1. INTERNAL PROCESS PROCEDURES
Rural Bankers Association of the Philippines
& Micro enterprise Access to Banking Services
G-CASH CASH-IN/CASH-OUT (CICO) Service Training
INTERNAL PROCESS PROCEDURES
RBAP Confidential and Proprietary
CONFIDENTIAL

2. TRAINING FRAMEWORK
G-Cash 101
CICO
TAP &
TAD

3. RBAP Confidential and Proprietary
Objectives
To provide the requirements for the bank’s personnel and customers in cashing-in and cashing out G-Cash value to/from the recipient/sender’s mobile phone, emphasizing on the “KYC” rule;
To provide detailed policy and procedure for the bank’s personnel to follow in accepting G-Cash transactions;
To provide detailed roles and responsibilities of bank personnel before;
To provide detailed procedures of securing G-Cash transactions through menu-driven interface.
RBAP Confidential and Proprietary
CONFIDENTIAL

4. RBAP Confidential and Proprietary
Topics
Pre-requisites
Security and Internal Control
Customer Verification Requirement
Procedures:
Cash-in
Cash-out
Posting/Recording
Consolidation
Settlement
Reconciliation
RBAP Confidential and Proprietary
CONFIDENTIAL

5. RBAP Confidential and Proprietary
Pre-requisite
In order for the client to avail of the CICO service through the Rural Banks:
The client should have a cellphone with active Globe or Touch Mobile SIM;
The client needs to register with Globe G-Cash or G-Cash account is already activated.
RBAP Confidential and Proprietary
CONFIDENTIAL

6. Security and Internal Control
The custodian of the mobile phone must be an officer of the bank (Cashier/Manager/any Designated Officer of the Bank)
M-PIN (Mobile Personal ID No.) and security code of the mobile phone must be secured and should not be known to anyone other than the designated custodian of the mobile phone.
It is required that G-Cash Menu-Driven Interface must be used. To access Menu-Driven Interface in your cellphone, go to Globe Services (Globe Svcs+) then click on myFavorites>G-Cash
RBAP Confidential and Proprietary
CONFIDENTIAL

7. Security and Internal Control
The bank’s mobile phone must be used only for purely G-Cash related activities.
Branch’s Mobile Phone Phonebook/SIM must contain Head Office’s Cellphone Number ( digit Head Office Cellphone Number)
Phone-to-Phone (P2P) Fund Transfer transactions must be supported by receipts and recordings in the Logsheet and/or G-Cash Journal
Any internal/security control violations should not be tolerated and must be reported immediately for proper action (Please see information security policy manual).
RBAP Confidential and Proprietary

8. Customer Identification Requirement
KYC
“Know Your Customer”
RBAP Confidential and Proprietary

9. Customer Identification Requirement - “KYC”
Republic Act No. 9160
Anti-Money Laundering Act of 2001
“Money laundering is an act or series of acts whereby proceeds of an unlawful activity, whether cash, property or other assets, are converted, concealed or disguised to make them appear to have originated from legitimate sources. One way of laundering money is thorough the financial system.”
RBAP Confidential and Proprietary

10. Customer Identification Requirement - “KYC”
Covered Institutions (Rural Bank) shall:
Establish and record the true identity of their clients based on official documents;
In case of individual clients, maintain a system of verifying the true identity of their clients;
In case of corporate clients, require a system verifying their legal existence and organizational structure, as well as the authority and identification of all persons purporting to act in their behalf;
Establish appropriate systems and methods based on internationally compliant standards and adequate internal controls for verifying and recording the true and full identity of their customers.
RBAP Confidential and Proprietary
PROCESS FLOW

11. Cash-in Procedure (Client)
Clients (existing or walk-in) must accomplish the G-Cash Service Form;
Client must submit valid ID for Bank’s verification;
If not G-Cash registered, must register “OTA”
NOTE: If client is not able to provide the appropriate documentation as required, the transaction will not be processed and the client will be informed about the required information that needs to be complied with. All documents submitted by the client will be returned except the filled-up G-Cash Service form. The bank shall keep this form for future reference.
RBAP Confidential and Proprietary
CONFIDENTIAL

