Collecting Banker and Value Banker : Roles and Duties

What is collecting banker ?

Banks were introduced to us much before. With time, many rules were made or changed. The value of banks has increased a lot. If we compare a bank from ancient times and one from the 21st century, we will find so many differences.

Nowadays, banks provide so many policies to people. Not only this but banks are providing jobs to thousands of people. Earlier, all the transactions were made through cash. Ever since cheques are introduced, transactions have become easier.

In this article, we will be discussing collecting bankers. Well, you might be familiar with this term. If not then a collecting banker is a person who collects or takes different documents, cheques, and drafts on behalf of his or her customer.

In simple words, if you are a collection banker, you have the right to collect various cheques, documents, drafts, traveller cheques, and bills for your customer. A collecting banker does this with the permission of his or her customer. Before collecting any of such things, it is necessary to take permission from the customer.

Commercial Bank : Types and Function of Commercial Bank

Now, you might think that why a collecting banker will do this? Well, if you are doing something, you must get something for it. So, those people who work as collecting bankers charge some amount for collecting the cheques, drafts or documents on behalf of their customers. The amount may differ from one person to another depending upon the work, risks and various other factors.

The roles and duties also vary depending upon whatever rights your customer is providing you. Further in this article, we will discuss the roles or duties of a collecting banker. If a person wants to be a collecting banker, he or she must be trustworthy and honest.

Just think, you will have the right to collect various important cheques and documents of a customer. If these things get into the wrong hands, the customer might get into a serious problem. Therefore, customers must verify the collecting banker before sharing any information. The customers must be aware of the past work experience of the collecting banker. A customer can get this information by investigating a bit about the collecting banker. Once you are sure about them, you may discuss your work with them.

A collecting banker usually works in two ways. Either as a holder for value or agent for collection. When working as a holder for money, the collecting banker gives money to the customer before the realization of the cheque. Yes, through this the customer can get money even before their cheque gets realized. But this can be risky. Sometimes, it may happen that the payment is made to the wrong person or the cheque is having some issues. In such a situation, the collecting banker can face problems since he or she has already given money to the customer.

Therefore, the collecting banker must be very careful in this situation.

Contra Entry : Examples and Types of Contra Entry

Demand Draft : Validity Period Of Demand Draft

Paying Banker : Rights and Duties of Paying Banker

Right and duties of Collecting bankers ?

Some rights and duties of a collecting banker are discussed below:

• Quick clearance of the cheque:

It’s the duty of a collecting banker they must clear the cheque or any other thing given to them for collection. There should not be any delay in this. As a collecting banker, the person should be highly active with their work and responsibilities. They must work actively to avoid any kind of delay during clearance. The customer should not face any issue due to the late clearances of cheques or similar things given for collection.
Assume a situation where the clearance of the cheque is delayed. In such situations, the customer may complain about the collecting banker. Ultimately, collecting bankers can get into problems due to this. Therefore it is important that the collecting bankers keep all information about their customers. Once they receive the cheque, they must clear it within time to avoid any complaints.

• Acts as bailee:

The person working as a collecting banker plays the role of the bailee. He or she has the right to collect the cheque and give the amount to the customer. But this work is risky as well. You might have heard that sometimes, cheques don’t work due to various reasons. In such situations, the collecting banker can get in danger.

That’s why it is their duty to return the cheque to the customer and inform them about the problem. He or she will talk to the customer and tell them about how their cheque is not working. It is also their duty to collect the given amount from the customer.

However, this situation arises only when the cheque is not working. But as we know, prevention is better than the cure, therefore the collecting banker must verify the cheque before proceeding to any next step. This will save the collecting banker from any such situation.

• Collecting cheques without any negligence:

It’s the duty of a collecting banker to collect the cheques without any negligence. Not only this, he or she must not show any negligence while opening another account for the customer. The collecting banker should keep an eye so that no payment is made for a crossed cheque. He or she will have to be active so that no payment is made for a cheque which is crossed. If this happens, again the collecting banker can face problems due to this. Also, while opening any new account, there should be a proper enquiry about the account holder.

