CONCURRENT AUDIT REPORT FOR THE MONTH OF June- 2018

NAME OF THEBRANCH :Rajajinagar CODE:119

ZONE:Bangalore North.
PART-III CHECK LIST-AREA OF VERIFICATION
A: CASH MANAGEMENT & SECURITY ITEMS etc.
Sl.No Issues Date of Comments/Observations
. verification
1. Verify daily cash transactions with particular reference to any No abnormal receipts& payments
abnormal receipts & payments. Report cash receipts above 27-06-2018 and structured cash transactions
Rs.50000/- without PAN Numbers. are observed,
Verify whether structured cash transactions in the range of
Rs.45000/- to Rs.49999/- is done on same day so as to avoid
providing Pan Card.
2. Verify expenses incurred by cash payment involving sizeable Verified
amount.(above Rs.10,000/-)

Verify that daily vouchers are properly stitched and kept in Double Yes-Complied
Lock as per procedure.
Report Payment of Bankers Cheque/DD/MT/deposit for Rs.20000/- and
above in cash. No such cases
3. Verify whether proper dual control is exercised at the Branch in the Yes
matter of operation of Double Lock.
4. Carry out surprise checking of cash on hand, Foreign Currencies cash 25-06-2018 Cash verified and found to agree
on hand, physical stock of Gold coins held at the beginning or closure with cash scroll and GL.
of any day during the month and verify whether:
 Cash on hand as per the Cash Reconciliation Statement (CRS),
Cash Scroll and General Ledger tally with the physical cash on hand.
 Foreign Currencies, if any, on hand tally with the Foreign
Currencies register.
 Currency Notes are properly sorted and bundled as per the
Clean note policy of RBI. Yes
 Cut/mutilated currency notes are not mixed up with issuable
notes. Yes-complied
5 Cash Retention Limit (CRL) of the Branch: Rs.50 lakhs.

Verify the cash retentions during month as to whether they have been Cash holdings exceeded on all days.
within the CRL?
If not, no. of days CRL exceeded during the month.
Thirty Days.
If heavy cash holdings are observed at the branch that are not

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 commensurate with the requirements, ascertain the reasons and the Remittances not made regularly.
action taken by the Branch to dispose of surplus cash.
Check whether inward/ outward cash remittances have been properly Complied.
6. accounted for in the insurance register(remittance register) and
amount of cash carried inward/outward is within the permissible
limits as per the guidelines related to security, insurance etc.
7. Verify cash paid cheques/ vouchers and ensure that they are paid in Yes .Verified randomly.
due course/ payment is in order.
8 Counterfeit notes are forwarded to Nodal Bank Officer for submission No such case.
to police station.
9. Register maintained for impounded counterfeit notes (RBI/2013-14/87 No
DCM (FNVD) G-S/16.01.5/2013-14 dated 01.07.2013.
10. Verify & report third party products/Gold transactions/issuance of No such transactions,
DD/PO/ above Rs.50000/- in cash.
11. Verify the total number of Jewel Bags and tally with the total Verified. JL portfolio small
number of Jewel Loans. outstandings in 3 loan accounts ,
balance that has remained after
the auction of the jewels held as
security. Branch is yet to square
off these out standings.

B: DEPOSITS:
Sl.No Issues Date of Comments/Observations
. verification
1. Verify in respect of all kinds of deposit accounts opened during the
previous fortnight whether: June 2018 The branch is holding the AOFs with
 Account opening forms together with requisite papers/ the relevant documents as
documents wherever applicable, completed in all respects, are applicable with due authentication
obtained and held in proper custody which are duly authenticated by expect for those accounts listed in
Branch Manager/ Officials
the pending irregularities.
 Verify whether compliance to implementation of KYC norms
and Prevention of Money laundering & Control is 100% in respect of all
accounts opened during the month.
 Obtaining photographs of depositors and attestation thereof.
Yes
 Verify Photo Identity Proof / Address proof obtained in all
accounts. Yes
 Verify PAN/F60/F61 obtained as applicable.
 Sending “Letter of Thanks” while authorizing the accounts and Yes
monitoring thereof. Yes
 Recording of standing instructions. Yes

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  Records of nomination are properly maintained.
 The stipulated precautions/ guidelines regarding allowing of Yes
operations in newly opened SB and Current accounts are scrupulously June 2018 Yes
observed/ followed.
 Verify cash deposits and withdrawals for Rs. 10.00 lakh and Yes.
above in all deposit accounts as also in other operative accounts, such
as, cash credit and overdraft to confirm the genuineness of nature of Verified
transactions.
 Use of ultra-violet ray machines for cheques/ withdrawal/ DDs
for high value items.
 Large value payments are passed by the Authorized Officer
with due care besides verification of drawer’s signature. In use
 Proper recording of stock of cheque books and issuing of
cheque books and cheque book requisition slip. Whether cheque books Yes
are issued serially. Any issue of cheque books in bulk.
 Specifically scrutinise & comment on the effectiveness of the Yes
measures taken by the Branch in adoption of KYC (Know Your
Customer) norms & steps towards prevention of Money
Laundering(Obtaining required KYC documents and any deficiencies KYC norms are adhered to
noticed)
 Verification of checklist for opening of Savings Bank/ Current
account and comments, if any, should be mentioned in the Annexure
XIII of the report. NIL

2. Inoperative/ dormant accounts are properly segregated and separate Yes

control thereon is exercised. Operation in dormant accounts are
authenticated by the competent authority.
Verify the payment made during the month from inoperative/ dormant
accounts are in order in all respects and are duly authenticated by the
branch head officials/ Manager.
3. Inoperative/dormant accounts notices are being sent as per the No
procedure.
4. Whether Deposits are auto renewed on due date if not closed. Report Yes
deposits that have remained without renewal after 14 days from the
due date.
5. Verify the interest paid in case of premature payment of deposits, Yes
(Interest is to be paid at one percent less than the applicable rate of
interest for the period it has remained with the bank.)
6. Lien on Term Deposits are properly noted when advances are granted Yes
against those term deposits. (Auditor has to verify the paid up value
and balance outstanding in SDL/CCSDL a/cs)
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7. Verify that payment of term deposits of more than Rs.20,000/- to the June 2018 Yes
depositor is done through credit of Current/ SB accounts or by issue of
Banker’s cheque/ demand draft.
8. Verify that deduction of tax at source from interest income on term Complied
deposits is done as per laid down procedure.
10. Verify that TODs in Current/ SB accounts are not allowed frequently Discreetly used.
and overdrawals allowed are within the delegated powers of the
Branch Manager. In case of pending TODs, action taken by the Branch
Manager for regularization may be verified. Also verify whether TODs
are secured by documents.
11. Verify Interest paid on deposits during the previous quarter ended
March, June, September and December respectively as to whether the
interest is correctly paid and maturity values correctly calculated at
the prescribed rates as applicable to the category and term of
deposits.
 Check the transactions about deposits received, repaid, and
any exceptional payments/Int. Paid debited by the branch without
Yes, Random Verification Done.
prior approval from competent authority.
 Verify whether the branch has implemented RBI prescribed Yes
simplified procedure for settlement of claims of deceased depositors.
 Whether Form No. 15-G and Form No.15-H obtained are
acknowledged through system and the forms are sent to the
jurisdictional Income Tax ward office before 7th of succeeding month. Filed
Note: Seepage of Income and excess payment of interest, if any,
observed vide para (11) above should be reported by means of a
separate report, as per format given in Annexure in Excel sheet.
12. Ensure that no loans and overdrafts are granted at the Branch against No such transactions observed.
fixed deposit receipt issued by other Banks.
15. Verify the entries in the cheque books issued register/s with the
cheque book requisition slip as to;
 Whether the signature of the account holders are verified by Randomly verified.
the Officials;
 Whether the prescribed safe-guard measures and procedures
for issue of cheque books/ cheque leaves are prima facie observed/
followed;
Generally , Yes-Complied
 Whether any cheque book is issued on the strength of
requisition slips not from the previous cheque books issued to the
customer / on the strength of request letters and whether in such
cases, the issue of cheque books are ordered only by the Branch Head.
Due acknowledgement from the account holder is held towards the
issue of cheque books through the messenger.

