JAIIB AFB Unit 27 - Back Office Operations/Handling of Unreconciled Entries in Banks

Functions performed by the Back Office

Back office functions can be grouped as under :

1. Book keeping and accounting – Transaction processing, maintenance of General Ledger and other book of accounts
2. Deposits – Calculation and posting of interest, service charges
3. Loans – processing end-to-end loan originations, calculation of EMI, calculation and posting of interest, penal interest, processing fee, commission, charges, risk management
4. Regulatory compliance – Identifying KYC gaps, customer grievance redressal system
5. e-Banking – handling transactions through internet, mobile banking or ATMs
6. Other functions – Clearing, collection, remittances

Reconciliation functions in Banks

1. Reconciliation of accounts for payments involving intermediaries
2. Reconciliation of accounts for with correspondent banks
3. Reconciliation of bank accounts with RBI and other banks and institutions
4. Reconciliation of Inter branch entries
5. Reconciliation of Inter Office transactions

RBI guidelines regarding inter office entries
Reconciliation set up and process at the banks