Page 36 - A Banker Down the Rabbit Hole

5. Can a calculator make a mistake

I n banks, there is a practice to check all the clerical work by another

supervisor or an officer so that the possibility of arithmetical
mistakes by the assistant could be detected. There was a system
to attach one officer / supervisor to oversee and check thoroughly
the work of two to three clerical assistants. It was a presumption that
the clerical errors may happen in inputting the figures in ledgers or
calculators while applying interest rate or calculating the interest
amounts. The officer only was held accountable not only for checking
calculation errors, but also for ensuring that the transactions were as per
extant rules of the bank and all mandated processes had been completed
before transactions were authorized under the signature of the officer.

On the fateful day of financial year closing, all the employees were busy
tallying balances to close the accounts for the past year and carry forward
the previous year balances to the new ledger accounts to prepare the
bank's consolidated financial statements. The work was done manually
at that time. It was an unwritten resolve to close the books with accuracy
on the same day, come what may, even if the staff had to work very late
or whole night because the same books of accounts were to be used the
next day after the closing day. The bank remained closed to the
customers for usual business on the yearly closing day. The allocation of
total work was distributed among all the officers and staff members.

The Second in Command issued an office order allocating duties for
closing work. He told me to sign an interest calculation sheet for all
accounts of a ledger that contained largest borrower accounts of the
branch. He told me that he had calculated the interest himself with a

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