12. Cash-in Procedure (Client)
Client pays the cash equivalent of the cash-in amount and the corresponding cash-in fee;
Client waits for the confirmation message as the cashier completes the P2P transaction to the client’s mobile phone;
Client checks on correctness of the amount transferred to his mobile phone.
RBAP Confidential and Proprietary
CONFIDENTIAL

13. Cash-in Procedure (Bank)
The bank teller (or any personnel designated to handle G-Cash transactions e.g. new accounts clerk) must use the G-Cash Service Form in all Cash-in transactions;
The teller checks the completeness of the G-Cash Service Form, and further performs verification procedure based on the accomplished form and ID(s);
The teller receives cash payment from the client, posts and validates the transaction;
NOTE: If client is unregistered, the bank personnel shall advise the non-registered Globe and TM subscriber to register using the G-Cash menu driven interface;
RBAP Confidential and Proprietary
CONFIDENTIAL

14. Cash-in Procedure (Bank)
4) The teller forwards the copies of validated documents to the cashier for the P2P transactions, making reference to the information on provided by the client in the G-Cash Service Form;
Cash-in Procedure (Bank)
Options
Send G-Cash
Cash Out
Balance
Last Txn
Using G-Cash menu, find the Send G-Cash option and Click it.
123
MPIN?
Enter 4-digit MPIN of the bank branch and Click OK.
123
MPIN?
****
You will see masked characters represented by asterisks (*)
RBAP Confidential and Proprietary
CONFIDENTIAL

15. Cash-in Procedure (Bank)
123
Enter 11 digit
Mobile #:
abc
Amount?
Enter the AMOUNT of G-Cash Value equivalent to the Cash-in amount
1000
The bank will receive a confirmation message The client who receives the G-Cash transfer will also receive a confirmation message with the same Reference Number
You have sent 1, of G-Cash to ABC Rural Bank, Inc. on 03/14/05 09:21AM. Your new balance is Ref. no
Enter 11-digit Mobile Phone Number of the client and Click OK.
RBAP Confidential and Proprietary
CONFIDENTIAL

16. Cash-in Procedure (Bank)
5) The teller shall collect service fee on top of the Cash–in amount received, and only CASH shall be accepted for the cash-in amount and service fee;
6) Acknowledgement receipt equivalent to the amount sent shall be issued by the teller to the client to document the transaction;
7) An official receipt shall be issued by the teller to the client for the service fee paid by latter;
8) The teller should ensure that the bank keeps the original copy of the G-Cash Service Form, copy of the client’s ID and the acknowledgement receipt. Transaction trace number shall be indicated in the G-Cash Service Form;
RBAP Confidential and Proprietary
PROCESS FLOW

17. RBAP Confidential and Proprietary
Cash-out Service
Cash-out transaction means deducting G-Cash Value from the client’s mobile phone in exchange of cash, credit to account, payment of loans or payment of other services and transactions of the bank
RBAP Confidential and Proprietary

18. Cash-out Procedure (Client)
Clients (existing or walk-in) must accomplish the G-Cash Service Form;
Client must submit valid ID for Bank’s verification;
NOTE: If client cannot provide the appropriate documentation as required, the transaction will not be processed and the client will be informed about the requirement that needs to be complied with. All documents submitted by the client will be returned except the filled-up G-Cash Service form. The bank shall keep this form for future reference.
RBAP Confidential and Proprietary

19. Cash-out Procedure (Client)
Upon instruction of the bank cashier, the client performs P2P to effect the transfer of electronic cash to the bank;
Client verifies the correctness of the transaction via the confirmation message;
The client also pays the corresponding cash-out fee to the bank;
RBAP Confidential and Proprietary

20. Cash-out Procedure (Bank)
The bank teller (or any personnel designated to handle G-Cash transactions e.g. new accounts clerk) must use the G-Cash Service Form in all Cash-out transactions;
The teller checks the completeness of the G-Cash Service Form, and further performs verification procedure based on the accomplished form and ID(s);
The teller post and validates the transaction;
The teller shall collect service fee equivalent to 1% of the Cash–out amount received, and only CASH shall be accepted for the service fee.
RBAP Confidential and Proprietary
CONFIDENTIAL

