Chapter 1

Chapter 1

With a view to having additional security to avoid frauds in Demand Drafts, NAFSCOB had constituted a committee to finalise a Cypher Code system which could be used by all the member participant banks under AIMAS.

As trade and business are growing in an unimaginable proportion throughout the country the need for transfer of funds by DDs and other modes have increased manifold. Now is the appropriate time for all the Cooperative Banks in India to effectively popularise this AIMAS Scheme and issue more and more number of DDs under AIMAS.

Under this situation it is also necessary to ensure maximum security in this DD business so that frauds could be effectively avoided. Hence the need for this cypher code system.

1.1.1    Cypher Code System

Under this cypher code system, which will be common for all member participant banks of AIMAS, certain numeric values have been allotted to specific characters of the Demand Draft.

1.1.2    Issuing Bank Key Number

NAFSCOB will be separately advising the “Issuing Bank Key Numbers” fixed by the Federation to all the member participant banks of AIMAS. However, these “Issuing Bank Key Numbers” will be forwarded to the SCBs by NAFSCOB and each SCB in turn will communicate this “Issuing Bank Key Numbers” to each member participant bank of AIMAS in the respective State.

1.1.3    Mode of arriving/working out the Cypher Code

Since any Cypher Code should be a highly secret document which only very few in the bank should know in order to preserve and maintain the secrecy, the method of arriving/working out the Cypher Code, the finalised set of key numbers for calculation of Cypher Code, will be made available by NAFSCOB only to the Chief Executives of each SCB. The SCB in turn will identify one officer per office participating in AIMAS i.e. H.O. and the member branches of SCB. Similarly the Chief Executive of each member CCB and CUB will identify one officer at H.O. and one officer per branch participating in AIMAS. These identified officers alone are to be trained in working out/arriving this Cypher Code both for fixing Cypher Code at the time of issuing DD and effecting transfer of funds through TT and also for decyphering this code at the time of honouring the DDs and crediting inward TT amounts.

1.1.4    Cypher Code - training
Before the date fixed by NAFSCOB for introduction/adoption of this Cypher Code system by all the member banks, the SCBs will have to call for the list of identified officers from member CCBs/CUBs in the respective State and also finalise it’s own identified H.O./Branch Officers and then train them in such a way that ‘identified officers’ are fully conversant with the principles/mode of working out this Cypher Code as well as in decyphering this code. The banks must also impress on such identified officers the need for keeping this as highly confidential matter.

1.1.5    When trained officers go on leave

It is desirable that only limited number of officers are exposed to this Cypher Code System, which otherwise will become a open system and hence whenever the trained officer in the branch goes on leave the following procedure may be followed

(i) Such branches issue DDs without Cypher Code during the leave period of trained officer

                                                 (or)

(ii)  For DDs issued for amounts in excess of Rs.50,000/- consult the H.O. over phone and get the Cypher Code for the particular DD from the identified officer at H.O. and affix it on the face of such DDs issued by the branch.

(iii)  At H.O. of SCB/CCB/CUB if the trained officer goes on leave, another officer of the same cadre to be trained in this Cypher Code system and he/she will work out the Cypher Code for each DD to be issued by H.O. or in the branches where the identified/trained officer of the branch is on leave.

1.1.6    Role of SCB in Cypher Code Operation

It is the primary and essential responsibility of the SCB to identify a senior level officer (AGM/DGM) and train him in the usage of Cypher Code and also arrange through him for training the other identified Branch Officers/Officers of CCBs/CUBs.

The SCB will have to impress upon the member CCBs/CUBs of AIMAS in the State the need for keeping this Cypher Code documentary papers etc. as highly confidential material under effective personal safe custody of the identified officers.