Inter-Branch Reconciliation (Nov’11) - Banking Diploma Education

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Wednesday, December 11, 2013

Inter-Branch Reconciliation (Nov’11)

Q. Define Inter-Branch Reconciliation (Nov’11).

Inter-Branch Reconciliation: Inter-Branch Reconciliation is an important back-office function for Banks and its significance cannot be more emphasized in today's expanding world of banking. As commercial activities and money involved grow in magnitude, co-ordination between activities of all branches becomes a daunting task. With this in perspective, it becomes important for banks to protect their assets. In case of fraudulent or errors in transactions due to negligence, a good Bank Reconciliation system helps detect them. Once identified, the errors can be rectified or at the very least, short-circuit the progression of losses.

Therefore, it becomes imperative to have an efficient and robust IBR system, which can handle high volume of data with accuracy and also with an inbuilt flexibility to handle exceptions.

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