21. Cash-out Procedure (Bank)
5) The teller shall forward the completed G-Cash Service Form together with ID(s) to the cashier;
6) The cashier shall give the G-Cash mobile phone number of the bank to the client and instruct the client to perform P2P using the G-Cash menu driven interface;
123
MPIN?
****
MPIN and you will see a masked characters represented by an asterisk (*)
Options
Send G-Cash
Cash Out
Balance
Last Txn
for Send G-Cash Click it.
123
MPIN?
Enter 4-digit MPIN and Click OK.
RBAP Confidential and Proprietary
CONFIDENTIAL

22. Cash-out Procedure (Bank)
123
Enter 11 digit
Mobile #:
abc
Amount?
Enter the AMOUNT of G-Cash Value equivalent to the amount of loan to pay
1000
Wait for confirmation message, and record its corresponding reference or trace number
You have sent 1, of G-Cash to ABC Rural Bank, Inc. on 03/14/05 09:21AM. Your new balance is Ref. no
Enter the 11-digit Mobile Phone Number of the Bank-Branch and Click OK.
RBAP Confidential and Proprietary
CONFIDENTIAL

23. Cash-out Procedure (Bank)
Acknowledgement receipt equivalent to the amount cashed out shall be issued by the teller;
The teller shall issue an official receipt for the service fee paid;
The teller should ensure that the bank keeps the original copy of the G-Cash Service Form, copy of client’s ID and the acknowledgement receipt. Transaction trace number should be written on the G-Cash Service Form;
If the Cash-out transaction is drawn for deposit to the client’s accounts, the Teller shall require the client to fill up and signs a deposit slip. This document will also be filed together with the G-Cash form.
RBAP Confidential and Proprietary
PROCESS FLOW
CONFIDENTIAL

24. Recording Procedure at the Bank
In the absence of an automated recording system, the teller or bookkeeper or whoever is the one in-charge shall record the Trace/Reference Number, transaction date and time, amount, G-Cash name, whether the transaction was initiated by the bank or client, into the G-Cash Journal-CICO ;
All inter-office transfers shall be recorded in the G-Cash Journal – Inter-Office Fund Transfer
NEXT PHASE:AUTOMATED RECORDING
RBAP Confidential and Proprietary
CONFIDENTIAL

25. Consolidation Procedure (Branch Level)
At cut-off time, the branch must initiate the (phone-2-phone) fund transfer to Head Office
Menu-Driven:
To start G-Cash fund transfer, Go to Globe Services Menu (Globe Svcs+)>myFavorites>G-Cash>Send G-Cash (then Click OK)
Enter your M-PIN (then click OK)
Enter the 11-digit of the Head Office G-Cash cellphone number (then Click OK)
Enter the total amount of G-Cash to Transfer to Head Office (then Click OK)
RBAP Confidential and Proprietary

26. Consolidation Procedure (Branch Level)
Record/Log (in your G-Cash Inter-Office Journal) the Amount, Date, Time and Trace Number to indicate transfer of transaction;
Fax or G-Cash Journal to Head Office;
Entire amount in the G-Cash Wallet of the branch should be transferred to Head Office not later than 3:30 p.m. Branch G-Cash Wallet balance should be Zero (0) at the end of the day. Except when the bank specifically instructed GXI to maintain a wallet “threshold” in specified amount.
RBAP Confidential and Proprietary

27. Consolidation Procedure (Head Office Level)
Accounting Section to wait for the SMS confirmation for the Branch initiated transactions, record/log (in your G-Cash Journal - Inter-Office Fund Transfer) the Branch Name, Amount, Date, Time and Trace Number/Reference No.
RBAP Confidential and Proprietary

28. Settlement Procedure (G-Xchange)
At 4:00 p.m., GXI shall ‘initialize’ or reduce Rural Bank’s electronic G-Cash wallet corresponding to the amount to be credited to Rural Bank’s settlement bank account.
Before midnight daily, G-Xchange, Inc. (GXI) shall initiate a fund transfer from GXI account to Rural Bank’s Settlement Account.
RBAP Confidential and Proprietary

