
Primary Duty of a Paying Teller
To take charge of the cash of the bank and pay it out over his counter.
Determines the amount of cash to be taken from the vault of his cage.
Arranges the money he takes to his cage so that they may be handled very conveniently.
To see that there is a sufficient supply of cash in the bank to meet all normal requirements.
Distinction between Paying and Cashing Checks
Pay- to mean the exchange of cash for a check drawn on the bank
-
To designate cash as referring to the advance of money on a check that must be collected
from another bank
10 important points a paying teller should remember before paying a check:
1. There must be sufficient collected balance
2. Check must not be altered
3. Authentic and genuine signature
4. Words and figures must tally
5. Check must neither be post-dated or stale
6. There must be no attachment on the check
7. Stop-payment order
8. Checks should be properly endorsed
9. Proper identification
10.Crossed Checks
Temporary Overdrawing/Overdraft
Temporary overdrawing against current accounts shall not be allowed, unless caused by
normal charges and other fees incidental to handling such accounts, which in no case shall
exceed two hundred (200.00). Banks which violate these regulations shall be subject to fine of
one tenth of one percent per day of violation, computed on the basis of the amount of
overdrawing, without prejudice to the provisions of Sec. 34 and 34-A of Republic Act No. 265, as
amended.
The items to be used as cover for the honored checks should only consist of any of the following:
a.
b.
c.
d.
e.
f.
g.
Cash
Cashier’s, Manager’s or certified checks
Bank drafts
Postal money order
Treasury warrants
Duly funded “on us” checks
Fund transfers/credit memos within the same bank representing proceeds of loans granted
under existing regulations