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  Whether transfer of funds from one account to another
account of the same group of different groups is effected with proper Yes
written authority of the account holder/s.
 List of SB/Current a/cs opened and closed in less than one
year & Term Deposits closed prematurely within one year.
16 Verify whether it is ensured that current accounts of entities which Yes
enjoy credit facilities (fund based or non-fund based) from the
banking system without specifically obtaining a No Objection
Certificate from the lending bank(s) are not opened. (Banking
Regulation Act, 1949).

C: ADVANCES
Sl.No Issues Date of Comments/Observations
. verification
Verify advances (including Bank Guarantees, Letters of Credit, etc.) June 2018
disbursed/ allowed during the month as to:

 Whether appraisal of the proposals sanctioned are proper and Yes

disposed within the prescribed time norms with emphasis on credit
sanction efficacy at Branch level.
 Whether the Branch has complied with the terms of sanction
and Certificate of Compliance of sanction terms are submitted to
Yes
respective sanctioning authority.
 Whether proper loan documents are obtained and whether
securities as stipulated are obtained and charge created on property Yes
/Securities, including Deposits are linked properly in the system.
 Whether legal opinion received is in proper format and all the
original documents mentioned in the legal opinion are held. Yes
1.  Whether mortgage and registration formalities etc. wherever
applicable are complied with.
 Verify details of valuation of securities entered in the system
and ensure valuation is not older than 3 years in case of standard Yes
assets.
 Whether in the case of any advance disbursed beyond the
delegated lending power of the Branch Head, the proposal for
sanction/ratification has been sent to the appropriate sanctioning
authority; whether the Branch Head has obtained prior permission
from the appropriate sanctioning authority to disburse the advance
pending receipt of regular sanction or has he at least now written for
confirmation.
 Whether the sanctions of the advance under discretionary
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 powers of the Branch Head are supported by proper sanction orders. Yes
 Whether the advances disbursed beyond discretionary powers Yes
of the Branch Head are correctly recorded in the prescribed register
and reported to appropriate higher authority. (Connected No such instances.
correspondence, ratification to be verified.)
 Verify whether there is any mis-utilisation of the loans and
whether there are instances indicative of diversion of funds.
 Aberrations, if any, observed in Loan A/cs opened/closed
within one year / sudden closure of Loan accounts within a short No such instances.
period.
 Verify whether Term loan disbursement is made directly to the
dealers/ suppliers. Yes
 Verify whether loan application entries in respect of retail
loans are made in LAPS before submission of proposals to Retail Loan Yes
Centers.
 Whether the documents in respect of eligible loan account/
limits have been subjected to Legal Audit, if not, details of such Yes
accounts.
 Whether legal audit of documents is caused in case of loans of
Rs. 50.00 lakh and above before release of the credit limit.
Yes
 If the legal Audit is done, whether the Branch has
satisfactorily attended to the observations made in the Legal Audit
report before disbursing the loan.
 In case, any eligible account is not subjected to Legal Audit,
whether the Branch has taken steps to get the documents subjected to
Legal Audit by the Bank’s Law Officer/empaneled advocate. Yes
 Whether linking of the account to Base Rate and entry of
appropriate spread is done in the system. In case of any mistake,
please quantify short / excess collection of interest and report in the Yes
Seepage of Income annexure.
 Credit rating from external credit rating from the approved
agencies are obtained for facilities above Rs.5.00 crore wherever
applicable. Yes

Verify operations allowed in advances accounts as to: Yes

 Whether they are within the sanctioned limits/ drawing power
(worked out as per the latest stock / book debts statements)
2.  Whether operations in the accounts reveal any unhealthy
features such as heavy withdrawals in cash suggestive of diversion of No such unhealthy features
funds for purposes other than the declared business of the borrowers, observed.
diversion to sister/ associate concerns enjoying credit facilities with
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 the Bank, diversion of funds to other banks, kite flying etc., or any
other unhealthy tendencies which may jeopardize the interest of the
Bank.
Note: This work should be done in such a manner that all the
accounts in the Branch are covered at least once over a
period of three months without exception.
3. Verify by surprise, goods pledged to the Bank under pledge loans such No Pledge Loans sanctioned as
as PL, CCPL, PCL (Pledge), etc., giving particular attention to: reported by the Branch.
 Whether the keys (both duplicate & original) of the godown as
recorded in the Pledge Loan Register/ Godown Register are held in the
Double Lock; whether movement of the godown keys have been
properly recorded in the Godown Key Movement Register;
 Whether the goods pledged to the Bank and held in the
relative godown, tally with the description as recorded in the Godown
Register and the invoice, if any, tendered along with pledge letter as
to quantity and value; whether there is adequate movement of the
goods;
 Whether the godown is in order and whether the goods are
properly stored/ stacked in an approved manner;
 Whether the value of goods adequately cover the Drawing
Power/limitin the relative loan account; whether the insurance
against risks of fire etc.; fully covers the value of goods and whether
it is in force.
 Whether the Branch Officials have periodically conducted
godown verification and properly recorded the same in the prescribed
register.
Note: A list of accounts verified by the Concurrent Auditors during
the month should be furnished in the monthly report. The number
of accounts to be taken up for visit during the month may be
regulated in such a manner that all the accounts (PL, CCPL [pledge]
etc.) at the Branch are covered at least once, over a period of
three months.
4. Verify whether in the case of all advances against hypothecation of
goods/ stock/ book debts, etc. [CC (hyp), PCL (hyp), etc.] periodical
statements declaring stock/ debtors etc., as the case may be, are No such cases
received from the borrowers within the stipulated due dates; whether
the statements are properly scrutinised by the branch officials.
Whether penal interest is being charged for delayed submission.
Report seepage of income in Annexure.

