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AIR- BO:Jhota as at 12.03.

2011
ANNEXURE
BRANCH PROFILE
1.Branch Details
Branch- Distinctive No, Name, Address, & Tel. No.

JHOTA-2675
District –Satna(M.P) 07671-294149
Last Audit as on 30.01.2010 Present Audit as on 12.03.2011
Risk Rating Medium
Circle Jabalpur
Category (Small/Medium/Large/VLB/ELB) Small
(Rural/MSME/Retail/Corporate)
Area Rural
(Rural / Semi-urban / Urban / Metro)
Date of opening of branch 11.09.1989
Officers Clerical Sub-staff
Total Staff Strength (including incumbent) 1. Sanctioned 1 2 1

2. Actual 1 1 2
Details of Extension Counters Nil
(Names, location & telephone Nos.)
If the branch has ATM, SWIFT, RTGS, RTGS, NEFT
Depository, Currency Chest etc, (specify)
Whether the branch has won any special award / NO
achievement / trophy.
(specify with date)
Name of Previous Incumbent (Designation and Shri M S Singhal
his stay at the branch From 26.09.2008 to 30.11.2010
Name of Present Incumbent (Designation, Shri D N Khirbat 09826427377
Telephone & Mob. No. and Posted Since when ) Since 01.12.2010
Name of Auditor (Designation, Telephone & NA
Mob.No. and posted Since when)
Date of last visit of Senior Officer 10.11.2010 Shri L K Malhotra Circle Head
Name & Designation
Change in Business Environment since last NO change
Regular Inspection viz. opening of another bank
branch etc.
2. Deposit & Advances As on previous IR As on present IR Dt.
Dt.30.01.2010 12.03.2011
No of A/cs Amount No of A/cs Amount
1. Savings Fund Deposit 1922 284 2540 349
2. Current deposit 81 11 28 5
3. Low cost Deposit (Total 1+2 ) 2003 295 2568 354
4. Term Deposit 458 247 454 277
5. Total Deposit 2461 542 3022 631
6. Total Advances : 324 175 241 129
Fund Based(FB) 324 175 241 129
Non-Fund Based(NFB) nil nil
3. Fresh sanctions / enhancement under BM Power 20 13.37
during the period under review:
Nil Nil
MSME
Agriculture (including K C C) 16 9.32
Nil Nil
C C (excluding K C C )
Nil Nil
Housing loan to public
Nil Nil
Vehicle Loan {(V/L) Public} 4 4.05
Other retail loans Nil Nil
Any other loan (Specify)
AIR- BO:Jhota as at 12.03.2011
Business growth and As on H.Y ended As on H.Y ended As on H.Y ended
budget achievement Sept.2009 Mar2010 Sept.2010

Bud. Achi. Bud. Achi. Bud. Achi.


Deposit 523 511 575 577 626 601
Low Cost Deposit (SF + CA) 282 269 325 322 356 348
Credit
- FB 228 191 200 188 207 132
- NFB NIL NIL NIL
Profit -2.68 -0.16 2.28
Priority Sector advances 199 156 270 132 198 128
Retail lending 9 4 10 2 10 2
Non-interest income 0.50 1.33 6 6 3 3
NPA reduction 7.00 5.29 13.95
Export turnover NA NA NA NA NA NA
Import turnover NA NA NA NA NA NA
5. Composition of Credit Portfolio
Mar.2009 Mar 2010 Qtr Dec 2009 Qtr Dec 2010
No. Amt. No. Amt. No. Amt. No. Amt.
A. Rating of advances
a) Rated advances (excluding NPAs and those overdue for Rating)
1 AAA NIL NIL NIL NIL NIL NIL NIL NIL
2 AA NIL NIL NIL NIL NIL NIL NIL NIL
3 A NIL NIL NIL NIL NIL NIL NIL NIL
4 BB NIL NIL NIL NIL NIL NIL NIL NIL
5 B NIL NIL NIL NIL NIL NIL NIL NIL
Sub total (1 to 5) NIL NIL NIL NIL NIL NIL NIL NIL
6 C NIL NIL NIL NIL NIL NIL NIL NIL
7 D NIL NIL NIL NIL NIL NIL NIL NIL
Total of (a) 1 to NIL NIL NIL NIL NIL NIL NIL NIL
7
b) Ratings overdue for 2 10.58 2 8.12 2 9.84 2 2.26
renewal
c) Advances eligible for NIL NIL NIL NIL NIL NIL NIL NIL
rating but not rated
Total of A (a+b+c) 2 10.58 2 8.12 2 9.84 2 2.26
B. Other Advances
Advances against/ NSC/
KVP/LIC Policy and 28 13.65 26 8.54 25 11.06 15 6.12
Pension loans (including
such loans to staff)
Advance to staff members
(H/L,V/L,clean OD etc.) 6 11.75 7 8.67 9 10.63 9 11.02
Housing loan to Public 4 7.57 6 10.75 6 9.48 6 8.61
Agriculture loans 216 116.37 195 82.36 142 71.92 178 91.73
Govt Sponsored Schemes 2 1.00 2 0.81 2 0.54 2 0.71
All remaining advances 17 14.53 19 13.12 18 10.91 30 9.78
Total of B 273 164.84 255 124.25 202 114.54 240 127.97
C. Total NPAs 44 24.97 87 55.54 90 60.23 34 15.55
Grand Total (A + B + 319 200.39 344 187.91 294 184.61 276 145.78
C)

