CLEARING OPERATION

OUTWARD CLEARING :

In Finacle all cheques sent to clearing house are sent after opening a zone
each day and entering all the cheques under that zone .
All cheques are lodged by opening a Zone of specific latency period each
day.
ZONE CODE : It is a predefined code for making enteries of the cheques .
It is defined by the Data center. Some other parameter i.e. latancy period
etc is defined. Branches are advised to choose appropriate zone code for
day to day operation of the branch.
We can open a zone beyond the date of BOD date and enter the cheque
also.

Latency Period -
The number of days from the date of opening after which the system
would allow to release the zone to shadow balance i.e. day when cheque amount
credited to customers account. Shadow balance reflects the amount which has
been credited in the account but can not be withdrawn since it is under clearing
.

FLOW CHART OF OUTWARD CLEARING

Steps and menus to be used

Step Menu Option Function
1- Open Zone MCLZOH O
2- Lodge Cheques OCTM A
3- Verification OCTM V
4- Reports Generation PCLSO and PNBRPT
5- Suspend Zone MCLZOH S
6- Revoke Suspended Zone MCLZOH V
7- Release Of Cheques to Shadow Balance MCLZOH R
8- Regularise Zone MCLZOH G
9- Mark Pending cheques not to
Be regularized MARKPEND
10- Revoke Cheques marked pending
Earlier REVPEND
11- Transfer of sets from a Zone to another TROFSETS
12- Inquiry of clearing sets ICLS
13- Inquiry on shadow balance ACSBIO

A. OPEN ZONE
Before lodging the instruments, the concerned clearing incharge or any such
official has to open the Zone using menu option MCLZOH.
Menu option MCLZOH
1. Function O (Open). Or user can press F2 for the list and select O (Open
Zone) function by pressing Shift+F4.
2. Zone In the first field, enter the date in which user wishes to open the zone.
(Zone can be opened in future dates too.) In the second field, enter the Zone
Code in which user wishes to lodge the instruments or user can select zone
code from the list. Different zone codes have been created at the Data Centre
for different purposes like MICR, High Value, Inter bank, LDD etc. Zone codes
starting with EC are created for Extension Counters. Some zones codes are
created for Non-MICR instruments. Latency period means the number of days
taken to release the zone to shadow balance from the date of opening the
zone i.e. the balance credited in the account but can not be withdrawn as it is
under clearing (Unclear Balance). E.g. one day latency means if the zone is
opened on 17.06.2009, then it shall be released to shadow balance on
18.06.2009 (if its a working day). Press F4. If the zone is already in opened
state, system shall display the message Record already exists.
3. System shall display the zone details as per the zone code. System shall
display the Transaction ID for the zone, which may be noted for further
references.
4. Press F10 to commit. Once the zone is opened, users can lodge instruments in
the zone.
LODGEMENT OF INSTRUMENT
There may be 3 type of cases :
1- Single Instrument with Single account number to be credited.
2- Multiple Instrument with Single account number to be credited.
3- Single Instrument with Multiple account number to be credited .

Let us take case wise lodgement of instruments .

Single Instrument with Single account number to be credited
Give date &name of the zone. Press F4 . A set number is generated. Note
set no. on the face of voucher.
Put account number press<TAB>Put amount press F6
Put instrument number press tab key.
Put sort code from the instrument i.e. combination of Bank code & Branch
code. Press tab. For LDD zone bank code is always024 and sort code give
branch distinctive number.
Amount is already populated there, press F2 & select appropriate code.
(but this is optional)
Press down arrow key.
Check if credit amount & instrument amount same.
Press F10 & go to another set. Continue the process till all instruments are
lodged.
Multiple Instruments with Single account number to be credited
Give date & name of the zone. Press F4 . A set number is generated. Note
set no. on the face of voucher.
Put account number press<TAB>Put amount press F6
Put instrument number press tab key.
Put sort code from the instrument i.e. combination of Bank code & Branch
code Press tab. Put amount of instrument by altering the amount shown
on the field ; Press down arrow key . Enter instrument number . Press tab
sort code , amount of the instrument as before continue with down arrow
.If there are further cheques until all cheques are entered. Check if credit
amount and instrument amount are same .
Press F10 & go to another set. Continue the process till all instruments are
lodged.