 Whether drawing powers have been correctly arrived at and

recorded in the drawing power register; whether in all cases where Yes
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 the statements are not received even after a reasonable time, prompt
action is taken by the branch to get them. (Where the unit is under
compulsory audit, the periodical stock/debtors statement shall be
certified by CA.). Deduction of goods received through LC and unpaid
creditors from the stock, age-wise Book Debt as per sanction terms to
be confirmed.
 Verify to ensure insurance coverage is adequate, Policy held is
valid, coverage of risk is proper, Bank’s name is included in the policy
and entry in the system is updated. Yes
 The Branch Head or any other authorised official of the branch has
regularly conducted inspection of the stocks hypothecated
including verification of the borrower’s books of accounts, whether
the report regarding the inspection are properly recorded in the Yes
prescribed register.
Note: Comment on the reasons for non-submission of statements, if
any, by the borrowers and the action taken by the branchheadin
each such cases.
Conduct unit visits of at least a couple of large borrowers of the To be arranged for this quarter.
branch enjoying limits exceeding Rs.5.00 crore from the Bank, on
5. rotation basis every month, so as to cover all such accounts at least
once in a year. In case, the branch is not having borrowers enjoying
limits exceeding Rs. 5.00 crore, you may select a couple of large
borrowers of the branch on rotation basis every month for unit visit.
{Refer Annexure for the format]

Note: A list of the accounts verified by the Concurrent Auditors

during the month should be furnished in the monthly reports along
with separate report on Unit Visit for each Borrower as per format
annexed.
6. Make a quick review of the loans and advances allowed beyond the To be deleted
discretionary powers of the Branch Head and those allowed in
anticipation/ beyond sanction as to :
 Whether they have been reported to the appropriate
sanctioning authorities for ratification/ sanction; whether they have
been ratified/ confirmed;
 Whether the temporary facilities are regularised or brought to
normal within a reasonable time and also verify the frequency &
genuineness of such exercise of authority beyond the delegated
powers by the concerned officials.
In case of any account declared SMA-02 whether documents are
verified and the securities charged to the Bank are enforceable and

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 comments to be offered account wise
7. Verify whether the Branch has submitted important control returns. Submitted.
Verify whether there are any returns overdue for submission and if so,
ascertain the reasons therefor and steps taken by the Branch Head.
Note: At random, verify the office copies of the returns/ submitted
by the Branch, as to proper and correct reporting of details
therein.
8. Verify whether Acknowledgement Of Debt/ Revival letter obtained in
respects of loan documents that have completed 24 months.
1) 49 Accounts amounting to Rs
1) No. of Pending accounts and total amount involved ( Rs.in Lakh) 443.88 Lacs as per the system
generated report.
2) No. of Time barred accounts and total amount involved.(Rs. In
lakh)
3) 18 Accounts
9. Verify whether there are any credit limits overdue for renewal for Pending accounts listed separately.
more than a month, if so, ascertain the reasons and steps taken by the
Branch; where the credit limits could not be renewed due to willful
default on the part of the borrowers in submission of necessary
papers, ascertain whether the Branch has taken appropriate steps
including charging of penalty.

10. Make a critical analysis and overall assessment of the management of Satisfactory
the advances portfolio at the Branch taking into account sectoral
deployment, credit restrictions, recovery, etc.
11. Verify balance confirmations in respect of over draft and cash credit Not done.
accounts (including TOD) independently by sending a few confirmation
letters on a random basis.
12. Verify every month whether the Branch has correctly Verified
charged/collected interest (including penal/ overdue interest),
Processing charges, service charges, Mortgage charges, inspection
charges, commitment charges, redemption charges, commissions,
discount, etc. on the loans and advances (including Bills purchased/
discounted/ negotiated and acceptances, etc.) at the stipulated
rates and in the stipulated manner.
Note: Seepage of income and short collections of interest, if any,
observed vide para {12} above should be reported by means of a
separate report, as per formats enclosed (Annexure). Carefully
ascertain and incorporate the name & E. No. of the Employee/s and
or officers responsible for the seepage, in the report.
13 Verify whether the following instructions are followed: The noted instructions are
followed.
In terms of Section 20(1) of the Banking Regulation Act, 1949, a bank
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 cannot grant any loans and advances on the security of its own shares.

Section 20(1) of the BR Act 1949 also lays down the restrictions on
loans & advances to the directors and the firms in which they hold
substantial interest.

Section 19(2) of the Banking Regulation Act, 1949 lays down that banks
should not hold shares in any company except as provided in sub
section (1) whether as pledgee, mortgagee or absolute owner, of an
amount exceeding 30% of the paid up share capital of that company or
30 percent of its own paid-up share capital and reserves, whichever is
less.

Section 20A of the Banking Regulation Act, 1949 stipulates that, a

banking company shall not, except with the prior approval of the
Reserve Bank, remit in whole or in part any debt due to it by - (a)
any of its directors, or (b) any firm or company in which any of its
directors is interested as director, partner, managing agent or
guarantor, or (c) any individual, if any of its directors is his partner
or guarantor.

In terms of Section 19(3) of the Banking Regulation Act, 1949, the

banks should not hold shares whether as pledgee, mortgagee or
absolute owner, in any company in the management of which any
managing director or manager of the bank is in any manner concerned
or interested.

Without prior approval of the Board or without the knowledge of the

Board, no loans and advances should be granted to relatives of the
bank's Chairman / Managing Director or other Directors, Directors
(including Chairman / Managing Director) of other banks and their
relatives, Directors of Scheduled Co-operative Banks and their
relatives, Directors of Subsidiaries / Trustees of Mutual Funds /
Venture Capital Funds set up by the financing banks or other banks etc

Banks should not provide loans to companies for buyback of their own
shares / securities.

The banks should strictly adhere to the instructions regarding sharing

of information relating to credit, derivatives and unhedged foreign
currency exposures among themselves and put in place an effective
mechanism for information sharing by end-December 2012. Any

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 sanction of fresh loans/ad hoc loans/renewal of loans to new/existing
borrowers with effect from January 1, 2013 should be done only after
obtaining/ sharing necessary information.

C: i) BILLS PURCHASED/ DISCOUNTED:

Sl.No Issues Date of Comments/Observations
. verification
1. Verify whether bills purchased/ discounted during the month are June 2018 Unhealthy features not observed
genuine trade bills accompanied by Lorry Receipts of approved
Transport Operators or Railway Receipts and whether any unhealthy
features are observed in these transactions.
2. Verify whether any bills purchased/ discounted/ negotiated were No such cases observed.
returned unpaid and if so, whether they are properly dealt with and
reimbursement has been obtained promptly including interest at
applicable rate. Look into the reasons for return of those instruments.
(In case there are frequent returning of bills for huge amounts
pertaining to a borrower, verify the reasons therefor and whether such
cases have been reported to the concerned sanctioning authority)
Verify whether Bills once discounted and returned are not again
discounted.
3. Verify whether proper follow-up of overdue bills for realization is Yes
being carried out.
4. Verify the realization advices adjusted on the previous day and later No such cases
with the Branch Advices/ Drafts in respect of outward bills realized
(purchased/ discounted/ negotiated) for huge amounts (say Rs. 1.00
lakh and above) as to genuineness of the adjustments;
5. Whether in the case of bills purchased/ discounted/ negotiated the Nothing to report
liability is within the sanctioned limits. report on the bills of allied
/sister concerns purchased/discounted without approval from
competent authority
6. Whether any excess drawings/ bills beyond the sanctioned limits/ No
drawing power are allowed and if so, whether the Branch has written
for ratification/ confirmation of the concerned sanctioning authority.
Whether such excesses are under the authorization of the Branch head
and properly recorded in the prescribed register and reported to the
appropriate authorities.
7. Verify whether there are any bills purchased/ discounted negotiated Not observed
outstanding beyond a reasonable period/ beyond due date and found
out any unusual/ unhealthy feature; ascertain reasons for overdues
and whether reported to the concerned authorities in the prescribed
manner

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8 Verify whether any local cheques / DDs are purchased in violation of Nothing to report
extant guidelines.
C: ii) TODs/ OVERDRAWALS:

Sl.No. Issues Date of Comments/Observations

verification
1. Verify temporary overdrawals / excesses in OD/ CC/ Current/ SB June 2018 No. Amount
accounts allowed during the previous day.
TOD and excess allowed beyond the
discretionary powers : Nil
2. Whether they are within the discretionary powers of the Branch Head Separate register not maintained
and recorded in the prescribed register;
3. Whether the overdrawals allowed beyond/ in anticipation of sanction No such cases
as well as those beyond the discretionary power of the Branch head
are recorded in the prescribed register and reported to the concerned
authorities as per prescribed procedure;
4. Whether Temporary Overdrawals are allowed discriminately and Yes
judiciously.