29. Settlement Procedure (Head Office)
Head Office may be able to verify the fund transfer through the on-line/internet banking facility of the settlement bank on the following business day.
GXI shall send via a report containing the daily summary of transactions of all branches enrolled under the program to the Head Office on the following business day.
FINANCIAL ILLUSTRATION
RBAP Confidential and Proprietary

30. Reconciliation (Branch Level)
Perform balance Inquiry of the G-Cash wallet by using G-Cash Menu.
Menu-Driven
Go to Globe Services (Globe Svcs+)>myFavorites>G-Cash>Balance
Enter M-PIN
RBAP Confidential and Proprietary

31. Reconciliation (Branch Level)
Wait for the reply message from Globe
Compare G-Cash wallet balance against Total Collection found in the G-Cash Journal
In case of difference in the two balances, raise an incident report and submit to the Head Office accounting department for Reconciliation. Through the Transaction List which is available through , Head Office will be able to reconcile balances.
RBAP Confidential and Proprietary

32. Reconciliation (Head Office Level)
Always establish Beginning and Ending of the Day balances for easy reconciliation on a daily basis.
To get Ending Balance #1 - Add G-Cash Wallet Beginning Balance of the day (as recorded in the G-Cash Journal) and P2P (phone-to-phone) Fund Transfer transactions during the day.
To get Ending Balance # 2 - Add G-Cash Wallet Beginning Balance of the day and the Total Transactions in the Logsheets (Faxed by the branches).
RBAP Confidential and Proprietary

33. Reconciliation (Head Office Level)
To get Ending Balance # 3 - Perform Balance Inquiry of the G-Cash Wallet Balance using:
Menu-Driven
Globe Services (Globe Svcs+)>myFavorites>G-Cash>Balance
then Enter your M-PIN and click OK.
RBAP Confidential and Proprietary

34. Reconciliation (Head Office Level)
Compare End Balance #1, End Balance #2 and End Balance #3. These balances should be of the same amount.
If there is a difference in any of the ending balances, check the Daily List of Transactions from Globe, Text Messages of the P2P Fund Transfer (if text messages are still available in the cellphone) and Transaction Entries in the Logsheet.
RBAP Confidential and Proprietary

35. Accounting Entry (Head Office Level – Part I)
A/R – G-Cash XXX
Due from Banks XXX
To record pre-funding of G-Cash value to the Head
Office G-Cash Wallet
Entry #2
Due from HO/Branches XXX
A/R G-Cash XXX
To record transfer of G-Cash value to the branches
RBAP Confidential and Proprietary

36. Accounting Entry (Branch Level)
A/R – G-Cash XXX
Due to HO/Branches XXX
To record G-Cash value received from Head Office
Entry #2
Cash In Vault XXX
A/R G-Cash XXX
To record total Cash-in transaction for the day
RBAP Confidential and Proprietary

37. Accounting Entry (Branch Level)
G-Cash Fund XXX
Due from Bank’s/Cashiers Check XXX
To record establishment of G-Cash fund to accommodate Cash-out transactions in lieu of Cashier’s Check for disbursement
Entry #4
A/R G-Cash XXX
G-Cash Fund XXX
To record total Cash-out transactions during the day
RBAP Confidential and Proprietary

38. Accounting Entry (Branch Level)
G-Cash Fund XXX
Due from Bank’s/Cashiers Check XXX To record replenishment of G-Cash fund
Entry #6
Due from HO/Branches XXX
A/R G-Cash XXX
To record transfer of G-Cash Value to HO for consolidation and settlement
RBAP Confidential and Proprietary

39. Accounting Entry (Head Office Level – Part II)
A/R G-Cash XXX
Due to/from HO/Branches XXX To record G-Cash Value received from the branches for consolidation
Entry #2
Due from Banks XXX
A/R G-Cash XXX
To record G-Cash Value settled by GXI through the settlement bank
RBAP Confidential and Proprietary

40. Accounting Entry (Head Office Level)
A/R – G-Cash Account XXX
Due To/From Head Office/Branches XXX
To record the P2P Fund Transfer of G-Cash from branches
Entry #4
Due From Banks (BPI) XXX
A/R G-Cash XXX
To record G-Cash Settlement with Globe
Entry #5
Due To/From Head Office/Branches XXX
Due From Banks (Branch Depository) XXX
To record the payment of Head Office to branch’s loan collection through G-Cash
RBAP Confidential and Proprietary

