COMMERCIAL BANK OF ETHIOPIA Card and Online Banking Procedure July 2020 Addis Ababa; EthiopiaTable of Contents ANNEXES? sn PART ONE wn. INTRODUCTION 1.1 Preamble. 1 1.2 Definition of Terms and Concepts... a. 1.3. Objectives of the Procedure... 5 1.4 Scope of the Procedure. 5 1.5. Governing Rules.... 5 1.6 Digital Banking Service Structure 6 1.7. General Authority and Responsibility an 1.7.1 President. : lh 1.7.2 Executive Vice President -Branch & Digital Banking... ou8 1.7.3 Vice President - Branch Banking Regional Office..... 8 1.7.4 Director-Digital Banking services 1.7.5. District- Director. 1.7.6 Manager- Digital Banking 1.7.7 Manager- Online & Card Banking : mets 1.7.8 Manager ~ Quality Management and Control... Sssteteettssiarsentebrsean 1.7.9 Branch Manager. wl PART TWO... Pelee akcistrss rns CUSTOMER ACQUISITION AND SELLING... 14 2.1 Selling of Cards.. e 14 2.1.1 Debit Card Request and Delivery. Ecce os : : 14 21.1.1 Debit Card Request 14 2.1.1.2. Debit Card and PIN Delivery... : 15 2.1.2 Pre-paid Card users Recruitment and Delivery... 16 2.1.3. Cash reloading to existing Prepaid-cards.. 19 2.2 POS service... ss ea 20 2.2.1. Merchant Recruitment for POS Service Perec eee ae 20 2.2.2 Deployment of POS Machine a eee eater 2.3. Merchant Registration for Special POS Service a ee seeseenearecaceeet 2.3.1 Manual card entry Transaction Authorization 24 2.3.2 Voice Transaction Authorization am 2.3.3 Corporate POS merchant's management. ee ea 2.4 Mobile Banking Service SellING ......ncreeeenn : sn DB 2.5 Internet Banking Service SelliNg....nmeonnn : 29 ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure \Sa o* so op enoCommercial Bank of Ethiopia 2.6 Transaction Checking and Document custody PART THREE 3° Collection 3.1. Collection through POS. 3.2. Collection through ATMs. 3.3 Collection through Online Channels... 3.4 Transaction Checking and Custody of Documents in Collection PART FOUR 4 PAYMENT. 4.1 Payment through POS Cash Advance. 4.2 Payments through ATM& Online Banking 4.3. Transaction Checking and Custody of Documents. PART FIVE 5, Transaction and Checking Limit 5.1, Transaction limit on payment Cards i 5.2. Transaction imit on Online Banking Channels (MB&1B).. 5.3, Transaction and Document Checking PART SIX.. 6. Book Management : 6.1. ATM Balancing and Reconciliation... 6.1.1, Reconciliation of CBE Cards Transactions 6.1.2. Reconciliation of Other Bank Card Transactions... 6.1.3. Reconciliation of International Cards Transaction 6.1.4. Reconciliation of Foreign Cash Exchange at Forex ATMs 6.1.5. Reconciliation of deposit transactions on ATMs. 6.1.6. Exceptions in ATM Reconciliation and Balancing. 6.1.6.1. Cash Withdrawal without Affecting Customer Accounts (CBE). 6.1.6.2. Debiting Customer Accounts without Dispensing Cash (CBE)... 6.1.6.3. Forex ATM captures currency but doesn’t dispense cash 6.1.6.4. ATM cash payment conflict Resolution 6.1.7. POS Reconciliation and Balancing 6.1.7.1, Merchant POS Transactions Reconciliation... 6.1.7.2. POS Cash Advance Transactions 6.1.7.3. Exceptions in POS Transactions. 6.1.7.3.1, Incomplete Transactions and Amount Locked 6.1.7.3.2, Transactions not reflected on Merchant Account... 6.1.7.3.3. Refunding unsuccessful Transactions onstlerchant’ 5)P0S.. € 1 WY Se) 'BDR/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page ii Sorbo 56Commercial Bank of Ethiopia 6.1.8, General Ledger Position follow-up 58 6.1.8.1, Online banking System Suspense..... 5B 6.1.8.2, ATM/Card Banking Suspense ACCOUNE wn senna SD 6.1.9. Transaction Checking and Custody of Documents. eee 60 PART SEVEN : aioe Pirie CUSTOMER PROFILE MANAGEMENT... eee 7. Customer Profile Management... ool 7.1. Profile Change/Amendment for Card Banki 7.1.1, Additional/Secondary Card Request ..... 7.1.2. Additional Account Association to Debit Card, 7.1.3. PIN Change Request eet one . 7.1.4. Card Replacement/Refund coon Se 63 7.1.4.1, Replacement of Debit Cards incase of Lost/Stolen 64 7.1.4.2. Refund of Non-reloadable Pre-paid Card while Lost/Stolen .....c.n.n::ennienisnus 65 7.1.4.3. Replacement of Personalized R/P/Cards while Lost/Stolen... ae 66 7.1.4.4, Replacement of Damaged D/P/Cards (Wallet/Co- Branded) Berea 10 7.1.4.5. Card Replacement for Expired Debit Cards... rl 7.1.4.6. Additional POS Terminal Request... 68 7.1.4.7. Replacement of POS Terminals. 69 7.2. Profile Change/Amendment for Online Banking Service. ence FO) 7.2.1. Change/Additional Account Association for Mobile Banking.. 10 7.2.2. Change/Additional Account Association for Internet Banking ec... tT 7.2.3. Change in Customer’s/User’s Information on Internet Banking Service... B 7.2.4, User Change/Replacement for Corporate Internet... rariaaemmesesorenat TD 7.3. View Access to Non-Signatories Corporate Internet Banking Users 5 Td 7.4, Token Management... 7.4.1. Lost/Stolen Hard Token Handling and Replacement... 7.4.2, Faulty/Damaged Hard Token Replacement, 7.4.3. Expired Token Handling and Reissuance 7.5. Transaction Checking and Custody of Documents PART EIGHT..... B. Termination oncom a aoa casein 15 8.1, Termination of Card Banking Services. 79 8.2. Merchant POS Contract Termination... TD 8.3. POS terminal Displacement/Removal..... 80 8.4. ATM Relocation Stee ta 81 8.5. Online Banking Services Termination 82 \< H 8DB/PR/05/i.0/20 Digital Banking Service; Card and Oxi Banking Procedire Page iti8.5.1, 8.5.2. 8.6. PART 9. Commercial Bank of Ethiopia f Termination/Blocking of Mobile banking services..... sn 82 Termination of Internet Banking Services : 83 Transaction Checking and Custody of Documents cee on} NINE : a so tee: ATM CASH MANAGEMENT .....0nmennnmnininninniniunnnnnnninnininnninnn 85 Branches with one Senior Branch Banking 0 Officer Cash... 91, os at 9.2, Branches with additional Senior Branch Banking Officer-Cash.. 86 9.3. ATM Cash Shortage handling 9.4. ATM Cash Excess... 9.5. Transaction Checking and Custody 0 of Documents. PART TEN.. 10. Other Operational Issues... 2 10.1. Keys and Combination Management ae ee 10.1.1. Handling of ATM keys and Combination Code... 10.1.2, ATM Combination Code Change. 10.1.3. Replacement of Lost ATM Key. 10.2. 10.3. 10.4. 10.5. 10.6 PART 1. 1d... 11.2. PART TWELVE... 12. 12.1. 12.2. 12.3. 12.4. ATM cassette Calibration Change...nmum Sie 94 POS terminals application and Software Update...... 95 Handling of Undelivered Payment Cards 96 Handling Forgotten/captured Cards 7 Transaction Checking and Custody of Documents. 98 ELEVEN, ei 99 Quality Management & & Control Function. 99 Card and online Banking Users’ Registration and Transaction araainenD Other Issues 100 101 101 Repeal, Revision and Effective Date Repeal 101 Revision of the Procedure. 101 Exceptions 101 Effective Date. 101 ‘BDB/PR/05/1.0/20 Digital Banking Servi ‘ard and Online Banking Procedure Page ivDocument Control Details DOCUMENT NAME DOCUMENT INDEX NUMBER Document Review and Approval Card and Online Banking Procedure | BDB/PR/05/1.0/20 Name Role Signature Date Author 1 | Branch and Digital Banking Division(BDB) Eve Reviewers and Validators 1 | eMc Approver 1 | Ato Abie Sano The President Document Version History Version Date Author V1.0 December 23,2020 BDB First Final Version ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure PageAnnexes: Annex 1: Hand Book on Card and online Banking (Customers’ Classification, Product Features Channels and Services Annex 2: Agreements Annex 2: Formats (Form No CBEBBF001) Annex 2: Terms and conditions (No.CBEBBTC002) Annex 3: Standard Service Delivery Time Data Tracking Form Annex 4: Standard Service Delivery Time Data Tracking Form BDB/PR/05/1.0/20 Digital Banking Service; Card and Online ‘Banking Procedure PageATM - CBE - EDRMS - GL- POS - USSD - XHTML - Acronyms Automated Teller Machine Commercial Bank of Ethiopia Electronic Documents Recording and Management System Electronic Journal General Ledger Internet Banking Mobile Banking Point Of Sale Un-structured Supplementary Service Data Extensible Hyper Text Markup Language ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure PageCommercial Bank of Ethiopia PART ONE INTRODUCTION 1.1Preamble Whereas the Bank has implemented a new organizational structure where in Digital Banking Service is established as a department under Branch banking Regional Office; Whereas The current digital banking functions at branches, districts and Head office were reviewed, redefined and framed according to the revised structure; Whereas districts and branches plays critical role for the realization of the Bank's Digital Banking goals and objectives and needs proper integration with owner of digital banking goals at Head Office; Whereas there is a need to review the existing digital banking activities performed by branches and Head office organs and framed them under one set of guiding document/procedure; Whereas Card and online banking products and service of CBE has increased from time to time and become strategically significant and selected as one of strategic theme; Whereas the existing card and online banking operational procedure within the branch banking procedure was not found sufficient, needs revision, enrichment and demands independent document; Now, therefore, it becomes important to develop and introduce this new “Online & card Banking Procedure” within the current operational requirements of the Bank. ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 11. Commercial Bank of Ethiopia 2 Definition of Terms and Concepts Terms and concepts of some words used in the body of this procedure shall be interpreted as follows; 1. 