C: iii) LCs / BANK GUARANTEES:

Sl.No Issues Date of Comments/Observations
. verification
1. Whether issue of BGs/LCs are in line with the extant guidelines; June 2018 Yes
 Whether appropriate commission is collected in respect of Yes
fresh/renewed BGs/LCs;
 Whether securities including deposits are linked in system to Yes
BGs/LCs;
 Whether issue of BGs/LCs are reported to Zonal Office. Yes
2. Whether the branch has paid/ met any guarantee obligation under No such instances
Bank Guarantee issued by it; whether reimbursements from customers
have been obtained promptly. If not reimbursed, the reasons.
3. Whether bills paid on the previous day under LC are strictly according NA
to terms of the LC; whether reimbursements have been obtained
promptly.
4. Whether the Letters of Credit issued by the Branch are within the NA
delegated power and they are for genuine trade transactions.
5. Whether correct entries are passed on issued/ expired/ cancelled Yes
Bank Guarantees/ Letter of Credit issued/ expired/ cancelled on the
previous day. Whether BGs are issued under security letter meant for
the same.

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6. Whether there are any Bank Guarantees continuing even after their Verified the System generated
period of expiry; if so ascertain the reasons therefor and whether outstanding BGs, No Expired BGs
steps are taken by the Branch to close them as per stipulated observed.
procedure.

Note: Seepage of Income and short collection of Interest, service

charges, if any, observed should be reported by means report, as
per formats (Annexure)

Branch
C. iv) RECOVERY & NPAs
Sl.No Issues Date of Comments/Observations
. verification
1. Verify whether all eligible loans and advances are brought under June 2018 Yes
ECGC/CGTMSE cover. Whether notice of default or claim as the case
may be, have been lodged with the respective guarantee
organisations at the appropriate time for the loans that have become
overdue/ NPA.
2. Whether the borrowal accounts are classified under the Health Code Classification done properly.
system and verify as to:
 Whether there is any improvement of the Health of particular
account as compared to previous month;
 Whether there is deterioration (slip back) of the Health of any
account compared to the previous month, if so, ascertain the
reasons therefore and steps taken/ proposed to be taken by the
Branch to improve the position.
3. Verify whether the classification of loan assets have been done Classification as per IRAC norms
properly and income recognition norms have been followed as per
procedure. Please refer to the periodical Auto Classification Reports in
Intranet which furnishes the details of mismatches in the asset codes
assigned by auto classification and manual classification.
4. Verify whether all securities charged are valued as per guidelines in Yes. done in operative cases at the
vogue and the securities available are sufficient to cover the time of renewal
outstanding liability including uncharged interest. Please check
whether the securities are properly linked to the outstanding advances
in the core system.
5. Verify whether there is any lapse on the part of the officials in Not Observed.
releasing the security or whether any security is released wrongly.
6. Verify whether there are any borrowal accounts that can be classified NIL
as Potential NPAs, if so ascertain the reasons and analyse the action
taken or to be taken by the branch in the matter. At the end of every

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 calendar quarter (June, September, December and March) identify
potential NPA accounts with limits / balance outstanding of Rs.5.00
lakhs and above and furnish the details in the format given in
Annexures to IAD-HO with copies marked to the Zonal Office & Branch.
However, if there are no potential NPA accounts, a NIL report must
invariably be submitted.
7. Verify whether all liquid assets available are adjusted to the NPA Yes- adjusted.
accounts.
8. Comment on monitoring of A3 borrowal accounts with reference to the A3 accounts are followed up for
A3 borrowal accounts of the branch for previous month. recovery and up gradation.
9. Verify & furnish a list of operative accounts like CC/CMTCC/CVPOD/ Separately shown
CMTRU/CLUCC/ CLUOD/OD where credits in to the account are not
sufficient to cover the interest debited periodically.
10 Verify whether action under SARFAESI act is initiated in respect of all Yes
eligible accounts?
11. Verify & comment whether periodical developments in respect of Suit Not
filed accounts/ cases referred to DRT are entered in the system in
brief.
12. Verify passing of MOC-I during quarterly audit of branches by --------
SCAs/SBAs and MOC-II after receipt of communication from Recovery
Department

HOUSE KEEPING:
I. LOCAL BANK ACCOUNT:
Sl.No Issues Date of Comments/Observations
. verification
1. Verify whether debits and credits to the account of State Bank of No Bank account maintained.
India/ Reserve Bank of India/ Account Section/ Local Branch Account,
as the case may be, are correctly done with reference to the clearing
account figures.
2. Verify whether there are clearing differences in the Branch and if so: NO

 Whether they have been showing an increasing or decreasing

trend;
 Whether there are long pending items in the account and
whether the Branch has taken adequate steps to tally them.

3. Verify the accounts maintained by the Branch with other Banks, No Bank account maintained
including Foreign Banks and RBI as to :

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  Whether statements of accounts have been received and properly
reconciled by the Branch once in a month; If not, furnish the
reasons for non-reconciling the accounts.
 Whether there are items pending adjustment for over a month
and if so, ascertain the reasons thereof and the action taken by
the Branch in respect of each such items.

Note: Obtain statement of accounts and certificate of balances

once in a quarter and independently reconcile it with books of
the Bank.

1. Loans and drawals are not allowed at the Branch against un- Yes-Complied
cleared effects.
2. No fresh cheques are accepted for adjusting the value of Yes-complied
cheques returned in clearing.

II) SUNDRY DEBTORS/ CREDITORS:

Sl.No Issues Date of Comments/Observations
. verification
1. Verify whether there are any entries outstanding for more than one June 2018
month in Sundry Debtors accounts; if so ascertain the reasons Reported Separately. Only the
thereof and action taken by the Branch. Whether the Branch prescribed entries found: State
regularly follows up the outstanding entries for early elimination. pensions paid debited in the
Whether any non-prescribed transactions/ extraneous entries in
reporting month. Reimbursement
violation of guidelines have been routed through the Sundry Debtors
account. awaited for 8 months. Entries
Note: Test Check a few entries for Rs.10,000/- and above as to reversed and re-reversed. To
whether they relate to authorized transactions and exercise control and square off old
authenticated by two officials entries against corresponding
receipts and effective reconciliation
is to be carried out.
2. Suspense accounts (SUNDRY DEBTORS) at the Branch do not contain No such entries
any extraneous entries pertaining to clearing cheques returned as it
may be an attempt to conceal TOD. Special attention need to be given
at the end of June, September, December and March for entries of
inward clearing cheques parked for the purpose of inflating deposit
figures.
E: SUPPORT SERVICES, LOCKERS & SECURITY:
I) PREMISES, PURCHASE AND MAINTENANCE :
Sl.No Issues Date of Comments/Observations