The collecting banker must gather all the information about the customer before opening their account. Once all the information and documents are verified, he or she is allowed to open an account for the customer. Once the account is opened and some information regarding the customer is found to be wrong, the collect banker will be in danger. Therefore, it is suggested that the documents must be verified before proceeding to any next step of opening the account for the customer.

What is a value banker ?

Now that we have discussed so many things regarding collecting bankers, let’s talk about the value banker. You might be familiar with this term or maybe hearing it for the first time. Well, a value banker is someone who handles the work related to the selling of bank politics or other such bank products.

But wait, the work of a value banker isn’t just limited to this. They have various other duties which we will discuss further in this article. Earlier, the demand for value bankers was less but nowadays there is a huge demand for value bankers.

Nowadays, all the banks are giving vacancies for value bankers post. This is happening as the need for the person managing all the selling work is increasing. Every year, the banks start new policies. These policies need marketing so that more people get aware of them. This is important for selling these policies.

These value bankers make it easy. They work on strategies so that more and more people buy these policies. Apart from this, these value bankers work on other different things. The salary of a value banker might differ from one bank to another depending upon many factors.

What are the roles of Value bankers Role in ICICI Bank ?

So far, we have been discussing collecting bankers and value bankers. Firstly we started with collecting bankers and discussed their roles and duties. Then, we discussed value bankers and what a value banker does.

But, as already discussed the work of a value banker isn’t just limited to selling bank policies or products. There are several other duties of a value banker. We will discuss those duties in detail. These discussions will clear our all doubts regarding the value banker.

Not, only this but we will talk about the duty of a value banker in ICICI bank. ICICI bank is one of the most trued banks and getting a job is not easy. Wait, that doesn’t mean it’s impossible. You must have all the documents and you must pass all the job criteria. That’s it, you can get the post of a value banker in ICICI bank.

This bank has been serving the public for a long time and therefore ut shares a much strong bond of trust and values with its customers. It also takes care of its staff and has all the necessary rules and regulations needed for a comfortable workspace for staff.

Some duties of a value banker are discussed below:

• Customer handing:

Customers are the priority of the bank and that’s why they need to be treated peacefully. The person working as a value banker must deal with the customers with a calm mind. He or she must listen to the customer’s queries and work to solve them. They might take help from seniors if they feel confused. The person should collect all the cash.

While collecting the cash, he or she needs to be very careful. There should not be any mistakes while collecting the cash. Also, they must be aware of all the financial things during the day to day transactions. Even a simple mistake can lead to a big problem. Therefore, every work should be done carefully. The cash should be kept safe and the value banker should be updated with the financial condition of the bank.

• Managing relationships:

A bank works when it shares a good bond with its customer’s staff and other members. But, every relationship needs some management whether they are personal or professional. Here comes the role of a value banker. He or she has to ensure that these professional relationships are maintained for the success of the bank. They must have good conversation skills so that they can discuss various problems politely and effectively. Not only this but, they have to add new members to this family.

For this, they need to decide on new strategies and techniques to add more people to this professional family. The value banker must meet new people and convince them about the work of ICICI bank. Once, those people get convinced they will join the family themselves. This will ultimately result in the success of the bank. But, this should be a continuous process to reach more and more people.

• Product handling:

A bank has various products like policies, savings, gold etc. These things must be handled carefully. That is what a value banker has to do. This work might look easy but it is very tough to manage this with the rest of the other duties. A single mistake can create a big problem for the value banker. They must be very careful with these things. They must handle the savings carefully as it is one of the important things in a bank.

In ICICI bank, the value banker has to complete all these duties carefully. But what happens when the value banker gets any doubt? No worries, you will be always supported by your seniors whenever you have any confusion regarding any duty. What the value banker must do is just be honest with their work.

• Building relationships:

Earlier we have discussed managing relationships. But sometimes the policies of a bank need marketing. It is important that people get aware of the bank policies so that they think of buying them. This is the duty of a value banker. He or she has to talk with people regarding such policies. They have to clear the doubts of people and make them aware of the pros and cons of a policy. In short, they have to do the marketing of their policy.

In ICICI bank, we have so many policies which are designed for the goodness of our customers. But the customers must be aware of it so that they think of taking these policies. So as a value banker, you must talk with those customers and inform them about how the policies will be good for them. That way, many customers will take our policies. These policies will be helpful for both the bank and its customers.