10. Authorization: Shall mean the process of approving or declining any business transactions. Automated Teller Machine (ATM): Shall refer to unattended acceptance terminal that has electronic capacity, accepts PIN, dispense/receive money, and may provide balance confirmation, fund transfers between accounts and other services. Cash Advance Service: Shall mean a feature that allows cardholders to withdraw cash over- the-counter at bank. Card clea : Shall refer to all of functions necessary to collect a clearing record from an acquirer in transaction currency and delivery to issuer in billing currency. Checking: Shall mean ascertaining the completeness and correctness of the source document and the transaction as per the bank procedure. Core Banking: Shall mean a banking system that is centralized, online and real-time exchange which is provided by networked branches of the bank through which customers may access their bank account and perform basic transactions. Corporate Customer: Shall mean a legal or an artificial person, organizations, enterprises, associations, government offices and the like that the bank is dealing with. Co-branded Cards: Shall mean a card that is offered by the bank based on contractual agreement between the bank and interested organization to join efforts and launch one-card featuring both brands for mutual benefit. Customer: Shall mean a legal person or natural person with whom the bank agrees to conduct business. Debit Card - (pay now): Shall mean payment card which is used to debit from the customer account at the time of transactignt Fy 3/PR/05/1.0/20 Digital Banking Service;Commercial Bank of Ethiopia 11. 12. 13. 14. 15. 16. 175 18. 19, 20. 21. Diaspora Accounts: Shall mean a foreign currency account opened for Ethiopians living abroad (who lived abroad for more than one year); and eligible foreign nationals of Ethiopian origin. Downloadable Channel: Shall mean a type of mobile banking service that allow customer to download CBE’s Mobile Banking Application using smart phone apparatus. Exceptions - Shall mean events that are not clearly stated on this procedure while their nature is within the spirit of this procedure. Financial Transaction: Shall mean an event which involves money or payment, such as deposit money into a bank account, borrow money to customers. Floor Limit: Shall mean maximum amount of money allowed for a single card/online based transaction without the need for authorization. Foreign-Currency Accounts: Shall mean an account whose source of fund is overseas and that can be maintained in foreign currency. Issuer (Issuing Bank): Shall mean a financial institution and member of International Payment System that holds contractual agreement(s) with and issues cards to cardholder. Inter Branch: Shall mean transactions whose source account and destination account are held at different branches. Internal Control: Shall mean a process effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of organizational objectives relating to operational, reporting and compliance. Magnetic Stripe (Mag stripe): Shall mean a strip of magnetic material affixed to the back of a card that contains cardholder's account information. Merchant: Shall mean an entity that contract with an acquirer to originate transactions and accepts cards for payment and displaying bank's and the issuer's logo. mie’ 75. ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 322. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. Commercial nk of Ethiopia National e-Payment Switch :Shall mean the National e-Payment Switch and related systems as well as the corresponding Data Centre and Network Infrastructure operated by Ethio-pay. Non-Financial Transaction: Shall mean an event which doesn't involve transfer of funds between accounts. Online Ban! shall mean an electronic payment system that enables customers of a bank to conduct a range of financial transactions through the bank’s website, Personal Identification Number (PIN) - Shall mean a secret numeric password shared between the user and the electronic payment system which is used to access the electronic banking service. Point of Sale (POS) Terminal: Shall mean an electronic device used for authorizing and processing Bank card transactions at the point of sale. Prepaid Card (pay before): Shall mean type of payment card where the card balance is loaded ahead of time from customer’s account or collecting of cash. Prospect Customer: shall mean a proposed (potential) customers in which the bank assumes to deal with business in the future. Single-Message Processing: Shall mean a processing methodology wherein transaction authorization, clearing and settlement are facilitated through single exchange of messages between an acquirer and issuer. Smart/ Chip cards: Shall mean plastic payment cards with an embedded computer chip that communicate information to a chip-reading device during transactions. Switch Member: Shall mean Ethio-pay member Bank operating with own or shared switch for interbank retail card payments with other member banks, Switch: Shall mean a system that handles different electronic payments and channels among banks. Verification of Signature: Shell mean the checking of the signature with naked eye without sending the docum, department.Commercial Bank of Ethiopia 1.3 Objectives of the Procedure The primary objectives of this procedure are to: A. Ensure standardization and quality card and online banking service across all branches; B. Have a single source of reference for performers; and C. Determine the duties and responsibilities of staffs involved in card and online banking service 1.4 Scope of the Procedure The procedure shall cover and govern all card and online banking service related activities through the echelon of the digital banking service structure. 1.5 Governing Rules This procedure shall be governed by: A. The Branch banking Procedure of the Bank; B. The Information System Security Policy of the Ban! C. Anti-Money Laundering Policy of the Bank; The accounting policy of the bank; Internal control framework of the bank; The Risk Management Framework of the Bank; G. Corporate Governance Framework of the Bank; H. The relevant Directives of the National Bank of Ethiopia; 1. The Commercial Code and other related laws/regulations of the country; and eS > J. Other retevaint-National and International laws, regulations and directives. ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page SCommercial Bank of Ethiopia 1.6 Digital Banking Service Structure Structurally, Online & Card banking is found under Branch Banking Regional office within Digital Banking service as a unit. The organizational structure is developed taking in to account the new work flow, authorities, responsibilities and new business principles. A. Corporate Level President Executive VP- Branch and Digital Banking VP - Branch Banking a Regional Office Vp- Digital Banking Director - Digital Banking District - Sanics Director Manager - Agency Bankin: Manager - Card and 9 ort 3 Online Banking <9 Fag a % ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 6Commercial Bank of Ethiopia B. District level Cc. Branch level ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and ‘Online Banking Procedure Page7Commercial Ban of Ethio 1.7 General Authority and Responsibility 1.7.1 President The President shall; A. Approve this Online and card banking operational procedure; B. oversee implementation of this Procedure; and C. Approve part or full amendments of the procedure hereafter, 1.7.2 Executive Vice President -Branch & Digital Banking ‘The Executive VP- Branch & Digital banking shall; A. Oversee the implementation of the Online & card banking Procedure; B. Initiate revisions on this Procedure in light of its appropriateness to the Bank's vision, and strategy; C. Ensure intra and inter sector collaboration; D. Oversee adequacy of risk identification, assessment, measurement, Monitoring and controlling in relation with card and online banking operation; E. Oversee the overall Card and online banking performance of Regional Offices 1.7.3 Vice President - Branch Banking Regional Office The VP - Branch Banking Regional Office shall: A. Plan, direct and coordinate activities of the region office with regard to digital banking service within the approved Digital Banking service procedures, guidelines and directives of the bank; B. Monitor the overall performance of the-Qigital»Banking Services in the region; ¥ ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 8Commercial Bank of Ethiopia C. Ensure adequacy of risk identification, assessment, measurement, monitoring and control over digital banking services; D. Review and approve marketing, sales campaign and other initiatives proposed from Director Digital banking service/District offices; E, Ensure inter and intra division collaboration and synergy; F. Ensure proper implementation of the Digital Banking service Procedure; and G. Initiate revisions on the Digital Banking Service Procedure in light of its appropriateness to the Bank's vision and strategy. 