Single Instrument with Multiple account number to be credited
Give date & name of the zone. Press F4 . A set number is generated. Note
set no. on the face of voucher.
Put account number press<TAB>
Put amount press down arrow will come to account number . Repeat as
above and continue until account number are entered . Press F6 .
Put instrument number press tab key.
Put sort key from the instrument i.e. combination of bank code and branch
code . Press tab.
Put amount press down arrow key.
Check if credit amount and instrument amount is same. Press F10.
After all cheques have been lodged.
Invoke menu MCLZOH function I , Give zone name and date and press F4
and F6 Twice . Total value of cheques , number of instrument and voucher
will be shown . Prepare the imprest voucher accordingly.
Procedure For Modification / Deletion of sets before releasing Zone to
shadow balance
The system has a provision to modify/delete details in sets (like a/c no,
amount, inst. No, inst amount, sort code etc) which have been already
verified. This should be done before releasing the zone to shadow
balance.
Following process shall be followed very meticulously

We will discuss this process through an example. There are set num
1 to 4 in the zone MICR-04 opened in 17.06.2009 date. All the sets are in
verified state. User needs to modify details in set number 3 & 4.

1. If the zone is in suspended state, then the user has to revoke
suspension Menu option - MCLZOH function V (Revoke Suspension).
In our example zone is MICR-04 dated 17.06.2009.
2. Open a similar zone in future date
Menu option - MCLZOH function O (Open Zone).
In our example MICR-04 dated 18.06.2009 (say its a working day). This
may not be necessary if any equivalent zone is in open state in todays
date.
3. Transfer those sets which need modification/deletion, from one zone to
other.
Menu option - MCLZOH function T (Transfer Sets) or TROFSETS
(Transfer of Sets).
In our example, we need to enter date as 17.06.2009 and zone code as
MICR-04.
Press F4. The system shall display the screen .
Enter the set numbers in set num ranging from and to fields. Under
Transfer to Zone section, enter zone date and zone code to which the sets
are to be transferred. In our example values are 18.06.2009 & MICR-04
respectively. Press F10. The system shall bring a new screen and shall
display old set numbers (in our example 3 & 4) and new set numbers
allotted by it after transferring the sets to the other zone. Please note old
and new set numbers.
4. Retransfer the sets back to todays zone.
Menu option MCLZOH function T or TROFSETS.
In our example, we need to enter date as 18.06.2009and zone code as
MICR-04. Press F4. Enter new set numbers as allotted by the system
earlier, in set num ranging from and to. Under Transfer to Zone section,
enter zone date and zone code to which the sets are to be transferred. In
our example values are 17.06.2009 & MICR-04 respectively.
Press F10.
The system shall bring a new screen and shall display old set
numbers and new set numbers allotted by it after transferring the sets
back to todays zone. Please note new set numbers.
5. The sets are brought back to todays date in entered state.
Modify/delete set details as per requirement using menu option OCTM. If
the set details are modified, the same have to be got verified by other
authorized user.
INQUIRIES AND REPORTS
a. Menu option OIQ (Outward Clearing Instruments Inquiry)

Example 1 - Customer inquires about the fate/status of his instruments
sent in local clearing. In our example, we will assume that the customer
provides limited information like the date on which he has presented the
instrument and his account number. User may enter date of clearing in
Outward Clearing Zone Date (2nd from top) and customers A/c No. in the
last field.
Press F4. The system shall all the records fitting in the criteria entered by
user. User can press Control +E (Explode) on a record to know status (last
field in the screen) of the instrument. If the customer knows instrument num
and bank, the user shall enter respective values in Instrument Id and Bank
code fields and press F4 to get result.
Example 2 One of the banks did not participate in the clearing and the user
wants to know all the zones through which instruments have been sent to the
bank, so that those instruments can be marked as pending before
regularizing the zones.
In menu option OIQ, user needs to enter values in Outward Clearing zone
Date and Bank Code. Press F4. Note the zone codes. Use menu option
MARKPEND to mark pending the instrument as per the zone details noted.
Alternatively, user can use menu option OPQ (Outward Clg Part Tran Inquiry)
for inquiring status of instruments sent in outward clearing.
b. Menu option REJ REP (Rejected Instruments Report/Advice)
This menu option may be used to send advices to the customers who have
Presented instruments in Outward Clearing and are returned unpaid.

