Delegation of bank account handling for online transactions is a critical task. I am seeking guidance on the preventive measures I could take when delegating the handling of bank account transactions. Additionally, I would like to know what terms, conditions, or agreements I would need to establish before hiring a person for this role. Furthermore, I am interested in understanding what kind of reports would help me trace the authenticity of the transactions effectively.
From India, Mumbai
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From India, Mumbai
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Hi Ajit, I think you are trying to find out what would help to track and control online transactions (net banking) if you would authorize somebody else to operate your bank account on your behalf. If yes, you may do so as per the following suggestions -
1. Once you opt for 'Online transactions' (i.e. net banking) using the web/net service of your bank, you will be supplied with 2 passwords (one user ID and one PW) and one password (to be used when you transfer amounts to some other persons' accounts where you know their bank details like i) Bank A/c No. ii) Bank name and branch name iii) IFSC code of the branch. Using these details, you can transfer money from your account to other accounts of yours or someone else's. Banks will ask you to specify the maximum limits for such transactions. These IDs and passwords should be changed periodically, say every 90 days. If you use the wrong ID or password three times in a day (i.e. 00:00 hrs to 24:00 hrs), this online facility will become 'inoperative,' in which case you have to request your bankers to 'reset' your ID and passwords. Supposing you come across any wrongful transaction done using this facility, you should immediately open the portal of your account and change the passwords, thus 'locking' it so that no one else could open your portal and do the transactions. You have to keep a watch on the SMS messages received regarding every transaction of your accounts.
2. If the above method is used and you share these IDs and passwords with someone else for operational reasons, these transactions are linked to your email ID and mobile number. Therefore, you will receive a message for every transaction done on this account, and you can view the statement of the last 3 months 'online.' If you require past records or statements, you have to write to your banker and obtain them.
3. There is also mobile banking, which I would suggest not be shared with anyone else.
From India, Bangalore
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12731. Once you opt for 'Online transactions' (i.e. net banking) using the web/net service of your bank, you will be supplied with 2 passwords (one user ID and one PW) and one password (to be used when you transfer amounts to some other persons' accounts where you know their bank details like i) Bank A/c No. ii) Bank name and branch name iii) IFSC code of the branch. Using these details, you can transfer money from your account to other accounts of yours or someone else's. Banks will ask you to specify the maximum limits for such transactions. These IDs and passwords should be changed periodically, say every 90 days. If you use the wrong ID or password three times in a day (i.e. 00:00 hrs to 24:00 hrs), this online facility will become 'inoperative,' in which case you have to request your bankers to 'reset' your ID and passwords. Supposing you come across any wrongful transaction done using this facility, you should immediately open the portal of your account and change the passwords, thus 'locking' it so that no one else could open your portal and do the transactions. You have to keep a watch on the SMS messages received regarding every transaction of your accounts.
2. If the above method is used and you share these IDs and passwords with someone else for operational reasons, these transactions are linked to your email ID and mobile number. Therefore, you will receive a message for every transaction done on this account, and you can view the statement of the last 3 months 'online.' If you require past records or statements, you have to write to your banker and obtain them.
3. There is also mobile banking, which I would suggest not be shared with anyone else.
From India, Bangalore
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Thank you, Kumar, for guiding me. I need some more information once everything is completed. I want to know how to create an agreement or undertaking and what structure could be implemented to ensure daily reconciliation. This is necessary to guarantee that the person handling the finances does not take advantage and siphon money.
From India, Mumbai
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From India, Mumbai
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There are a few methods in organising a foolproof system to have control over banking operations, depending on your suitability, you can adopt one or more system:
I don't know what kind of operations you have and its requirement, assuming certain single office set up I put forth these suggestions, anything specific you can get them clarified in due course.
So far as handling Cash is concerned, by your own option, you may entrust this task to your cashier who must be reliable, honest/faithful & shrewd. If necessary some deposit money can be secured before appointment or recovered from monthly salary and accumulated be kept as security deposit.
Reg. other than cash transactions, there are payments by way of –
i) Crossed cheques in favour of the payees’ names and posted to them
ii) By cheques, remitted into the bank accounts of the payees in their respective banks
iii) By NEFT (upto 2.00 Lakhs), RTGS to any bank & any branch
iv) Online transfer by NET BANKING using confidential PW provided by the banker
v) By Net banking using dedicated mobile Nos
vi) Authorising your banker by way of sending them particulars of payees’ bank a/cs together with amounts to be credited. This authorisation can be transmitted through your exclusive eMail a/c.
If you consult your banker they might suggest best method suitable to your kind of operation.
If you opt, of authorising your colleagues to operate NET BANKING you might open another bank a/c (a secondary a/c in the same branch or another nearby branch or bank) by use of the exclusive User ID & PW shared by you. The PW can be changed by you any time without notice to anybody. You will transfer funds from your main/primary bank a/c to the extent amounts required on day-to-day basis. As you will receive SMS alerts & eMail messages for every transactions and balances, you will have uptodate information at any time. Full statement of accounts can also be seen, prints taken at any time.
This will give you enough tool to interfere and take any corrective & alternative steps at any time.
A single person operating the NET Banking is available only if yours remain as a sole proprietorship business. If you are a partnership firm or a Co., NETBanking can be operated by two authorised persons only.
In my view, agreements/undertaking or any indemnity bonds can help to some extent only as they cannot be a preventive tool. It cannot serve as a foolproof system. In the days of digital frauds becoming more and more it's imperative that monetary controls should be such that ensure NO ROOM for frauds & embezzlement.
From India, Bangalore
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I don't know what kind of operations you have and its requirement, assuming certain single office set up I put forth these suggestions, anything specific you can get them clarified in due course.
So far as handling Cash is concerned, by your own option, you may entrust this task to your cashier who must be reliable, honest/faithful & shrewd. If necessary some deposit money can be secured before appointment or recovered from monthly salary and accumulated be kept as security deposit.
Reg. other than cash transactions, there are payments by way of –
i) Crossed cheques in favour of the payees’ names and posted to them
ii) By cheques, remitted into the bank accounts of the payees in their respective banks
iii) By NEFT (upto 2.00 Lakhs), RTGS to any bank & any branch
iv) Online transfer by NET BANKING using confidential PW provided by the banker
v) By Net banking using dedicated mobile Nos
vi) Authorising your banker by way of sending them particulars of payees’ bank a/cs together with amounts to be credited. This authorisation can be transmitted through your exclusive eMail a/c.
If you consult your banker they might suggest best method suitable to your kind of operation.
If you opt, of authorising your colleagues to operate NET BANKING you might open another bank a/c (a secondary a/c in the same branch or another nearby branch or bank) by use of the exclusive User ID & PW shared by you. The PW can be changed by you any time without notice to anybody. You will transfer funds from your main/primary bank a/c to the extent amounts required on day-to-day basis. As you will receive SMS alerts & eMail messages for every transactions and balances, you will have uptodate information at any time. Full statement of accounts can also be seen, prints taken at any time.
This will give you enough tool to interfere and take any corrective & alternative steps at any time.
A single person operating the NET Banking is available only if yours remain as a sole proprietorship business. If you are a partnership firm or a Co., NETBanking can be operated by two authorised persons only.
In my view, agreements/undertaking or any indemnity bonds can help to some extent only as they cannot be a preventive tool. It cannot serve as a foolproof system. In the days of digital frauds becoming more and more it's imperative that monetary controls should be such that ensure NO ROOM for frauds & embezzlement.
From India, Bangalore
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