1.7.4 Director-Digital Banking services The Director-Digital Banking services shall; A. Plan, direct, coordinate, monitor, evaluate the overall Digital Banking service activities and propose the appropriate budget for the department; B. Cascade goals and targets to units under the Department and periodically appraise their performances based on the department scorecard; C. Ensure the implementation of the Digital banking strategy and corresponding action plans across the region; D. Ensure Online & card banking activities are conducted in an organized, structured and team-based manner; E. Ensure adequacy of risk identification, assessment, measurement, monitoring and controlling over digital banking service across the region; F. Conduct periodic assessment on monitoring, controlling and provision of feedback regarding Online & card banking performance and propose recommendation for improvement; G. Coordinate experience sharing sessions with best and low performing branches and districts under regional offices; H. Ensure the integration of Online & card banking unit within and across other departments and regions; ce its and propose mitigation mechanisms; I. Review periodic risk assess ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 9Commercial Bank of Ethiop J. Conduct capacity development and training programs for employees under the department, districts and branches within the regional offices; and K. Ensure Online & card banking activities are conducted in compliance with the NBE directives and the bank's procedure. 1.7.5 District- Director ‘The Director-District office shall: A. Plan, direct, coordinate, monitor, evaluate the overall card and online banking activities and propose the appropriate budget for the tasks; B. Ensure that branches are working towards the bank's strategy to enhance the Online & card banking services; C. Ensure inclusive understanding and proper implementation of the Online & card banking procedure by all performers of Districts and branches; D. Ensure that all performers of Districts and Branches are discharging their duties and responsibilities laid in this procedure; E. Identify, assess, measure, monitor and control digital banking associated risks; F, Monitor and ensure appropriate segregation of duties are in place; G. Monitor the proper implementation of the Digital Banking Strategy; and A. Propose marketing strategies that are suitable for its area of coverage. 1.7.6 Manager- Digital Banking The Manager Digital Banking shall; A. Plan, direct, coordinate, monitor, evaluate the overall digital support activities and propose the appropriate budget for the unit; B. Cascade goals and targets to employees under the unit and periodically appraise their performances based on theshdividual and team scorecard; C. Ensure online & card banking operafionat sUpport requests are responded within the SDT; Ss areiat gas BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 10Commercial Bank of Ethiopia D. Identify, assess, measure, monitor and control risks; E. Ensure inclusive understanding and proper implementation of the Online & card banking procedure by all performers at unit and branches; F. Closely work with all units under District offices as well as District operation & support team; G. Review periodic risk assessments and propose mitigation mechanisms; H. Ensure Inter & Intra-departmental collaboration; and I, Spearhead sales and marketing campaigns related to Online & card banking. 1.7.7 Manager- Online & Card Banking The Manager-Online & Card banking shall: A. Plan, direct, coordinate, monitor, evaluate the overall Online & card Banking activities and propose the appropriate budget for the unit; B. Cascade goals and targets to employees under the unit and periodically appraise their performances based on the individual and team scorecard; C. Support districts on Card, MB, IB & POS merchant recruitment/management; D. Identify, assess, measure, monitor and control risks; E, Review and monitor the overall operational performance of Online & card Banking individual users & merchants within the region; F. Monitor provision of technical support and trainings to districts and branches; G. Conduct periodic risk assessments and propose mitigation mechanisms; H. Arrange awareness creation session for districts, POS merchants & corporate IB users. 1, Scale up best experiences to be applied to districts and ensure its implementation; xt jal offices as well as District and BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 11Commercial Bank of Ethiopia. kK. Identify and approach potential stakeholders & partners with in the region for online & card banking business and create possible linkage with branch. 1.7.8 Manager - Quality Management and Control The Manager Quality Management & Control shall: ‘A. Supervise/monitor the overall control activities at Districts and Branch in relation to digital banking service; B. Continuously assess the internal control and quality management work practice of the District and branch and propose changes; €. Perform regular internal and quality management control assessment at District and branch to identify loophole in relation with digital service; D. Ensure the implementation of Quality Management & Control framework/system at Districts and branch; E, Follow-up un-rectified audit and Quality Management & Control reports; and F, Make Operational Risk Assessment of the District and branch and follow up the mitigation plan drawn by District and branch. 1.7.9 Branch Manager ‘The Branch Manager Shal ‘A. Plan, direct, coordinate, monitor, evaluate the overall Online & card Banking activities of the branch and propose different initiatives to register better performance in card and online banking business; B. Ensure proper understanding and implementation of the Online & card ban| 19 procedure by all performers of the Branch; C. Enforce implementation of this procedure, identify, assess, measure, isks; D. Ensure that branch Performers are org on to enhance the Online & card banking Services; monitor and control BDB/PR/05/1.0/20 Digital Banking Service; Gard and Online a “ Page 12F. Commercial Bank of Ethiop Ensure that all Performers are discharging their duties and responsibilities laid in this procedure; and Ensure that proper awareness is created and performers are consistently selling Online & card banking products and services to customer. BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 13Commercial Bank PART TWO CUSTOMER ACQUISITION AND SELLING 2.1 Selling of Cards Any customers can request any type of new card in any of CBE branches. Branch Manager The Branch manager shall assign: A. One Sen management, custody and delivery to customers of all card type; and Branch Banking Officer-Business to handle PIN B. One Customer Service Manager to handle Card management and delivery to customer of all card type. 2.1.1 Debit Card Request and Delivery 2.1.1.1 Debit Card Request Branch Banking/Junior Officer - Front/Digital Banking Officer A. Explains about the features and benefits of debit cards to customers; 8. Assists the customer to fill/complete the application form (Refer Form No. CBEBBFOOS) and ensures that the applicant choose the right type of card products based on the eligibility criteria; €. Makes the customer to sign undertaking letter for card application in the presence of the Manager-Branch Business/CSM and should have a witness from the customer's side for blind customers; D. Checks whether the customer already has an account that suits the type of card as per the eligibility criteria; E. Accept customer ID card and make proper identification ‘Before customer registering customer request on the systemy 3 BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 14commercial Bank of Ethiopia F. Enters account number on ‘Payment Card Registration’ Menu at Core Banking System and retrieve applicant's information regardless of where the base branch is; G. Verifies applicant's signature on the application against the information on the system; H. Forwards card application form to Senior Branch Banking Officer- usiness/Scans the application form and terms and conditions in the case of EDRMS system; and 1. Advise the customer to collect payment card when she/he receives SMS message or telephone call. Senior Branch Banking Officer-Business A. Checks fulfilment of all requirements and accurateness of information filled on the application form; B. Verifies that undertaking letter is signed by the customer in the case of blind customer; C. Checks and authorizes card request on the system and D. Forwards the card application form to the Senior Quality management & control Officer/Quality management & Control Manager where the EDRMS system is not implemented. Customer Service Manager A. Reviews and updates the Card request lists on daily basis on the system; and 8. Monitors on-time production and delivery of cards against SDT. 2.1.1.2 Debit Card and PIN Delivery Customer Service Manager A. Collects sealed cards/and? PINs: envelope sent from Card Production & management tegrvat'Hedd office via messenger/courier services; ‘BoB/PR/05/1.0/20 Digital Banking “Frvice; Card.and Online Banking Procedure Page 15rejection on the system; C. Hands over PINs, in sealed envelope, to Senior Branch Banking Officer- Business against signature on PINs delivery register; D. Keep cards in safe custody pending delivery to customers; E. Delivers cards to customers verifying signatures at the back of cards and on the registry of card delivery; F. Performs card-account association on the core banking system up on card delivery to the customer; card-account associations; and H. Balances cards on hand against total cards undelivered report daily. Senior Branch Banking Officer-Business A RecelvesandkeepsPINsinsafecustodyandcontactscustomerstocollectcar dsimmediately after receiving from Customer Service Manager; 8. Delivers PINs to customers against signature on PIN delivery register book; C. Authorizes card-account associated on the core banking system and validating immediately up on PIN delivery to the customer; and; D. Guides the customer practically on how to use the card on the ATM and POS machine and enhance the activation Process in collaboration with Digital Banking Officer, 2.1.2 Pre-paid