15 | P a g e
. verification
 Verify whether various sanctions accorded by the functionaries June 2018 Yes
are as per non-lending powers. Whether the authority who accorded
the sanctions has power to accord sanctions.
 Whether a minimum 3 quotations have been received if the --------
amount exceeds Rs. 25,000/-. ---------
 Whether the quotations were called for from our empaneled/
approved furnishers/ suppliers.
Yes
 Whether necessary TDS/Retention money is deducted as per
laid down procedure.
 Whether TDS have been remitted to the ITO’s account within Yes
the stipulated time.
 In case of furnishing work, whether the architect has certified --------
correctness of the bill, measurement etc. Yes
 In case of revenue expenditure, whether the concerned
Branch Head is maintaining sanction register to monitor the annual
ceilings etc., as per non-lending powers.
 In case of capital assets purchased, whether the items Yes
purchased have been capitalised and incorporated the details in the
capital Assets register. NO
 Whether the inventory numbers have been painted on the
assets purchased.
Yes
 Whether disposal/deletion of capital assets effected are as
per non-lending powers.
 Whether assets purchased are covered by necessary insurance
Certified in quarterly return
wherever applicable at the Branch level.
 Whether quarterly verification of assets are done by the Yes-Complied
Branch Manager and certified in the Capital Asset Register. Yes-Complied
 Whether AMC are renewed on time.
 Whether entries made in Sundry Debtors pertaining to Yes
purchase of Capital Assets are reversed to Capital Assets GL in time?
Whether any entries outstanding for reversal? Yes
 Whether the branch /Office lease agreement is in force.
Whether renewal of lease is attended to. Yes
 Whether Deed is executed and if so, whether the same is
registered.

16 | P a g e
 2. SECURITY:
Sl.No Issues Date of Comments/Observations
. verification
1. Verify the security arrangements at the branch as to its adequacy and June 2018
any scope for improvement:
 Whether the basic security fixtures are provided and
maintained properly. Yes
o Collapsible gate; Yes
o Alarm system ;
o Wire-mesh to cash cabin;
No
o Auto -lock to cash cabin;
o Fire extinguishers (date of filling/expiry date)
Yes
 Whether follow up actions on the Inspection reports of CSO, Fire extinguishers refilled in March
RSOs security aspects covered in IAD and Zonal Heads visit reports are 2016
being taken. Yes

3. LOCKER RENTALS:
Sl.No Issues Date of Comments/Observations
. verification
1.  Verify whether proper security documents are obtained and June 2018 Yes-complied
locker rentals paid, security deposits are held as per the latest Updated information not available
guidelines. Total No. of Lockers :1034
 Wherever under-utilisation of lockers is high, the information No. of Lockers hired
as to the total number of lockers hired out shall be furnished. out :919
 The position of locker rentals arrears with breakups i.e., No. of Lockers Vacant : 115
arrears up to one year, upto two years and above two years (no. of
lockers and amount of arrears) is furnished at the end of each quarter.
Upto 1 year: 30 Lockers
 The subsequent recoveries effected out of the total arrears
Amt involved:Rs.1.17 lakhs
may be furnished.
Upto 2 years: 3 locker
 The action taken/ proposed to be taken should be furnished.
Amt Involved : Rs.0.13 lakhs
 Whether locker attendance maintained properly and
Total : 33: Rs.1.30
operations are recorded in CBS & allowed as per guidelines.
lakhs.
 The arrears of rentals locker holder/ party wise is furnished at
Followed up for recovery of rental
the end of each quarter in order to enable the Branch to, follow up
the matter.
dues.
Yes-Complied
 Whether any group is having more number of lockers, if so
provide details.
No

17 | P a g e
 F: OTHER ITEMS:
Sl.No Issues Date of Comments/Observations
. verification
It is further advised to examine the books of accounts and records of June 2018
Branches to particularly ensure that:
Verified. BC/PO are issued against
1. No Banker’s cheques are issued without any consideration. consideration only.
2. No Banker’s cheques are issued in favour of a Bank without Yes-complied
mentioning the name of the beneficiary.
3. No Banker’s cheques are issued in favor of a Bank without passing Yes- Complied
any entries in the books of accounts of the Branch at the time of
such issue.
4. No inter-account transfer of funds are allowed at the Branch No such cases observed
freely among the group of Companies/ Individuals without any
authority from the account holder.
5. Phenomenal increase in Deposits and Advances, if any, at the Increase in the ordinary course of
Branch are in the ordinary course of business and not on account business
of “Special reasons”.
6. All the loan documents and discharged fixed deposit receipts bear Yes
the genuine signature of account holder/s and signature/s thereof
are verified by the Branch officials.
7. There is proper control at the Branch over security items like
fixed deposit/ other term deposit receipts, cheque books, pay Yes
orders, demand drafts etc.
8. Any missing of security items do not remain unreported to the No such instances
Zonal Office, indicating the circumstances of misplacing etc.
9. In case of loans disbursed through pay orders/ Banker cheques Yes-complied
made out in favor of certain Banks such pay orders invariably
contain the name of the beneficiaries also.
10. All deposit accounts are opened with supporting documents Yes
strictly as per procedure and no documents including account
opening forms, specimen signature card etc., are missing at the
Branch.
11. In case the Branch has been entrusted with government business, Yes
ensure that the transactions are done in accordance with the
instructions issued by Government, RBI & H.O.
12. If there has been any fraud/ fraudulent act in the Branch during No fraud during the reporting
the quarter, verify whether they reveal any lacunae in the internal period
control mechanism at the Branch.
13. Verify whether the Branch has implemented new systems and Not observed

18 | P a g e
 procedures introduced by the Bank during the last six months;
Checking of inward & outward remittances of huge amounts (DDs, \
NEFT, RTGS, MTs, & TTs) in the backdrop of Money Laundering
(Refer manual No. 28 on Money Laundering & KYC Norms)
14. Verify whether Demand Drafts, Mail Transfers, Telegraphic Complied
Transfers and Travellers Cheques for Rs. 50,000/- and above
should be issued only by debit to the concerned customer’s
account or against cheques tendered by the Purchaser and not
against cash payment. Similarly, such payments for Rs.50,000/ -
and above should be made through Banking Channels and not in
cash.
15. Verify by surprise all Inward bills/ parcels on hand pending No Pending Bills
realisation/ release, as to whether all the accompanying
documents such as Lorry Receipts, Railway Receipts, Hundies,
Drafts, etc. in terms of their covering letters, are Intact.
16. Whether any bills are detained for more than the time allowed by No Pending Bills
the senders and if so, whether non-payment advise are sent to the
senders.
17. Whether our lien has been notified to the carriers in respect No pending Bills
of bills purchased/ discounted by our other branches but
remaining to be realised/ accepted by the drawees.

Note: Where such bills received from branches, for huge amounts
(say Rs.1.00 Lakh and above) are outstanding unpaid/
unaccepted by the drawees for unreasonably long time, the
Concurrent Auditor may verify the goods with the carriers/
Railways as the case may be by a surprise visit along with the
Branch Head.
18. Verify whether there is proper custody and control over the The Stock of security forms are in
stock of security forms such as cheque books, draft books, deposit proper custody
certificate books, branch advices, stock invest/ pas gift cheques,
etc.
19. Verify whether debits to income account have been permitted Yes
by the competent authorities or/ are within the powers of the
branch head and debits are properoly accounted for.
20. Verify whether all the irregularities noticed earlier in the Yes
Concurrent Audit have been rectified.
21. Verify whether the branch has submitted rectification reports
on inspection reports/Concurrent Audit reports and any other  For LFAR for March 18
Audit report to the controlling authorities as stipulated, during the rectification/compliance not
last 3 months (conduct test check of the rectifications reported.)
yet submitted .
19 | P a g e
  Rectification of CAR upto
March 2018 onwards lodged.
 Rectification for RBIA Dec
17- First reply yet to be
submitted.
22. Verify whether all the irregularities noticed earlier have been Some are persisting.
timely rectified and efforts made to rectify pending irregularities.
23. If one or more irregularities persist, Concurrent Auditors Furnished separately
should report them specifically in their monthly report.
24. Whether reversal of adjustment entries passed on each Yes
quarter end.
25. Transactions in transient accounts, if Balance is outstanding in No
transient accounts at the end of the day, the same shall be
reported.