Note: 1. Grand total should tally with total loans and advances as per GL.
2. If rating of any Loan a/c has not been done on current financials or is overdue for more
than 3 months then its rating will be downgraded by one category.
AIR- BO:Jhota as at 12.03.2011
6. Migration analysis of advances from previous review period to current review period

MIGRATION ANALYSIS OF ADVANCES


Rating Advances
which have Advances which have been rated more than once
been rated Present rating vis-à-vis previous rating
first time
(1) Same (2) Upward 3) Downward (4) Overdue (5)
No. Amt. No. Amt. No. Amt. No. Amt. No. Amt.
AAA NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
AA NIL NIL NIL NIL NIL NIL NIL NIL 2 2.26
A NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
BB NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
B NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
C NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
D NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
Total NIL NIL NIL NIL NIL NIL NIL NIL 2 2.26
Note: Total of the first four columns should tally with figure of total rated advances {i.e. 5(A)( a) and
that of fifth column with 5(A)(b)
Mar.2009 Mar.2010 Qtr.Dec Qtr.Dec
2009 2010
No. Amt No. Amt. No. Amt No Amt
7 A/cs taken over from other Banks /FIs Nil Nil Nil Nil Nil Nil Nil Nil
8 Irregular Advances 8 6.04 48 19.99 67 12.61
9 Fresh Slippage to NPA Accounts 9 4.90 55 40.97
10 Restructured Accounts (O /S) Nil Nil Nil Nil Nil Nil Nil Nil
11 Total Slippage to restructure a/cs during Nil Nil Nil Nil Nil Nil Nil Nil
the review period
12 Quick Mortality Cases Nil Nil Nil Nil Nil Nil Nil Nil
13 Total Non Performing Assets (Gross) 44 24.97 87 55.54 90 60.23 34 15.55
14 Out of total NPA: a.Sub. Standard 7 3.38 60 41.22 52 40.70 18 12.10
b. Doubtful 25 19.84 6 8.12 7 7.94 6 2.11
c. Loss 12 1.75 21 6.20 31 11.59 10 1.34
15 Recovery in NPA Accounts during the 38.14 20.18 5.10 6.18
review period
16 Credit Concentration
16.1 Total advances in largest segment (e.g. , 216 116.37 195 82.36 14 71.92 178 91.73
Agriculture ) 2
16.2 Advance to largest borrower or borrower 1 7 1 7 1 7 1 7
group ( FB + NFB)
17 Advances to Sensitive Sector Nil Nil Nil Nil Nil Nil Nil Nil
18 Non-Fund based advances
18.1 (a) LC/LG/DPG (outstanding) Nil Nil Nil Nil Nil Nil Nil Nil
18.2 (b) Invoked / devolved LC/LG (during the NA NA NA NA NA NA NA NA
review period )
18.3 (c) Due Date Default (outstanding) NA NA NA NA NA NA NA NA
19 Frauds/shortage of cash detected, if any Nil Nil Nil Nil Nil Nil Nil Nil
20 Recovery Made in cases of Frauds / NA NA NA NA NA NA NA NA
shortage of cash
21 Cases lodged against bank in courts / Nil Nil Nil Nil Nil Nil Nil Nil
Banking Ombudsman/ consumer forums
during the review period.
22 Penalties imposed by various Courts/ Nil Nil Nil Nil Nil Nil Nil Nil
Income Tax/RBI/Banking Ombudsman
Redressal forums etc. during the review
period.
23 Depositors having more than 1 % share Nil Nil Nil Nil Nil Nil Nil Nil
of total deposits (Public)
AIR- BO:Jhota as at 12.03.2011
24 Earning Profile Mar2009 Mar2010 Qtr Dec 09 Qtr Dec 10
1. Interest Income 22.32 13.89 10.78 10.95
2. H.O. interest received (including TPM 15.93 24.01 17.11 23.77
incentives & subsidies)
3. Non-interest income 1.88 6.29 1.40 4.59
A Total Income (1+2+3) 40.13 44.19 29.29 39.31
4. Interest Expenditure 19.64 20.49 20.90 23.50
5. Non-interest Expenditure 19.50 23.54 10.03 13.49
6. H O Intt./TPM Paid Nil Nil Nil nil
B Total Expenditure (4+5+6) 39.14 44.03 30.93 36.99
C Profit (A – B) 0.99 -0.16 -1.64 2.32
25 Average cost of the deposit of the 6.25 5.69 Not avail 5.35
Branch
26 Average cost of deposit of the Circle 4.92 4.81 Not avail 4.64
27 Average return on advances of the 11.67 7.66 Not avail 10.05
Branch
28 Average return on advances of the 9.38 10.59 Not avail 10.12
Circle
29 Average Business per employee 168.00 191.25 182.75 183.00
30 Average Profit per employee 0.24 -0.04 -0.41 0.58
31 Revenue Leakage (Annual) detected 0.05 0.04
32 Revenue Leakage recovered /detected 0.05 0.04
33 Branch Administration COMMENTS