Card users Recruitment and Delivery i, Personalized Prepaid Card Recruitment Branch Banking/Junior Officer — Front/Digital Banking Officer xf A. Explains the feature and benefit oF reat paste SDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 16Commercial Bank of Ethiopia G E. Fi Assists the customer to fill the card and fund loading application form (Refer Form No.CBEBBFOOS)after explaining the types and value of prepaid card; Checks for presentation of required documents as per the requirement and the NBE Directives, especially for international prepaid card; Collects cash from the customer or debits the customer account. If the card is international prepaid card, he/she shall collect foreign currency in USD/GBP/Euro or transfers from the customer’s FCY account into the pool account; and Informs the customer to check the account balance and forwards all pertinent documents to Customer Service Manager-Service to forward the request to Manager-Card production & Management. Customer Service Manager A Receives all pertinent document from Branch Banking/Junior Officer ~ Front/Digital Banking Officer; Checks the approval of the FCY for uploading to international prepaid cards from International Banking Back Office; Confirms collection of funds/credit of pre-paid pool accounts and proper completion of application forms; Prepares applications summary and forwards to Manager-Card Production & Management for card production; Delivers cards to the buyer/customer and forwards all pertinent documents to Senior Quality Management and control/Quality Management and Control officer for checking and Documentation; and Monitors the balance-on pre-paid pool accounts on daily bases. BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 17Commercial Bank of Ethiopia Non-personalized Prepaid card Branch Banking/Junior Officer - Front/Digital Banking Officer A. Explains the features and benefits of non-personalized pre-paid cards to customers; B, Sales non personalized pre-paid cards using sales form to the customer and guides the customer in completing the form; C. Collects cash or debit customer's account for sum equivalent amount of the value of the card; and D. Forwards non personalized pre-paid card sales form and deposit advice to Customer Service Manager Customer Service Manager A, Request non personalized prepaid cards in different denominations by writing a letter to Card Production & management Unit at Head Office; 8. Collects the non-personalized pre-paid cards and PINs from Card Production & management Unit at Head Office in sealed envelope and keeps the cards under his/her custody and forwards non personalized pre-paid cards PIN to Senior Branch Banking Officer-Business; C. Keeps non personalized pre-paid cards under his/her custody with list of prepaid cards received from Card Production & management team; D. Receives and authorizes non personalized pre-paid card sales form/application form/ and deposit advice from Branch Banking/Junior Officer - Front; E. Delivers non personalized pre-paid card to the customer after getting signature of the customer on the pre-paid card register book and forward to Senior Branch Banking Officer Business; and F, Monitors the balance of non- personalized’ bp BARNROO| accounts. ea): ‘BDB/PR/05/7.0/20 Digital Banking Service; Card and Online Banking Procedure Page 18Commercial Bank of Ethiopia Senior Branch Banking Officer-Business A. Receives and checks pre-paid cards PINs in sealed envelope from the Customer Service Manager and keeps under his/her custody; B. Checks on the non-personalized pre-paid card sales form that the pre-paid card and PIN matches; C. Verifies and delivers PINs to the customer against getting signature of the customer on pre-paid cards and PINs register book; and D. Forwards card sales forms/application form/to Senior Quality management & control Officer/Quality management & Control Manager for documentation. 2.1.3 Cash reloading to existing Prepaid-cards Reloading of pre-paid cards is performed when cardholder request for additional fund in prepaid card by depositing additional fund to the previously created prepaid card. When reloading is requested the following activities should be performed; Branch Banking/Ju 1" Officer - Front/Digital Banking Officer A. Provide the cash loading application form & assists the customer to fill the form; B. Collects sum equivalent amount of money from customer using the cash loading/application form & credit pre-paid pool account maintained at Pre-paid issuing branch; and C. Forwards all pertinent documents to Customer Service Manager. Customer Service Manager Verifies proper completion of cash loading application and loading of the requested amount deposited into branch prepaid pool account; B, Prepares sum of cash loading request; BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 19Commercial Bank of Ethiopia C. Forwards the cash loading request/cash loading application form, summary of the cash loading request and all pertinent documents to Senior Quality management & contro! Officer/Quality management & Control; D. Forwards the verified and authenticated summary of cash loading request with covering letter to Manager-Card Production & Management; and E. Maintain cash loading summary sheet and application for follow up. Manger- Quality management & control/senior Quality management & control officer A. Receives and checks proper completion of all details in summary of cash loading request and deposit made to the credit of pool account; and B, Forwards cash loading application form and cash loading request summary to Customer Service Manager and maintain copy of all pertinent documents for future reference and custody. 2.2 POS service 2.2.1 Merchant Recruitment for POS Service Digital Banking Officer/Branch Banking Officer-sales A. Explains the features and benefits of POS service to the Merchant; B. Recruits eligible merchants; ensures that merchants have maintained an account with CBE or requests opening of bank accounts, both in Birr and other currencies if necessary; C. Requests trade license, TIN number and other required documents as per the requirement; Ensures the merchant puts a stamp on the copy doguments; at¢hes the name \ 2 \i E. Checks the name of merchant on the trade fie stated on the account; 'BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure” Page 20Commercial Bank of Ethiopia F. Guides the merchant's authorized personnel to complete both application forms and contractual agreement; (Refer Form No.CBEBBFO09 and Agreement No.CBEBBAQO3); and G. Attaches the copy documents with the application form and forwards to the Branch Banking/Junior Officer - Front, Branch Banking/Junior Officer ~ Front A, Receives the POS application and relevant documents from the Digital Banking Officer/Branch Banking Officer-sales; 8. Opens an account using the name of the merchant as per the account opening procedure if the merchant doesn’t have an account for his business using his/her trade license; C. Scans the application form and agreement on the EDRMS and gives the original application and agreements to the customer or attaches relevant documents and agreement to the POS application form and forwards to Manager- Branch Business/Customer service Manager. Manager Business/Customer Service Manager ‘A. Forwards list of potential candidate merchants to the Branch Manager for endorsement; B. Receives the approved merchant list from the Branch Manager; C. Checks the merchant application form and verifies the signature on the merchant's application form and contract; Checks merchant's eligibility to maintain foreign currency accounts; E, Signs on the merchant application and agreement form; F. Facilitates training on how to operate POS at merchant's premises; and ers POS to merchant after signing the delivery form (Refer Form No. CBEBBFO10), and forwards documents to Senior Quality management and control officer/Quality management and control officer. Pett aes ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 21Commercial Bank of Ethiopia Branch Manager A. Receives and reviews the list of potential candidate merchants from the Manager- Branch Business/Senior Branch business officer; Forwards the selected potential candidate merchants list to Digital Banking ‘ for approval; and Supply of POS machine and creation of terminal ID for the merchant POS. 2.2.2 Deployment of POS Machine Manager Business/Customer Service Manager A Requests the District Digital Banking Manager for subscription of ADSL data line/wireless data connection; Authorizes terminal IDs associated with the merchant account on core banking system; and Follows-up placement of POS machine by Digital Banking Officer/Branch Banking Officer - Sales at the merchant site Digital Banking Officer/Branch Banking Officer -Sales A. Collects the POS machine from the Digital Banking Manager at District office for placement on the merchant site; Forwards copy of issue voucher to Manager Operation for asset recording and reconciliation; Places the POS machine at the merchant site and test its functionality; Provide handing and taking over form to merchant, get signed by the merchant and forward the signed form to Senior Quality Management and control/Quality Management and control Officer; Provides merchants with user’s guide, signage/sticker; Givesonthejobtrainingstomerchants‘employeesonhowtomanageandoperat ePOSterminals; scary Make the needful follow up for timejyesel emerits financial issues in relation with both international & locdlter BDB/PR/05/1.0/20 Digital Banking Service; Card and Be SAMS Page 22Commercial Bank of Ethiopia H. Provide