G: AUDIT OF COMPUTER SYSTEM:

The Concurrent Auditors have to verify the following areas inaddition to the coverage explained above.
Sl.No Issues Date of Comments/Observations
. verification
1. In case of breakdown (hardware or software), whether it is noted in June 2018 No
the Machine Break down Register giving full details like the nature of
breakdown, date & time, how and by whom rectified, etc.
2. Upkeep of Computers and other accessories: Verify whether the Not covered overnight
Computers are daily dusted by users and kept spic and span. Whether
the Computers are covered with anti-static covers overnight and when
not in use. Whether nodes Computers with floppy drives are kept in
an unmanned area and access to it is not restricted.
3. POWER: Verify whether the UPS is working fine and in case of power
failure, whether sufficient battery backup is provided without
interrupting business.
 Whether sufficient load/ capacity is available in UPS at the Repeat Yes
time of switching the system (whether UPS trips for want of sufficient
load). Whether UPS is connected to power consuming equipments
other than computers and peripherals.
 Whether the mains connecting to UPS are switched off in the
night.
 Whether power points are not over loaded in the file server
cabin by connecting more than one equipment. No violation observed.
4. COMPUTER ASSETS: Whether all computer assets are put in to use. Repeat Yes
Whether anyitem is in surplus or not in use. Whether any item is

20 | P a g e
 missing, if so furnish full details.
 Whether all computer assets are maintained in good condition.
 Whether any hardware deficiencies have been found at the Not noticed as per branch
time of installation. If so details thereof. officials
5. SYSTEM ADMINISTRATION:
 Verify whether any unauthorized users are present in the system
both Netware and the application. Whether access privileges of the No
staff on leave/transfer is suspended/ removed. Whether vendor is
given unrestricted access to computer.
 Whether any Officer has been placed in charge of system
administration, if so, whether his duties and responsibilities are
well defined.
 Whether all users have unique one user-id and pass word Yes, no sharing of Password
andpasswords are used only by the relative password holders

6. a) Whether daily vouchers are arranged orderly, stitched and Yes

sealed with lac. Daily slips bundles are preserved under double
lock.
b) Whether all the transactions and masters are authorized daily. Yes
Whether operators are initialing all the vouchers for having
entered into the system. Whether vouchers are serially numbered
as per system generated batch transaction numbers.
c) Whether all payment are authorized by authorized officials.
Whether operators are initialing all the vouchers for having Yes
entered into the system. Whether vouchers are serially numbered
as per system generated batch transaction numbers.
d) Whether interest on TODs at appropriate rate is recovered on Yes
regularization or at quarterly intervals if TOD is yet to be
regularized.
e) Whether TODs/Excesses beyond MDP are reported and sancton/ Yes
ratification from higher authority is held on record.
f) Whether commission on DDs/POs/MTs are collected at
appropriate rates. Concessional /at par collection of service Yes
charges has to be reported in detail giving particulars like
name of party, service charges short collected, reason, date of
reporting and ratification held, if any etc. Yes
g) Whether operation in inoperative accounts is as per laid down
procedure. Yes
h) Whether rate of interest is correctly fed as per sanction terms
to OD/CC accounts.
i) Whether all the Information Security Guidelines are followed. Yes
21 | P a g e
 If not list out the guidelines which are not followed.
CHANGE MANAGEMENT:
a) Whether more than one person has been trained and exposed Reported as Yes
to every aspect of computerization/management so that smooth
operations/conduct of business is ensured is case of necessity.
b) Whether unusual occurrences like system failure, No event register maintained
inconsistency are documented, reported and timely measures
initiated. If so, full details like nature of breakdown, time of
breakdown and its rectification, reason, etc. have to be reported.
c) Whether data loss or files corruption occurred during the
7. period resulting in business interruptions. If so, report in detail, the
cause, nature, date and time, how and by whom rectified. No business interruptions

8. VIRUS PROTECTION:

a) Whether the Branch is checking for virus on a day to day basis. No

Whether virus has been found. If so, report in detail the date and
time, type of virus, date of reporting to ZCC, vaccine found etc.
The present infrastructure
b) Whether outside floppies are used, if so, whether the branch
is checking for virus before copying data/programs from floppies. obviates the use of floppies.
9. MAIL USAGE:

a) Whether the Branch is opening E-mails box and retrieving inward Yes
messages regularly.
b) Indicate the extent of usage of communication facility.
Fully used
c) Whether the branch is effecting transactions based only on E-mail
instructions in violation of extant guidelines. If so, transactions
effected with aggregate balance of Rs.1.00 crore and above during
the month to be reported separately. No such transactions

MAINTENANCE OF SPECIAL REGISTERS:

10.
a) Whether all the special registers, have been maintained up to date NA
in the prescribed formats. If not, list out the registers not
maintained/ not updated.
b) A report on import/export bills unpaid/unrealized beyond 180
days.
11. LODGEMENT OF INSPECTION REPORT-POSITION:
Last RBIA Closed on 21.03.2017
List out the un-rectified irregularities (with reference to the latest Present RBIA is from 27.12.2017.
Inspection Report). First reply is yet to be done.
a) Whether preventive maintenance of UPS, computer

22 | P a g e
 assets.
b) Whether Capital Assets Register is maintained up to
date and tallied with the physical verification of computer Yes
assets. In case of discrepancy, full details are furnished
together with the comments/clarification furnished by the
Yes
Branch-in-charge.
c) Whether any local purchase of computer items are In the computer System
made, if so whether ratification is sought and held (details of
ratification be given).
d) Whether acknowledgement for receipts of hardware/ No
software is held on record.
e) Whether any modification/changes to programs are -----
documented. Whether a special register for changes/
modifications to programs is maintained up-to-date under
proper authority. No
f) Whether all the modules supplied by ITD, HO are
implemented immediately.
g) Whether statement of accounts are handed over to all
customers on the first working day of succeeding month.
h) Whether computerized pass books are given to SB Yes
customers. In case of problems in pass Book Printers, full
details like nature of problems, Support from ZCC/vendor be Statements handed over , on
furnished. customer making request
Yes
IN GENERAL:
12.
a) Whether fire extinguishers of recommended type are Yes
installed at easily accessible points. Whether fire extinguishers
are refilled on time & kept alive.
b) Whether electrical cabling, switches are satisfactory.
Whether there are any loose/hanging electrical wiring Yes
connecting computers. Whether cables are laid through conduit Satisfactory
pipes and cables are not passing over the floor.
c) Whether smoke detectors/alarm devices are installed. Yes
d) Whether available configuration/infrastructure is Yes
sufficient for meeting day to day business.
e) Whether inventory numbers/marks are painted on No
computer assets.
f) Whether the CCTV cameras installed at Bank or not. Yes
Whether they are in working condition.
MAINTENANCE CONTRACT:

