The Department of Financial Services recently issued OM No. FS-10/57/2022-FS-DOP, bringing attention to the vital task of reconciling balances within the Post Office Savings Bank (POSB) and Small Savings Schemes (SC). This directive builds on previous correspondence from July 19, 2024, urging all Circles to complete critical activities tied to the reconciliation of POSB data in Finacle.
Key Highlights of the Directive
In its latest communication, the Financial Services Division reiterated several key aspects:
- Data Sharing and Reconciliation Timeline:
- On July 22, 2024, Finacle data pertaining to receipts and payments was shared with the Operations Committees.
- The Committees are tasked with combining Finacle data with manual transaction data and sharing this consolidated information with the Accounts Committees. The goal is to identify discrepancies related to misclassified interest.
- Circles are expected to complete this consolidation by October 22, 2024 and resolve all discrepancies concerning receipts, payments, and interest classification by October 30, 2024.
- Addressing Observations and Missing Data:
- Several Circles raised concerns regarding missing data. These observations were communicated to the CEPT/CPRC teams, which conducted an in-depth analysis and re-extracted CBS Finacle data.
- This refined data has now been shared with all Circles in the format outlined in Annexure I for further action.
- Upcoming Review:
- A comprehensive review of the reconciliation process is scheduled for the first week of November 2024, to be chaired by Member (Banking & DBT) via video conference.
Annexure I: A Guide to the Reconciliation Process
The detailed steps for handling CBS receipts, payments, and interest data are laid out in Annexure I. This section explains how to manage the data and provides clear guidelines to avoid common errors, such as comparing cash account or SAP GL data with Finacle data.
Key Details of the “CBS Receipts, Payments & Interest” Data:
- No CBS Data for April-November 2013: CBS migration began in December 2013, so there’s no available data for earlier periods.
- Account SOL-Wise Data: The data has been extracted on an account SOL-wise basis, not transaction SOL-wise.
- Exclusions: Annual interest, scheme-wise balances, and closed account data are excluded, among other specific exceptions.
- Included Data: Standing instructions and certain entries related to the Mahila Samman Savings Certificate (MSSC) are included, while others, like “PM Cares” accounts, are excluded from this process.
Excel Sheet Format
An Excel sheet provided as part of this reconciliation process contains crucial columns to track both CBS and Non-CBS data. These columns include:
- Financial Year
- Month
- HO Name
- Head of Account
- CBS Receipts/Payments
- Non-CBS Receipts/Payments
- Total Receipts/Payments (CBS + Non-CBS)
Handling Non-CBS Data
Non-CBS data represents transactions not captured in Finacle, and the Operations Committee must ensure this data is filled correctly. This data comes from the period before CBS migration or from certain transactions entered outside the Finacle system, such as through SAP or Cash Account.
Key points include:
- Offices migrated to CBS after April 2013 are treated as “Non-CBS” until their respective migration date.
- Reconciliation should trace back to the financial year 2013-14.
Ensuring Accuracy
It’s important to note that transactions accounted for in any other SOL cannot be considered “Non-CBS.” Any mismatches due to Circle bifurcations should be carefully forwarded to the relevant Circle for accurate reconciliation.
Conclusion
The timely completion of the reconciliation process is essential to maintain accuracy within the POSB/SC systems. All Circles must take prompt action to consolidate CBS and manual transaction data and ensure discrepancies are identified and corrected by the October 2024 deadlines. The upcoming review in November will serve as a vital checkpoint for progress in this critical financial task.
With continued collaboration between the Operations and Accounts Committees, this reconciliation will help ensure greater transparency and accountability within the POSB/SC systems.