and ensures timely replenishment of POS receipts; I, Provides any support or POS maintenance service requested by merchants. If the requested support is beyond branch’s capacity; channels the request to the District - IS support/Branch and Digital Banking and Operation Unit; and Visits and reports on merchant's POS performance, level of merchants satisfaction with the POS service, and any other suggestions on the improvement of the service. Manager Operation /Senior Branch Business Officer ‘A. Confirms taking over of the POS on the oracle system; and B. Register/updates the fixed asset list of the branch accordingly. Senior Branch Banking Officer-Business A. — AssociatesthePOSterminallDwiththemerchant’saccountonthecorebanking system Digital Banking A. Receive and verify the validity of the documents forwarded from branches for TID request; B. Check and compile the business type of the merchant and forward both the Excel list and the signed and stamped cover letter to regional digital banking office for approval of the TID request; C. Receive the newly created TID from regional digital banking and configure the respective merchant POS; D. Inform branches the requested TID is created and associated with merchant POS; E. For USD terminal requests receive copy of renewed National Bank permit to operate foreign exchanges: ind,other required documents; F. Deliver POS machj the respective branch by registering the serial number, ‘BDB/PR/05/1.0/20 Digital Banking Service; Card dnd Online Banking Procedure Page 23Commercial Bank of Ethiopia G. Follow up the deployment and functionality of the POS terminal; H. Upload/upgrade software application to POS terminal by collaborating with district IT; and ‘ Inform branches the requested TID is created and associated with merchant POS, Digital Banking Service A, Receive verified TID request from districts; B. For USD terminal requests receive copy of renewed National Bank permit to operate foreign exchanges and other required documents; C. Check and approve the business type of the merchant and forward the request to IS for TID creation; and D. Receive the newly created TID from IS and forward to district. 2.3 Merchant Registration for Special POS Service 2.3.1 Manual card entry Transaction Authorization Manual card entry Is used for when the card is physically not present, or if it is easier to enter in the card information manually. It is the practice within the banking industry of verifying electronic transactions initiated with a debit or credit cards. Digital Officer/Branch Banking Officer - Sales Receive applications from merchants requesting manual card transaction services, submit list of eligible merchants to Branch Manager/ Business Manager; B. Advice merchant to fill& sign on the manual card entry contract; C. Verify and confirm details on manual card entry contract & forward to Senior Branch Business Officer for further checking; Enable merchant's POS terminals for manual card entry transactions; E. provide training to merchants’ employees;ana-?** inated “byctierchant with specific 3 (% F. Grant/deny access to specific user password. "Page 24Commercial Bank of Ethiop Senior Branch Banking Officer A. Checks details on the manual card entry contract & deliver to Branch Manager. Branch/Business Manager A. Review & forward merchants list to Manager Digital Banking/District Director; B. Forwards the decision to Digital banking Officer/Branch Banking Officer ~ sales to proceed as decided; and C. Review & sign the contract on behalf of the Bank & submit one copy of the application, contract agreement & other documents to Senior Quality management & control officer/Manager- Quality management & control for checking and documentation; D. Provide written authorization to IS officer at Digital Payment Reconciliation to enable merchant's POS terminals to process manual card entry transactions; and E. Follow up confirmation from Manager - Digital Payment Reconciliation. District Director/Manager Digital Banking A. Review merchant's list; recommend & forward the recommended list of merchants to Digital Banking Service for approval; and B. Communicate the final approved/declined list of merchants to the Branch manager for next course of action. Director ~ Digital Banking Service A. Review the requested merchant's list & approve/decline; and B. Communicate the approved/declined list of merchants to the District Director. Manager ~ Digital Payment Reconciliation A. Confirm Completion of manual authorization registration to Manager- Customer ‘Centemyith a copy to requesting branch. \ @ Le BDB/PR/05/1.0/20 Dighat Bahkcing Service; Gad fiand Online Banking Procedure Page 25Commercial Bank of Ethiopia 2.3.2 Voice Transaction Authorization Voice Authorization is a security measure used by the credit card industry to ensure that a particular purchase is being authorized by the actual card- holding customer and not someone else. When a Voice Authorization is initiated by the cardholder's bank or the merchant account provider, the customer receives a telephone call used to verify that the customer is the one making the purchase. Digital Officer/Branch Banking Officer - Sales ‘A. Receive applications from merchants requesting Voice authorization services; B, Submit list of eligible merchants to Branch Manager/ Business Manager; C. Advice merchant to fill & sign Voice authorization contract; and D. Verify and confirm details on the contract agreement & forward to Senior Branch Business Officer for further checking. Ser 1 Branch Banking Officer ‘A. Checks details on the voice authorization contract & deliver to Branch Manager. Branch/Bu: ess Manager A. Review & forward merchants list to Manager Digital Banking/District Director; B. Forwards the decision to Digital channel Officer/Branch Banking Officer ~ sales to proceed as decided; and C. Review & sign the contract on behalf of the Bank & submit one copy of the application, contract agreement & other documents to Senior Quality management & control officer/Manager- Quality management & control for checking and documentation; . Provide written authorization to 1S officer’,at' Digital Payment Piet voice %, So) 2 Page 26 Reconciliation to enable merchant's P¢ authorization transactions; andCommercial Bank of Ethiopia E. Follow up confirmation from Manager ~ Digital Payment Reconciliation. District Director/Manager Digital Banking A. Review merchant's list; recommend & forward the recommended list of merchants to card and online banking for approval; and 8. Communicate the final approved/declined list of merchants to the Branch manager for next course of action. Director - I Banking Service A. Review the requested merchant's list & approve/decline; and B. Communicate the approved/declined list of merchants to the District Director. Manager ~ Digital Payment Reconcilial A. Confirm Completion of voice authorization registration to Manager- Customer Contact Center with a copy to requesting branch. 2.3.3 Corporate POS merchant's management POS merchants identified as corporate and reside in Addis Ababa shall be managed by Digital banking service at regional Offices. Manager - Card and Online Ban! A. Assign corporate merchants to Digital Banking Officer for his/her management; B. Reviews guideline upon launching of new/update of existing product/service and approve it; C. Reviews assessed gap and perforitiance and works to improve the performance and gap; and ; BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 27Commercial Bank of Ethiopia D. Forward unresolved issues/cases to Director ~ Digital Banking Service for escalation/deliberation and perform accordingly as per the direction provided by the Director. Digital Banking Officer - Card Banking A. Visit & support Corporate Merchants regularly; B. Make sure that all issues are being handled properly; C. Deals with Corporate Merchants on behalf of the bank towards any card related request and liaison with the concerned organ of the Bank; ‘Actively Participates on seasonal campaigns organized at Merchants sites; E. Prepares user guideline upon launching of new/update of existing product/service to corporate merchants and forwards to Manager card and online banking; F. Conduct gap assessment on the follow-up scheme and performance of Corporate Merchants; G. Conduct performance assessment on ATMs deployed at Corporate Merchants; and H. Prepares periodic trend analysis report and forwards to Manager Card and online banking. e Se 2.4 Mobile Banking Ser ig Any customer can request mobile banking service at any of CBE branches. Branch Banking/Junior Officer — Front/Digital Banking Officer Explains feature and benefits of the mobile banking service to the customer; B. Sales Mobile banking services to new or existing account holders; C. Makes the customer to fill and sign on the apptigation, terms and ae conditions forms; (Refer Form No.CBEBGEO Conditions form No. CBEBBTC001); atid Terms & ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 28Commercial Bank of Ethiopia D. Identifies the customer and verifies the signature on the application form against the signature on the system; E. Registers the customer record on the system or amend the customer record if it is existing; F. Scans the signed application form, attach to the customer record on the EDRMS system and gives back the original to the customer or forwards application to Manager- Quality Management & Control/senior quality management & control Officer. Customer Service Manager/Senior Branch Banking Officer-Business ‘A. Checks the customer information is correctly inputted on system; B. Authorizes Mobile Banking User's ID in Unauthorized Mobile User List in the system; CC. Subscribesmobilechannelsonthesystemdependingonthepreferenceofthecus tomer; D. Produces/view activation code from the system and delivers/provide to the customer in written form/verbally; and E. Assists the customer on how to operate using his phone to make the status active in collaboration with Digital Banking Officer. 