23 | P a g e
 a) Verify whether AMC is on force in respect of all the
13. computer assets, UPS etc. Whether renewal proposal is
submitted to HO through the concerned Zonal Office before the Yes
expiry of AMC.
b) Whether AMC for unused/idle computer assets has
been entered into.
c) Whether the maintenance charges quoted by the No
Vendors are correct and appropriates as per terms stipulated.
d) Whether excess AMC charges if any paid has been -----
recovered/adjusted. No such cases
e) Whether installation certificates of all the computer
assets is held on record and AMC has been entered only after Yes
the expiry of warranty period.
f) Any other deviations/irregularities observed. No
g) Suggestions, if any, for bringing about all round
improvement.
No
FOREIGN EXCHANGE TRANSACTIONS:

14. a) Check Foreign Bills Negotiated under Letter of Credit. NOT DESGINATED TO HANDLE FX
b) Check whether debits & credits to FCNR & other non- TRANSACTIONS
resident accounts.
c) Examine extension and cancellation of Forward
Contracts for purchase & sale of Foreign Currency. Ensure that
they are duly authorized & necessary charges are recovered.
d) Ensure that balances in Nostro accounts in different
Foreign Currencies are within the limit prescribed by the Bank.
e) Ensure that the overbought/oversold position
maintained in different currencies is reasonable taking into
account the Foreign Exchange.
f) Ensure adherence to the guidelines of RBI/HO about
dealing Room operations.
g) Ensure verification/reconciliation of Nostro /Vostro
accounts transaction balances.
h) FCNR/NRE accounts shown outstanding at the Branch
record, do not vary with records maintained with the
International Banking Division.
i) 100% verification of Bills of Entry/Postal/courier
wrappers and issuance of a certificates (as per Annexure for
having carried out 100% verification of Bills of Entry as to its
genuineness, acceptability and compliance of FEMA provisions,
to the Inspection & Audit Division, HO on the 1st of the
following month, with a copy to Branch, Zonal Office and IIBD
24 | P a g e
 (Forex), Mumbai. If there are no bills, a NIL Certificate must be
submitted.
j) A monthly report on 100% verification of Bills of Entry
as per Annexure must be submitted along with Monthly
Concurrent Audit Report to Branch &Zonal Office.
k) Verify on surprise dates during a month, all Inward
Foreign Bills on hand pending realization as to. NOT DESINATED TO HANDLE FX
l) Whether all the accompanying documents such as Bills TRANSACTIONS
of Lading etc. are intact;
m) Whether any bills are detained for more than the time
allowed by the senders;
n) Whether any documents have been released without
receiving payment.
o) Ensure that foreign Inward remittances received by
religious institutions/others are within the preview of the
Guidelines Issued by the Government.
p) Check all outward remittances on 100% basis.
q) Whether the remittances are supported by forms A1 &
A2 filled in all respects and are in order.
r) Whether R returns are promptly submitted to RBI on a
fortnightlybasis and the extant guidelines issued from time to
time and provision of FEMA are strictly followed by the branch.
s) Whether GR forms/Shipping Bills are promptly
verified.
t) Auditors must submit a monthly certificate on the 1st
of the following month in the given format (Annexure) on 100%
checking of forms A-1 & A-2 and compliance of FEMA Guidelines
to IAD, HO with copies marked to Zonal Office and Branch.
Observations if any may be attached to the certificate
u) Inward/Outward remittance of US $50,000/-and above
or its equivalent to undergo snap audit. Inward remittances of
US $50,000/-and above or its equivalent have been received in
well introduced accounts under strict compliance of FEMA
provisions.
v) Business portfolio such as FDI/ODI/GR
approvals/Forward Contracts/opening of Branch/liaison/project
offices abroad/ECBs/Purpose of Inward /Outward remittances
and scrutiny of underlying documents to be scrutinized very
carefully.
w) Auditors to verify the statements submitted by the
Branches to RBI/HO for correctness.
x) Release of GR forms on realization should be

25 | P a g e
 thoroughly scrutinized.
y) Auditors to check/verify written off export bills by the
Branches.
z) Auditors to comment on the timely credit of export
proceeds to exporters account to avoid compensation on
delayed credits.
aa) Verify whether imports are received in cases of NOT DESIGNATED TO HANDLE FX
advance payment against imports. TRANSACTIONS
ab) Verify whether exports are completed in cases where advance
remittance is received.
ac) Verify whether any structured advance import remittances are
sent in the range of US $85000 to 99999.00
ad) Verify follow up on receipt of BOEs for advance remittances of
amounts less than US $100000.00
ae) Verify abnormal spurt in import transactions in a particular
branch
af) Verify all Forex transactions during the month and submit a
certificate to the effect that the transactions are as per FEMA
guidelines and do not violate KYC & AML guidelines.
ag) Verify whether import transactions are allowed in new current
accounts.
ah) Verify whether new Current accounts are closed after routing
multiple import / export transactions.
ai) Verify whether newly opened Current Accounts where forex
transactions are carried out are fully KYC compliant.
aj) Verify whether due diligence of importer as well as exporters
are carried out.

15. FEMA AUDIT: NOT APPLICABLE

Sl.No Issues Date of Comments/Observations

. verification
1. Whether, certification of statement on Export Credit Interest
subvention is issued.
2. Whether cash receipts in NRO a/cs are eligible transaction.
3. A/cs receiving foreign contribution are registered with MHA and
are opened under sub code 16 only in CBS.
4. No other credits are allowed in FCRA a/cs other than inward
remittances.
5. Verify whether the money transferred from NRO account to NRE

26 | P a g e
 account or remitted abroad are as per RBI guidelines.
6. Verify whether all inward remittances to FCRA accounts are
reported to Head office.

16: PRECIOUS METALS BUSINESS - TRADING

Sl.No Issues Date of Comments/Observations
. verification
1. Check entries in Bullion Stock Register, Double Lock Register Import of
Gold related Bill of Entry (wherever applicable) other Import
Documents are in order, properly recorded and filed as per prescribed
Systems & Procedures. Check the branch has strictly followed the
concept of KYC (Know Your Customer) norms while entertaining Bullion
Business of new clients and other customers. Prescribed formats are
duly filed in and authenticated by verifying officials and held on
record with Customer profile.
2. Check "Profile of Purchasers of Gold" are well documented and
properly recorded.
3. Check physical stock tallies with stock register.
4. Check pricing and receipt of cash/Draft/Pay order/cheque etc.
5. Check date of selling / delivery, check delivery orders contain the
serial numbers and the markings engraved (i.e. the name or make) on
the gold bars, check details given in Sales Tax Registration Certificate,
match with customer profile / documents for each transaction. Check
opening of account and operations in the account are carried out as
prescribed from time to time by authorized persons only under proper
authority.
6. Check place of Business & Licenses (wherever applicable) for
genuineness.
7. Submit monthly report on Bullion Business as per checklist (Annexure)
to Branch and Zonal Office along with Concurrent Audit Report.
8. Submit certificate every month on 100% verification of transactions
under Bullion Business on the 1st of following month as per Annexure
to IAD, HO, with copies marked to Zonal Office and Branch. A NIL
certificate must invariably be submitted if there is no Precious Metal
business transaction during the month.