33.1 Level of implementation of Business Not being implemented.


Continuity Plan
33.2 Efforts of the branch in reducing
controllable expenses (Substantiate with Satisfactory
figures of relevant period i.e. Year/HY/Qrt.)
and getting confirmation of unauthorized
expenditure, if any.
33.3 Comments on safeguards and precautions
taken in respect of various outsourced Satisfactory
services.
33.4 Comments on status of other facilities like
ATM, SWIFT, Depository, CMS, Internet
Banking, RTGS, NEFT etc. and their
effective utilization and adequate RTGS, NEFT & ATM Cards are being issued by the
safeguards and precautions taken by the branch.
branch against their fraudulent use.

33.5 Instances of window dressing, if any Not observed

33.6 Maintenance of prescribed registers for Registers/Records are not being maintained.
recording operational Loss Data.

INCUMBENT INCHARGE AUDITOR


AIR- BO:Jhota as at 12.03.2011
BUSINESS RISK
CREDIT RISK
1.1 Quality of credit portfolio (excluding NPAs)
Risk Score Allotted____ Risk Category Alloted ___________
(all the figures should be in lacs and should not contain any decimals)
Rating Category No. Amount Risk Amount as per Risk
(outstandings) Assess- Factor
ment (e) = (c)x (d)
Factor 100
(a) (b) (c ) (d) (e)
A) Risk Rated Advances
(a) Rated advances *
AAA 0.20
AA 0.30
A 0.50
BB 1.00
B 1.50
C 1.50
D 1.50
SUB-TOTAL of (a)
(b) Advances eligible for rating but 1.50
not rated
TOTAL (a) + (b)
(B) All other advances

Against FD/NSC/KVP/LIC Policy etc. and 0


Pension Loans (including such loans to staff)
Advances to staff members (Housing, 0.20
Vehicle, Clean OD etc)
Housing loans to public 0.50
Agricultural loans 0.75
Govt. sponsored schemes 1.10
All remaining loans and advances 1.00
TOTAL xxx
* GRAND TOTAL (A) + (B)
% of probable default to total advances (% xx xxx xxxx
of total of column (e) to total of column (c)
* If rating of any Loan a/c has not been done on current financials or is overdue for more than 3
months then its rating will be downgraded by one category. Rating on the basis of Balance Sheet
older than 18 months should be treated as Overdue.
Note: Grand total of column (c) should tally with total loans and advances (excluding NPAs) as per GL.
RISK SCALE RISK SCORE RISK CATEGORY
(% of probable default to total
advances)
<0.80 % 0-25 marks Low
0.80% to 1.60% 26 –50 marks Medium
>1.60% to 2.00% 51-75 marks High
>2.00% 76-100 marks Very High
No. Parameter Risk Scale Risk Risk Allotted
Score Category RS RC
(RS) (RC)
1.2 Extent of Migration In Stable & Upward movement 0 L
Existing Rated Accounts Downward Movement Upto 5% 1-10 M
(Amount Wise) Downward Movement >5% to 10% 11-20 H
Downward Movement >10% 21-40 VH
Note: 1. Downward movement should not be netted i.e. amount of upward movement should not be reduced from the
amount of downward movement. Percentage of downward movement should be calculated as amount of total
downward movement with respect to total outstanding of rated advances.
2. In case there is upward movement by 2 notches in the risk rating in more than 10% rated accounts, auditor
should scrutinize the risk rating of such accounts.
AIR- BO:Jhota as at 12.03.2011