2.5 Internet Banking Service Selling Branch Banking/Junior Officer - Front/Digital Banking Officer A. Explains the features and benefits of internet banking service to the customer; B. Recruits potential individuals/organizations for personal and Corporate Internet banking services, respectively; C. Receives official letter of request for corporate Internet banking service which clearly state the name of authorizer, in-putter and administrator; D. Makes the customer sign on the application forms and Internet banking BBFOOS and Terms & co terms and conditions.(Refer Form Page 29Bank of Ethiopia Identifies the customer and verifies the signature on the application form against the signature on the system; Registers the customer record on the system or amend the customer record, if it is existing; Scans the application, attaches to the customer record on the EDRMS system and give back original to customer or forward to Senior Branch Banking Officer; and Register Internet banking profile on T-24 system using proxy service arrangement, user arrangement ID and User ID for corporate Internet Banking users AND service arrangement and user ID for personal Internet Banking users. Senior Branch Banking Officer-Business A Check whether all pertinent fields on the application form are filled and completed; Checks and authorizes Internet banking users in the system and defines signatory mandate and user privilege (for Corporate internet banking users only) by checking all requirements and the details in the application; Delivers the internet banking User ID and User Manual/Guide to the Corporate customer/user; Inform the Internet banking users as tokens are used for activation and transaction authentication and advice to download soft tokens (smart phone and PC) from market place or from Internet banking official website/portal or issue hard token to the customer and forwards user guide for first time registration or enrollment; and In case of hard token, deliver the pocket token and user guide to the customer/users against signature on register-book Aiden Ca an BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking ProcedureCommercial Bank of Ethiopia 2.6 Transaction Checking and Document custody Senior Qual Control Officer management & control Officer/Quality management & A. Checks all digital banking channel's registration application (Card, POS& online banking) to ensure accuracy of details and fulfillment of required documents on scanned documents on EDRMS system or physical document with-in the same date; B. Check the properness of POS handing and taking over to merchants, the associated account belongs to merchant or not and whether the POS machines are recorded as branch asset or not; C. Ensures delivery of the original application form to the customer after scanning where EDRMS is implemented; D. Keeps custody of digital banking channels application forms and other relevant documents under his/her custody where the EDRMS system is not implemented; E. Checks the balance of PINs and Cards and reports any discrepancy on her/his regular stock management report to the Manager-Quality management & Control/Branch Manager; and F, Identifies and reports discrepancies, if any, found in the selling of digital banking channels to the Manager -Quality management & Control/Branch Manager on a daily basi ‘BDB/PR/0S/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 313 Commercial Bank of Eth PART THREE COLLECTION Collection 3.1 Collection through POS Digital Banking Officer/Branch Banking Officer- Sales A Monitors the branch’s POS and ATM machines placed at merchant sites for regular functionality in relation to collection and resource mobilization; Assists the merchant's cashiers in operating the machine while the customers are using their cards on POS; Provides brochures, user guideline, stickers and location identifiers by requesting Manager-Digital Banking ; and Compiles visit reports and escalates problems on POS and ATM machines to Manager- Branch Business/Customer Service Manager for immediate solution Branch Banking /Junior Officer - Back at Reconciliation A. Ensures transfer of foreign currencies maintained in depository account to merchants’ Birr/Retention accounts on daily basis, as per Foreign Currency Retention directive of the supervisory authority (NBE); Forwards a ticket made for foreign currency transaction processed by POS terminals to Branch Banking/Junior Officer - Back to transfer the FCY transaction to the retention accounts of the customer; Produce adjustment tickets, if any, and forward to Branch Banking Business officer - Back or Digital payment reconciliation unit, for the case may be, for posting the adjustment entry; and Consistently monitors retention “B” accounts of customers and forward fund transfer tickets to Branch Banking/Juniog Officer, — Back to transfer ig ofner after 28 days fed into local currency accounts of the cor of the first transaction. ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 32Commercial Bank of Ethiopia Branch Banking/Junior Officer - Back A Receives the foreign currency transaction tickets made for transactions processed by POS terminals from Branch Banking/Junior Officer - Back assigned at Reconciliation and transfers to retention accounts (A and B); Transfers the FCY amount maintained in retention B account to the merchant's Birr account after every 28 days by applying the prevailing rate; Receives adjustment tickets from Branch Banking/Junior Officer - Back assigned at Reconciliation and post on the core banking system; and Forwards tickets to the Senior Branch Banking Officer-Business for further checking and authorization. Senior Branch Banking Officer -Business A. Receives the transactions from Branch Banking/Junior Officer ~ Back and ‘checks the completeness of the transactions on the system; and Authorizes the transactions and forwards the document to the Senior Quality management & contro! Officer/Quality management & Control Manager for checking and documentation 3.2 Collection through ATMs Digital Banking Officer/Branch Banking Officer- Sales A. Monitors ATM machines for regular functionality in relation to collection and resource mobilization; Assists customers in operating the machine while depositing using the ATM; Provides brochures, user guideline, stickers and location identifiers by requesting Manager- Digital Banking ; and Escalates problems on ATM machines to Manager- Branch Manadétfor immediate solution. ce | ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 33Commercial Bank of Ethiop Branch Banking/Junior Officer — assigned at Reconciliation ‘A, Extract/download reports form ATM switch, core banking and ATM system every other day; B. Check the completeness and appropriateness of all transaction; C. Balance the cash in ATM machine every day; and D. Produce adjustment tickets and forward to Branch Banking Business officer ~ Back or Digital payment reconciliation unit, for the case may be, for posting the adjustment entry. Branch Banking/Junior Officer - Back A. Receives adjustment tickets from Branch Banking/Junior Officer - Back assigned at Reconciliation and post on the core banking system; and B. Forwards the transaction to the Senior Branch Banking Officer-Business for further checking and authorization. Senior Branch Banking Officer -Business A. Receives the transactions from Branch Banking/Junior Officer ~ Back and checks the completeness of the transactions on the system; and B. Authorizes the transactions and forwards the document to the Senior Quality management & control Officer/Quality management & Control Manager for checking and documentation 3.3 Collection through Online Channels Digital Banking Officer/Branch Banking Officer-sales ‘A, Demonstrates how to use mobile and internet banking on how to receive payment from their customers (24/7/365); B. Gives user guideline to the customers ‘on how to operate the service Net . aN independently; *«Commercial Bank of Ethiopia C. Refers customers to reset their password to Senior Branch Banking Officer ~Business at branch premises or guides them to contact customer contact center using 951. Customer Service Manager A. Monitors the system transactions daily and creates awareness to all team members about alternative channels; B. Checks the functionality of the channels and if there is a problem, escalate to Internal Customer Help Desk at call center; C. Encourages all team members to create awareness for customers on alternative channels; D. Creates customer awareness to monitor his/her account online and to review monthly statement on a regular basis when issuing debit card; and E. Informs the customer to report any suspicious or unauthorized transactions activity when discovered, Branch Manager A. Receive entry adjustment requests from customer; B. Request the customer to present undertaking letter; C. Fill stop payment/debit restriction on credited account for the amount equal to adjustment requested; D. Communicate credited account holder and request him/her to present written letter of consent for adjustment of entry credited; and E. Approve adjustment requested and forward to Branch Banking Officer - Back assigned at reconciliation for processing. Branch Banking/Junior Officer - assigned at Reconciliation A. Receive approved customer's entry adjustment request from the branch Manager along wit} rtinént dcuments; BDB/PR/05/1.0/20 Digital Banking Service: Gard:and Online Banking Procedure Page 35 i ieCommercial Bank of Ethiopia B. Produce adjustment tickets and forward to Branch Banking Business officer ~ Back for posting the adjustment entry. Branch Banking/Junior Officer - Back A. Receives adjustment tickets from Branch Banking/Junior Officer ~ Back assigned at Reconciliation and post on the core banking system; and B. Forwards the transaction to the Senior Branch Banking Officer-Business for further checking and authorization. Senior Branch Banking Officer -Business ‘A. Receives the transactions from Branch Banking/Junior Officer ~ Back and checks the completeness of the transactions on the system; and B. Authorizes the transactions and forwards the document to the Senior Quality management & control Officer/Quality management & Control Manager for checking and documentation 3.4 Transaction Checking and Custody of Documents in Collection Senior Quality management & control Officer/Quality management & Control Officer The Senior Quality management & control Officer/Quality management & Control Officer shall perform the following activities in relation to collection process: ‘A. Receive all the source documents from the performers for all transactions completed in a specific business day as soon as the transaction completed; B. Check the correctness and the completeness..of the all collection ystent Se sgine date; a the number of documents and posting transactions in the C. Ensure that all the received number of transactions processed on the system ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking-Proceddre Page 36Commercial Bank of Ethiopia Check self-reversed and deleted transaction made by performers by extracting the log report from NG screener; Identify and reports discrepancies, if any, found in the collection process to Manager -Quality management & control daily/Branch Manager; and Keep custody of documents related to. collection process where EDRMS oe system is not implemented, at BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 374 Commercial Bank of Ethiopia PART FOUR PAYMENT PAYMENT 4,1 Payment through POS Cash Advance Branch Banking/Junior O1 A er - Front Receives the card and the ID card to ensure the presenter is proper card holder; Inserts/swipes the card to the POS chip/reader slot and keeps the card until completion of the entire transaction; Requests the customer to enter PIN (personal Identification Numbers) for validation, if POS terminals request PIN; Prints the transaction receipts in two copies, one for the customer advice and the other for branch source document; Requests the customer to sign on the receipt produced by the POS Terminal; Identifies the CBE card holder customer by verifying the signature against the customer's account on the system or the international card holder customer by verifying the signature against signature signed previously at back of the card; Retains single copies of the signed receipts as source documents for cash payments; ‘Attaches the copy of cardholders’ passport/ID for all international cards; Forwards the receipt to the customer as evidence of the transaction and pays cash; Prints the daily summaries for local and detail reports (for international transactions) using POS Terminals; * ¥.« io Balances the cash advan@& récci 6S total with daily summaries and detail reports; and Cs BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 38Commercial Bank of Ethiopia L. Sends the batch and settle daily POS transactions and balance his/her cash and forward tickets to Senior Quality Management and Control/Quality Management and Control Officer for checking and documentation. Branch Banking/Junior Officer ~ Back assigned at Reconciliation A. Ensures that the POS cash advance accounts day end balance is zero; if not, makes appropriate adjustment at the end of the day; B. Settles the discrepancies by debiting/crediting POS cash advance accounts and cardholders Accounts for domestic card transactions; and C. Settles issues created in relation with international card holder transactions in consultation with Digital Payments Reconciliation Unit by submitting supportive documents. 4.2 Payments through ATM& Online Banking All payments at ATM and using online banking do not need direct involvement of the bank employees. However, the following shall be made at a minimum at each branches. Digital Banking Officer/Customer Service Manager ‘A. Educates the customer to monitor his/her account online and to review monthly statement on a regular basis when issuing debit card; B. Informs the customer to report any suspicious or unauthorized transactions activity when discovered; and C. Aware the customer to immediately check e-mail/SMS alerts sent in relation to payment transaction from his/her account, Branch Manager ‘A. Receive entry adjustment requests from customer in relation with online banking payments; ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 39_Commercial Bank of Ethiopia C. Fill stop payment/debit restriction on credited account for the amount equal to adjustment requested; D. Communicate credited account holder and request him/her to present written letter of consent for adjustment of entry credited; and E, Approve adjustment requested and forward to Branch Banking Officer ~ Back assigned at reconciliation for processing. Branch Banking/Junior Officer — assigned at Reconciliation A. Extract/download reports form Switch, core banking and ATM terminals every day, reconcile all ATM transaction as per the SDT and adjust any incomplete/wrong transactions accordingly and on time; B. Receive approved customer’s entry adjustment request from the branch Manager along with pertinent documents for online banking transactions; C. Produce adjustment tickets and forward to Branch Banking Business officer - Back for posting the adjustment entry or Digital payment reconciliation unit for international and other bank related transactions. Branch Banking/Junior Officer - Back Receives adjustment tickets from Branch Banking/Junior Officer - Back assigned at Reconciliation and post on the core banking system; and Forwards the transaction to the Senior Branch Banking Officer-Business for further checking and authorization. Senior Branch Banking Officer -Business ‘A. Receives the transactions from Branch Banking/Junior Officer - Back and checks the completeness of the transactions on the system; and B. Authorizes the transactions and forwards the document to the Senior Quality management & control Officer/Quality management & Control Manager for checking and docu} te ‘BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 40Commercial Bank of Ethiopia 4.3 Transaction Checking and Custody of Documents Senior Quality Management & Control/Quality Management and Control Officer The Senior Quality Management & Control Officer/Quality Management & Control Officer shall perform the following activities in relation to document checking in payment process: A. Receives all the payment source documents from each officers as soon as the transaction is completed; 8. Checks the correctness and the completeness of the payment documents and posting transactions in the system; Ensures that all the received number of tickets are agreed with the number of transactions processed on the system; and Files and keep the documents for further reference under her/his custody where EDRMS system is not implemented. BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 415. Transaction and Chec PART FIVE TRANSACTION AND CHECKING LIMIT ig Limit 5.1. Transaction limit on payment Cards Transactions limits per Se day( Birr/USD) Associations F TyPe Of) card lists AT™ POs Cards Target Fund Cash customers Cash | transfer| Advance PUrch? © ‘All domestic _| As per the eligibility : SIP) 40,000] 200,000 | 100,000 | 500,00 classic cards criteria per Lara 15,000 | 300,000 } 150,000 | 700,000 Gold Card Customers L pepit | Domestic Sain Platinum 20,000 | 400,000 | 200,000 | 1,000,000 Cards Customers | card L International] ay grayeiers | uspao0| UP! Ard | yep agg | Upto card Classic card limit lirnit | Business travelers, International) — exporters, FCY usp | Upto card] yeni) Urto card Gold Cards | Diaspora account | 1000 tint limit holders Corporate International customers, Prepaid | Platinum exporters, Fey | SD | UPIP@Td| Usoisog] PtP cad cards Cards Diaspora account holders Thani ‘Anyone who gets CBE President | No limit} No limit | No timit | No tim Cards Approval Wallet & Gift Up to . Up to Card] Up to Card) Up to Ci d rd L 9, Cards vee cere vee | ae Limit Limit Limit 'BDB/PR/05/1.0/20 Digital Banking Service: Card and Online Banking Procedure Page 42Commercial Bank of Ethiopia 5.2.Transaction limit on Online Banking Channels (MB&IB) Type of channel Transaction I it per day Per transaction Per day Transactions Mobile Banking Upto200,000 Up to Birr 1,000,000 Internet Banking ~Personal Upto500,000 Up to customer limit proposed by Internet Banking — Corporate Limits proposed by the customers on the corporate IB Application. 