Banking Operations and Branch Management
What the exam tests
This domain tests whether you can run a branch by documented authority rather than personal convenience. Expect cash management, clearing, account opening, locker operations, delegated authority, customer complaints and branch-level reporting.
Core rules and controls
- The branch manager owns overall control but must preserve maker-checker separation. Cash, vault keys, cheque books and security stationery remain under dual custody, supported by a key register and handover log.
- Respect the cash retention limit set by the board or regional office. Excess cash is remitted under armed escort and insured in transit.
- Authorise transactions only within delegated limits; higher-value payments need higher sanction. Never share passwords or leave a CBS session open.
- Record every locker visit, verify the signature and maintain a visit register. Complaints must be logged, acknowledged and resolved within the bank's timeline.
- At close, tally physical cash, ATM balances, clearing instruments and suspense entries before certifying the day book.
Worked example
A cashier's physical cash is ₹12,45,000 against a book balance of ₹12,40,000. The excess is not income. Recount the bundle, check unposted receipts, ATM replenishment and clearing returns; if still unexplained, record it in the cash difference register and report to the manager. Do not adjust the ledger without approval or evidence.
Traps that cost marks
Common errors are netting a shortage against an excess, treating a cash difference as miscellaneous income, allowing one officer to both initiate and authorise a payment, and accepting a signature without verifying the account mandate.