1. Report To (mandatory) Free text field. E.g. enter Manager
2. Start Date (mandatory) Enter the date as per requirement. Generally date of
Opening of outward clearing zone.
3. End Date (mandatory) Enter end date as per requirement. Generally date of
Opening of outward clearing zone.
4. Zone Sol ID By default users sol id appears in this field.
5. Clg type Enter O for printing outward reject advices
6. Zone Date/Code (mandatory) Enter zone date and zone code in respective
Fields.
7. Print Reqd Enter A (Advices). Press F4. System shall activate print
parameter
Acceptance form.
8. Fore/Background Enter F. Print Required Enter N (if printer is not attached
to
PC). Press F10. System shall generate a report. Please wait until the progress
indicator turns back to green.
9. View/print the report through menu option PR.
This menu option can also be used to generate summary of returned
instruments;
user shall enter R in Print Reqd field. Enter B in Print Reqd field if both advices
and summary are to be printed.
c. Menu option PNBRPT
All the daily reports of outward clearing can be generated through menu option
PNBRPT.
Lets take an example. User wishes to generate outward clearing register for a
zone.
1. Type PNBREP in menu option field and press enter key.
2. Main Menu shall appear on the screen.
3. Ensure that the cursor is blinking in the field available at the bottom of the
Main
Menu list, if not, user shall click left button of mouse in the field. Type 12 (i.e.
Clearing). Press F4.
4. Various reports applicable for clearing are listed in the submenu.
5. User shall see which report is to be generated and enter its sl.no in the field
and press F4. In our example, as the user wishes to generate outward clearing
register for a zone, he shall enter 2 in the field and press F4.
6. System may require some input values from the user. After entering the
required values, user shall press F4.
In our example, system shall ask service outlet code, the user shall enter six
digit service outlet code, say 417700 and press F4. System then shall ask
date(dd/mm/yyyy), user shall enter the date in the same format as the system
has displayed. In our example, say 17/06/2009 and press F4. System then
shall ask zone code. In our example say MICR-04 and press F4.
7. After accepting all the required values, system shall start the process of
generating the report. Please wait until the progress indicator turns back to
green.
8. Once the report is generated, the progress indicator shall turn to green.
9. User can type QQ and press F4 to quit from PNBRPT menu option.
(Alternatively, he can type Q and press F4 to go back to main menu. If user
wishes to quit from main menu as well, then he shall type Q and press F4. The
system shall come out of PNBRPT.)
10. Please view/print the through menu option PR.
GUIDELINES FOR EXTENSION COUNTERS
1. The procedure as discussed above for outward clearing is same for extension
counters.
2. Extension counters shall use zone codes starting with EC for lodging outward
clearing instruments.
3. As per the setup of zones starting with EC, system shall credit customers
account to the debit of Imprest A/c Parent Branch.
4. While marking outward reject through inward clearing, system shall debit
customers account to the credit of Imprest A/c Parent Branch.
5. The parent branch, on receipt of outward clearing instruments from Extension
counters, shall credit Imprest Accounts of respective extension counters and
credit Imprest Account of RCC/Clearing House through menu option TM. The
branch shall mention ECs name in particulars field of credit part tran. To
distinguish the transaction from others.
6. On receipt of outward rejects instruments, the parent branch shall debit
imprest account of respective extension counters and credit imprest account of
RCC/Clearing House and then send instruments to EC.
7. EC shall lodging outward reject, EC shall open Non-MICR inward clearing
zone starting/prefixed by EC.

Accounting in Clearing Operation
Account affected in Outward Clearing
On the day of release to shadow balance .

Dr. <Solid>3211201 Imprest account
Cr. Party account

IF MEMBER BANK DOES NOT PARTICAPATE IN THE CLEARING HOUSE
There are two scene .
1- Information received before Zone is released to shadow balance.
In this case set pertaining to that branch / Bank is transferred to a new
Zonewhich is opened for next day. To do the task invoke menu -- MCLZOH
with option T. This can also be done by Menu TROFSETS. This action also
needs verification.
2- Information received after Zone is released to shadow balance.
In this case instruments pertaining to branch/ Bank should be marked
pending. Menu option is MARKPEND. On the regularization of Zone,
instruments which are not marked pending will be cleared and status of the
Zone remain Partially regularized.
On clearance, Invoke menu REVPEND to revoke status of mark pending
instrument. Run regularization process by menu: MCLZOH with option G.