41. RBAP Confidential and Proprietary
Thank you & God speed!
RBAP Confidential and Proprietary
CONFIDENTIAL

42. Bank Branch Mobile Phone Number
ABC Rural Bank
Intramuros Branch
G-Cash Cellphone No.
2882<10-digit Bank Branch G-Cash Cellphone Number>
Important Notice
Please use the cellphone number above whenever you make transactions through G-Cash
Menu-Driven:
To send payment using G-Cash Menu-Driven Interface:
Go to Globe Services (Globe Svcs+>myFavorites>G-Cash>Send G-Cash
Enter your M-PIN and the 11-digit of the bank-branch’s cellphone number
Wait for the confirmation message. .
RBAP Confidential and Proprietary

43. Automated Posting Process (Second Phase)
Download/Capture text messages from the Cellphone using the interface program
Check the downloaded/captured messages in transaction format (cellphone number, name, amount, trace number, date and time)
Update the captured messages banking system
Create appropriate reports
RBAP Confidential and Proprietary

44. Illustrated Financial Figures for Settlement with GXI (Cash Out)
Rural Bank Head Office (G-Cash Wallet)
G-Xchange Settlement Account (Settlement Bank Account) - BPI
Date DR CR
Beg Bal. (w/o pre-funding)
12/ (Fund Transfer from Branch#1)
500
12/01/2004 (Cash Out Transfer initiated by G-Xchange)
Balance (after Cash Out) = 0
Date DR CR
Beg Bal.
XXXXX.XX
12/01/2004 Fund Transfer Debit (Cash Out to RB’s Settlement Account)
500
Balance = XXXXX.XX
Rural Bank Head Office ( Settlement Bank Account) - BPI
Date DR CR
Beg Balance
15,000
12/01/2004 (Fund Transfer – from G-Xchange Settlement Account for Cash Out Transfer)
500
Balance (after Cash Out) = 15,500
RBAP Confidential and Proprietary

45. RBAP Confidential and Proprietary
These materials were made possible through the support provided by the U.S. Agency for International Development/Philippines under the terms of the contract no. 492-C The opinions expressed herein are those of the author(s) and do not necessarily reflect the views of the U.S. Agency for International Development.
RBAP Confidential and Proprietary

46. CICO Workshop : Group Exercise
Requirement:
CICO “over the counter” transaction documentation – including “KYC”;
CICO Branch Processing and documentation;
Pre-funding and Consolidation to H.O.
Players:
Cash-in client
Cash-out client
Teller
Cashier
H.O.
GXI PHONE:
RBAP Confidential and Proprietary

47. Verification Process Flow
Bank Checks Forms & Requirements
Client Accomplish Forms
Client’s Identity
Established?
KYC NO
Deny
YES
Clerical
Processes
Client’s Copy
Actual G-Cash Process
Bank’s
Records
RBAP Confidential and Proprietary

48. Bank Checks Forms & Requirements Client Accomplish Forms
Cash-In Process Flow
NAC/Teller (Documentation)
Photocopies Forms
Prepares Receipts
Attach valid IDs to completed G-Cash Form
Documents to Authorized Officer
Bank Checks Forms & Requirements
Client Accomplish Forms
NAC/Teller (Financial)
Receives payment from client
Validate & Post to Tellering System
Forwards to Cashier for P2P transaction
Client’s Copy
Bank’s
Records
Cashier
Performs P2P transaction
Ask client to sign the confirmation
RBAP Confidential and Proprietary

49. Bank Checks Forms & Requirements Client Accomplish Forms
Cash-Out Process Flow
NAC/Teller Photocopies Forms
Prepares Receipts
Attach valid IDs to completed G-Cash Form
Documents to Cashier
Bank Checks Forms & Requirements
Client Accomplish Forms
Cashier
Give Bank’s G-Cash number to client
Ask Client to perform P2P
Ask the client to sign documents
Forwards to Teller for Payout
Client’s Copy
Teller
Post & validate G-Cash transaction to the system
Payouts (cash) to the client
Bank’s
Records
RBAP Confidential and Proprietary