I: ATMs

Sl.No Issues Date of Comments/Observations

. verification
1. Check ATM operations as given in Marketing Division H.O guidelines. May 2018 Yes
27 | P a g e
2. Check Security guidelines are strictly adhered to. Yes
3. Submit monthly report as per checklist Annexure to ZO & Branch. Submitted

J: INVESTMENTS: NOT APPLICABLE

Sl.No. Issues Date of Comments/Observations
verification
1. Verify whether the securities held in the books of the Branch are
physically held by it.
2. Verify that in respect of purchases & sale of securities the Branch has
acted as per H.O Instructions.
3. Verify whether the sale / purchase transactions are done at rates
beneficial to Bank.

K: SEEPAGE OF INCOME:
Sl.No. Issues Date of Comments/Observations
verification
1. Check proper rate of interests are applied in all borrowal as well as June 2018
Deposit Accounts and prescribed service charges are, levied/ charged Verification of loan interest
for various services. application has to be carried out
as in some accounts incorrect
application of interest observed
consequent to migration to Finacle
10. In some accounts, where
aberration noticed, branch has
rectified.
2. Check all the income due to the Bank is properly accounted for and YES
realised by verifying arithmetical accuracy of all calculations.

L: LOAN AGAINST THIRD PARTY TERM DEPOSITS FOR ABOVE Rs.2.00 CRORE
Sl.No. Issues Date of Comments/Observations
verification
1. In case of loan granted against a third party deposit for an amount June 2018 No such cases
above Rs.2.00 Crore, verify whether due diligence of both the
depositor and borrower is done by the branch.
2. Verify whether prior permission from the Zonal Office concerned is NA
obtained and held with the loan documents by providing a) the
details of the KYC and b)due diligence done for the depositor and the
borrower
28 | P a g e
3. A signed written confirmation from depositor is obtained and it is not NA
an email confirmation consenting to grant a loan (mentioning the
amount to third party).
4 Verify whether a balance confirmation letter is obtained from the NA
borrower and a balance intimation letter duly got acknowledged from
the depositor once in a year in all cases where the loan amount is
more than Rs.5.00 Crore

CONTROL RISK EVALUATION:

L: CUSTOMER SERVICE:

With a view to achieving effective implementation on various Banking Service Committee's recommendations in their true spirit, the Bank is
committed to implement all the following specific areas on 100% basis, in all the operating Branches without exception. These areas are:

1. Immediate credit of outstation cheques upto Rs.15,000/-

2. Delay in collection and credit of outstation cheque, Bank drafts etc. beyond the stipulated time frame to be compensated by
payment of interest at prescribed rate, without Customer's asking.
3. Prompt issuance of Drafts, Banker's cheques/ Pay Orders.
4. Promote awareness among the Banking Public about the availability of nomination facility.
5. Updating of pass-books and prompt delivery thereof to the customers.
6. Issuance of TDS certificate in time to all customers

The Auditors have to verify and specifically comment on the position of implementation of the aforesaid specific services at the
Branches.

Sl.No Issues Date of Comments/Observations

. verification
1. To ensure that all outstation Cheques/ Instruments received for June 2018 Yes
collection during the previous day are duly entered in a separate
OBCC/OBCO Register.
2. To ensure that the reasons given for not affording immediate credit of Immediate Credit Selectively
the instrument are appropriate.
3. To ensure that the Branch has collected only collection charges and out Yes
of pocket expenses in case of all the OBCC/OBCOs where the immediate
credit is accorded.
4 In case the Instruments under immediate credit facility are returned No such case
unpaid ensure that Branch has charged applicable interest and followed
the recovery steps stipulated.
5. To ensure that all the new deposit accounts, the newly designed Yes
account opening forms (i.e., with nomination facility) are invariably

29 | P a g e
 obtained. In case the depositor/account holder does not wish to avail
the nomination facility, it should be recorded in the account opening
form under the depositor/ account holders authentication
6. To list out the pending OBCC/ OBCOs beyond 14 days and furnish the Complied
same to the Branch for Immediate follow up.
7. To ensure that the Branch has paid the Interest at applicable rate in No such cases
all cases of delayed collections during previous month. The same may
be verified with the monthly statement submitted to Zonal Office.

CUSTOMER COMPLAINTS:
Sl.No Issues Date of Comments/Observations
. verification
1. Verify whether customer complaints are dealt with properly. Yes

CUSTOMER SERVICE COMMITTEE:

Sl.No. Issues Date of Comments/Observations
verification
1. Comment on effective functioning of Customer Service Committee, Committees formed and
Preventive Vigilance Matters. functioning

M: VERIFICATION OF PROCESS AND PROCEDURES: [Important – Vigilance Division]

Concurrent Auditors need to verify the processes/ procedures followed by the branch to ascertain whether these are in tune with the
laid down guidelines and bring out the deviations if any.
Sl.No Issues Date of Comments/Observations
. verification
 Issue of Cheque Books / Loose leaf Cheque; Repeat Procedure followed

 Authorization in case of large value cash payments [particularly

those cases where the entry is authorized in the system by Special Done by the Competent Authority
Assistant/Officiating clerk beyond their limited passing powers];

 Handling and safe keeping of pass books tendered for updation;

Yes
 Keeping Rubber stamps/tokens/cheque books/security items out of
reach of customers from across the counter; Yes

 Adhering to Cash remittance guidelines; Repeat Cash remittance guidelines

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  Verification/Authentication of Exceptional transactions Reports by
Branch Head; Yes
 In case of Local Bank Accounts – to verify whether the interest
debit for out of funds was correct or not; to ascertain whether the
NA
local bank account was timely funded through RTGS or not; if there
is delay and consequential interest debit, then to find out where
exactly the lapse is;

 Whether the Branch allows customers to operate lockers without

making entry in relevant access register (random verification); No

 Whether the Branch allows access to 3rd persons accompanying the

customers into the Strong Room area while operating the lockers No

 Verification/Scrutiny of transactions in Transient accounts; Satisfactory

 Financial transactions entertained on the basis of E-Mails; Sparingly done

 Huge deposit of Cash in Staff Accounts( including ABB entries); Not observed
 Verification (under UV lamp) of Cheque deposited in Drop Box for
credit of accounts through ABB;
Informed as done

 CCTV installed is working or not; Working

 Are there any instances of habitual debits to Suspense Account; No

 Are there any instances/diversions of funds of small amounts Not Observed

entered and authorized by the same person;
No
 Any instances of Blank documents;

 Any instances of disbursement of loans by debit to suspense No

account;

 Any instances of disbursement of loans not complying with the

No
terms of sanction as per CSI;

 Any instances of disbursement without obtaining the pre

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 disbursement approval in applicable cases; No

 Any instances of purchase of local cheques/ self-drawn cheques; No

returned cheques;

 Any instances of delay in dispatch of purchased outstation

No delay observed
cheques;

 Any instances of allowing TODs by modifying DP (concealed TOD);

No

N: STAFF MATTERS;
Sl.No Issues Date of Comments/Observations
. verification
 Whether Leave updation in muster as well as in HRMS is Done
done or not;

 Whether expenses like Entertainment, Conveyance Yes

(petrol) Newspapers, Telephone/Mobile, Uniform/Washing
Allowance, Spectacles, Briefcase, Canteen are routed through
HRMS or not;

 Whether deduction towards HRR/Furniture Rent/ Office

Car effected or not; Deduction effected

 Whether Form “C” Bonus register maintained or not;

Maintained
 Whether Form “D” on disbursal of bonus submitted or
not.

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