Savings Account System

• Theory
  Banks are involved in different types of activities. We can categories them in to Accepting Deposit and Lending Loans. The normal procedure is to collect deposits from depositors by giving some interest to them and using the same money to give loans with higher interest rates. The margin money collected from this is used for the functioning of the bank.
• The money accepted from customers is of different types.
• Deposits against bonds, debentures, shares.
• Fixed deposits, Cash certificates ( Odd amount to round amount )
• Recurring deposits, Annually deposit ( On fixed amount - every month pension )
• Day to day deposits - Current account & Savings account, Cash credit account etc.

Savings Bank Account - Activities

Opening an account - Minor / Major - Nomination - Joint Holdes - Introducer.
Different transactions against the account : Payments Withdrawals Transfer
Cheque Clearance - Clearing office
Interest calculation
Standing Instructions
Charges against the account
Freezing the account - Inoperative account
Closing the account

• When the account holder (by submitting the duly filled application form) opens a new account, the entry is made in the ledger book (Separate page for each account). Bank gives unique account number to the account holder. Each bank - branch is maintaining its own unique serial number.
• The account opening form consists of customer details, occupation, age, major / minor, joint holder details, nomination details with specimen signature.
• Customer can involve himself into paying and withdrawal transactions. Both paying and withdrawal transactions can be possible with cash or cheque. For withdrawals "Withdrawal Slip" and for paying "Paying slip" is used to specify the details of the transaction.
• Interest Calculation :- Calculation of products for each month considering the minimum balance after 10th of the particular month. 5 Rs. = 1 product. Deposit the interest amount depending upon the policy i.e. quarterly or half yearly.

Scope

• Customer furnishes all the details along with the application form and asks for the new account in the bank.
• Bank scrutinizes the form and creates new account with unique account number. (Cross checking the details of the introducer)
• There is separate page for each account in the ledger. On the basis of opening form they filled the necessary details in their ledger book.
• If customer wants to deposit, he fills the deposit slip and submits it to the cashier along with the demand draft or cheque or cash. The cashier rechecks this and at the end of the day the statement of the same is prepared. The cleared cheques and cash transactions are posted to the corresponding ledger account and balance updated.
• If customer wants to withdraw, then he fills the withdraw slip. The clerk first checks the account number and then the necessary credit balance. Then he issues the token to the customer. The officer after checking endorses the slip and passes the slip to the cashier. Cashier pays the cash to the account holder after accepting the given specific token number from the account holder. The cashier also made entry for cash given in his book.
• Clearing office clears the cheques against deposit and withdrawal transactions.
• Transfer from saving to FD/MT/DD or form these sources to savings.
• Interest calculation :- December, March, June, September. - Products
• Standing Instructions
• Cheque Book Issue
• Duplicate pass book
• Minor to Major
• Charges against the account
• Freezing the account
• Inoperative account :- Inoperative accounts are those who don't have any transaction for last two years.
• Account gets closed when the customer demands for it and the total amount on his account will be issued to him. At that time if the customer has provided chequebook facility then some are charges are deducted while closing the account.

Practical Hints
Batch Processing System
3 Servers : Main Server, Backup Server, Local Server.
Head office to Branch - Main Server - Batch Processing
Branch Main Server to Local Server - Batch Processing
Local Server to stand alone PCs - Online Processing.
Local to backup server.
In addition UPS.

Refer Context Level, FDD & ERD.

1st level DFD Processes
1. Maintain masters - Parameters from RBI - Operator profiles
2. Receive Applications Scrutinize the application and create account
3. Record Deposit and withdrawal transactions
4. Interest calculation
5. Record other transactions - Transfer, Charges, Cheque book issue, Account freeze, inoperative account, standing instructions etc
6. Account closure
7. Generate reports.

List of Files
Account Holder Account Master
Application form Joint Holder
Stop payment Cheque book issue
Deposits Transaction Withdrawals Transaction
Transfer transaction Duplicate passbook issue transaction
Operation Master Cheque clearance transaction
Interest Transaction Service charge transaction

Important files
Account Master
Account No
Opening date
Current balance
Freez details Account Type
Account status
Min balance
joint code (FK) Holder code (FK)
Guardian Name
Guardian Addr
Operation Code(FK) Nominee Name
Nominee Addr
Introducer A/C No
cheque book status

Transaction (One can have separate deposit transaction and withdrawal transaction)
Tran No.
Tran Date
passing flag Account No (FK)
Tran Tye
Tran Mode DD/Ch No
DD /Ch Date
Authority flag Bank details
Clearance details

List of Reports & Outputs
Passbook
Monthly account transaction summery statement
Yearly interest statement
Account wise standing instructions.
Stop payments report
Daily / Weekly inoperative accounts
Daily / Weekly Freeze accounts
Daily / Account wise service charge report
Cheque book issue report
Bounce cheques reports
Daily deposits / Daily withdrawals
Duplicate passbook issues
Minor to major
Check lists for current a/c and savings account
Daily newly opened accounts
Account category wise reports - joint / E or S / trust / Institutions etc.

Layout
Account Opening Form

Explain location transparency, Authorization, Initials for each transaction. Security levels in banks (strong rooms, watchmen, passwords, alarms and indicators, daily backup to some remote place)