5.3. Transaction and Document Checking A. Channels S.] Product | Transaction/Do | Type of Time of | Responsible |___Report o cument to be | checking and | checking | performer Source checked Transaction Checking Limit Registration of Post within 5 | MQMAC/SQM | 124/BI NGI MB,IB, and Card | checking/all_| minutes | AC/QMACO | Screener Transactions on | 324/68 MB,IB and POS to Within | MQMAC/SQM | ING] report suspicious | Reporting /All | 24hours | AC/QMACO | Scree transactions ner Card and | Registration of Post Within 5 | MQMAC/SQM | 124/BI CBE 1 | online | Pos" checking/All minutes] AC/QMACO i Banking Channels |Request for Changes famenciments 09) pre. checking pottenrecsial followed by | Within § | MQMAC/SQM | 124 IBI a Post checking | minutes | AC/QMACO | NG| screener (Name, address, ial telephone number, and any ’ records) e 'BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 43Commercial Bank of Ethiopia PART SIX BOOK MANAGEMENT Book Management 6.1. ATM Balancing and Reconciliation 6.1.1,Reconciliation of CBE Cards Transactions Branch Banking/Junior Officer - Back assigned at Reconciliation ‘A, Imports/dawn load reports from card payment system (switch), Core banking system (T-24) and ATM terminal (EI) on a daily basis; B, Reconciles and balances the previous day ATM transactions on next day; Prepares adjustment tickets, if any, and forwards to the Branch Banking/Junior Officer - Back for the necessary transaction posting and adjustment; D. Reviews and requests support from Digital Payment Reconciliation at Head Office for all un-reconciled items which are found to be difficult to trace if any; and E, Keeps the reconciliation documents under his/her custody for future reference. Branch Banking/Junior Officer - Back A, Posts adjustment entries on the system; and B, Forwards the source documents to Manager Operation/Customer Service Manager for authorization. Manager Operation/Customer Service Manager A. Checks there conciliations performed as-per the Service Delivery Time; - +9, 8. Authorizes adjustment transactiofis%ahd makes continuous follow up on e settlement of claims/susp. €ouints \and forward the source BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Béiiking Procedure Page 44Comme cial Bank of Ethiopia document to Senior Quality Management and Control/Quality Management and Control Office for checking and documentation; and C. Ensures timely resolution of irregular transactions, 6.1.2.Recon lation of Other Bank Card Transactions Branch Banking/Junior Officer - Back assigned at Reconci ion A. Imports/dawn load reports from card payment system (switch), Core banking system (T-24) and ATM terminal (EJ) on a daily basis; B. Reconciles and balances the previous day ATM transactions on next day; C. Prepares adjustment tickets ,if any, and forwards to the Branch Banking Officer-Back to post the transaction; D. Reviews and requests support from Digital Payment Reconciliation at Head Office for all un-reconciled items which are found to be difficult to trace if any; E. Adjusts irregularity of other bank card transactions either debiting Account Receivable or crediting Account Payable adjustment and refund account for cash shortage or excess respectively.; Communicates to Manager - Digital Payment reconciliation at Head Office through letter accompanied with adjustment Credit/Debit tickets for further action; G. Follows proper adjustment made by the respective organ on the specified cases as per SDT; and H. Keeps the reconciliation documents under his/her custody for future reference, Branch Banking/Junior Officer - Back A. Posts adjustment entries on the system; and B. Forwards the source document janager-Operation / Customer Service Manager for authorization. a BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 45‘Commercial Bank of Ethiopia | Manager Operation /Customer Service Manager A. B. Monitor whether the reconciliations is performed as per the Service Delivery Time; Authorizes adjustment transactions, makes continuous follow up on settlement of claim/overdrawn accounts and forward the source document to Senior Quality Management and Control/Quality Management and Control Office for checking and documentation; and Ensures timely resolution of irregular transactions. 6.1.3.Reconciliation of International Cards Transaction Branch Banking/Junior Officer - Back as: A. ned at Recon Imports/dawn load reports from card payment system (switch), Core banking system (T-24) and ATM terminal (EJ) on a daily basis; Reconciles and balances the previous day ATM transactions on next day; Prepares adjustment tickets, if any, and forwards to the Branch Banking/Junior Officer ~ Back to post the transaction; Reviews and requests support from digital Payment reconciliation at Head Office for all un-reconciled items which are found to be difficult to trace if any; Adjusts irregularity of International card transactions either debiting Account Receivable or crediting Account Payable adjustment and refund account for cash shortage or excess respectively; Communicates to Manager-Digital Payment reconciliation at Head Office through letter accompanied with adjustment Credit/Debit tickets for further action; Follows proper adjustment made by the respective organ on the specified cases as per SDT; and Keeps the reconciliation documents under his/her custody for future * ee reference; BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 46Commercial Bank of Ethiop Branch Banking /Junior Officer - Back ‘A. Posts adjustment entries on the system; and B. Forwards the source documents to Manager Operation /Customer Service Manager for authorization. Manager Operation/Customer Service Manager ‘A. Monitor whether the reconciliations is performed as per the Service Delivery Time; E. Authorizes adjustment transactions, makes continuous follow up for settlement of claim and suspense accounts and forward the source document to Senior Quality Management and Control/Quality Management and Control Office for checking and documentation; and B. Ensures timely resolution of irregular transactions. 6.1.4.Reconcil ion of Foreign Cash Exchange at Forex ATMs yr Offi iation Branch Banking/Ju r - Back assigned at Recon A. Checks whether the foreign cash notes exchange transactions occur or not by searching “card-less” transaction on the statement/Electronic Journal; B. Checks whether the foreign exchange transaction is successful or not using the system; C. Records the transaction in equivalent birr amount from ATM cash balance on the reconciliation sheet as a difference until the next day; D. Checks that the respective foreign currency cash account for the ATM is debited and local cash account for the ATM is credited for equivalent amount; E. Communicates the Digital Payment Reconciliation Manager at Head Office for successful transaction but .not. affect ATM cash account for investigation, if any; : BDB/PR/05/1.0/20 Digital Banking Service; Card and Online Banking Procedure Page 47Commercial Bank of Ethiopia F, Follows proper adjustment made by the respective organ on the specified cases and balance ATM cash account; and G. Prepares the adjustment ticket and forwards to the Branch Banking/Junior Officer ~ Back for posting. Senior Branch Banking Officer-Cash ‘A. Collects foreign currency notes from ATM in collaboration with Manager Operation/Customer Service Manager and accompanied with the MQMAC/SQMAC/QMACO as a witness; B. Prepare tickets to post the necessary entry of the foreign currency notes collected from the ATMand passes to Branch Banking/Junior Officer - Front ; and C. Acknowledge receipt of FCY cash by authorizing till transfer from Branch Banking/Junior Officer ~ Front. Branch Banking/Junior Officer ~ Front A. Receive adjustment entry tickets from Senior Branch Banking Office - Cash and post the transaction as per transaction currency type; B. Forward Tickets to Manager Operation/Customer service manager for Authorization; and C. Make till transfer for the amount of FCY purchased at ATM to Senior Branch Banking Officer - Cash immediately after completing transaction posting. Branch Banking/Junior Officer - Back A. Posts adjustment entries on the system; and B. Forwards the source documents to Manager Operation /Customer Service Manager for authorization. Manager Operation/Customer Service, Manager J 2 We Sa med as yer the,Service Delivery Time; - A) * « ze) 8 B, —“e 'BDB/PR/05/1.0/20 Digital Banking Service; Carl and Online,Bdhicing Procedure Page 48 C. Checks the reconciliations perCommercial Bank of Ethiopia Authorizes adjustment and cash transactions, make continuous follow up on settlement of claims/suspense accounts and forward the source document to Senior Quality Management and Control/Quality Management and Control Office for checking and documentation; and D. Ensures timely resolution of irregular transactions. 6.1.5.Recon ion of deposit transactions on ATMs Branch Banking/Junior Officer - Back assigned at Reconciliation A. Imports reports from card payment system, T-24 and ATM electronic journals (EJ) report on a daily basis, 8. Checks whether the deposit transaction is successful or not using the system; C. Checks that the respective cash account for the ATM is debited and customer account is credited for equivalent amount; D. Communicates the Digital Payment Reconciliation Manager at Head Office for successful transaction but not affect ATM cash account for investigation, if any; E. Follows proper adjustment made by the respective organ on the specified cases and balance ATM cash account; F. Prepares the adjustment ticket and forwards to the Branch Banking/Junior Officer ~ Back for posting. Senior Branch Banking Officer-Cash A. Collects cash notes from ATM in collaboration with Manager - Branch Operation/Customer Service Manager; B. Count the cash note, surrender to table master and Prepare cash adjustment entry ticket and forward to Branch Banking/Junior Officer - Front for posting; C. Acknowledge receipt of cash taken from ATM by authorizing till transfer made form Branch Banking/Junior Officer ~ Front; and Page 49