No. Parameter Risk Scale Risk Risk Allotted


Score Category RS RC
1.3 Percentage Of Gross NPAs to 0% to 3% 0-20 L
Total Advances (Amount Wise) >3% to 5% 21-40 M
>5% to 10% 41-60 H
>10% 61-70 VH
Note: The impact of transfer of NPA to ARC/ARMB/SARC should not be accounted for as reduction of NPA.
1.4 Fresh Slippage in NPAs to 0% 0 L
Total Advances (Amount >0% to 0.50% 1-10 M
Wise %age) >0.50% to 1% 11-20 H
>1% 21-30 VH
1.5 Trend of Slippage in NIL 0 L
Restrcutured/Rescheduled >0% to 25 % 1-10 M
accounts during 1st Year >25% to 50% 11-20 H
(Amount Wise %age) >50% 21-30 VH
1.6 Quick Mortality Cases NIL 0 L
(Amount Wise) Upto Rs. 10 lacs 1- 10 M
> Rs.10 lacs to 25 lacs 11- 20 H
> Rs. 25 lacs 21- 30 VH
1.7 Credit Concentration (Amount Wise)
1. Segment/Industry Wise Below 30% 0-10 L
Concentration (Total 30% to 50% 11-20 M
advances in largest segment >50% to 75% 21-30 H
as %age of total advances) >75% 31-40 VH
The segments are e.g. Housing Loan, Vehicle Loans, Trading Loan, Industrial Loan, Agricultural Loan etc. (This
parameter is to be made N.A. in case of Specialised Branches).
2. Borrower Wise Concentration Upto 20% 0-10 L
[Advance to largest borrower >20% to 35% 11-20 M
(or to a borrower group) as >35% to 50% 21-30 H
%age to total advances] (FB >50% 31-40 VH
+ NFB)
The borrower groups consist of sister concerns, associate concerns, subsidiaries, concerns of family members
etc
1.8 Advances to Sensitive 0 to 10 % 0-10 L
Sectors (Amount Wise) (%age >10% to 15% 11-20 M
to Total Advances ) >15% to 20% 21-30 H
>20% 31-40 VH
1.9 Invoked / Devolved BG/LC < 5% 0-8 L
(Amount wise) (Default as % 5% to 10% 9-15 M
of the total outstanding >10% to 15% 16-25 H
BG/LC) >15 % 26-30 VH
TOTAL CREDIT RISK SCORE ( I.E. SUM OF RS OF 1.1 TO 1.9)
2. OPERATIONAL RISK
2.1 Depositors with more than Upto 10% 0 L
1% share of Total Deposits >10% to 20% 1-5 M
(as %age of Total >20% to 30% 6-10 H
Deposits) >30% 11-20 VH
2.2 Non KYC compliant Upto 10 % 0-5 L
Deposit A/cs (% of >10% to 15% 6-20 M
such accounts to total >15% to 20% 21-35 H
deposit accounts -Pnbrpt – > 20 % and above 36-50 VH
9/28 (a) )
2.3 Instances of window Nil 0 L
dressing Upto 1% to 3% 1-5 M
(Amount wise as % of >3% to 5% 6-10 H
deposit) >5% 11-20 VH
AIR- BO:Jhota as at 12.03.2011

No. Parameter Risk Scale Risk Score Risk Allotted


Category RS RC
2.4 Alternate Delivery Upto 25% L
Channels: >25 to 50% M
Maximum Applicable >50 to 75% H
Marks Marks >75% VH
35 x x
Internet Banking 10 x x
ATM 5 x x
Credit/Debit Card 10 x x
NEFT/RTGS
Note: Total Applicable Score 60 x x
1. Marks should be awarded in Internet Banking on the basis of no of users, timely action on requests
received through netbanking; in ATM on the basis of No of cards issued, safe custody, issue register
maintenance, Cabin Cleanliness, uptime, no of transactions vs cash payments; Credit / Debit Cards on the
basis of No of cards issued; NEFT/RTGS on the basis of No of transactions vis-à-vis draft issued.
2. If any of the facilities is not applicable, NA should be marked against that facility.
2.5 Record Maintenance of Very Good 0 L
Loss Data Good 1-5 M
Satisfactory 6-10 H
Unsatisfactory 11-20 VH
Note: While allocating Risk Score the auditor should see that all prescribed registers as per RMD Circulars are
properly maintained & checked.
2.6 Cases lodged against Bank 0 0 L
in Courts/Banking 1-2 1-5 M
Ombudsman/Consumer 3-5 6-10 H
Forums >5 11-20 VH
2.7 Penalties imposed in Cases No penalty imposed 0 L
lodged in Courts/Income Re.1 to Rs. 1.00 lacs 1-5 M
Tax Officer/ Ombudsman/ > Rs. 1.00 lacs to Rs. 5 lacs 6-10 H
Consumer Forums/RBI > Rs. 5 lacs 11-20 VH
2.8 Frauds Detected including No Fraud detected 0 L
cash shortage/ pocketing of Re.1 to Rs. 5 lacs 1-8 M
cash. > Rs. 5 lacs to Rs. 20 lacs 9-15 H
(Amount of fraud detected) > Rs. 20 lacs 16-20 VH
2.9 Recovery Made in Frauds Full amount recovered 0 L
Detected Recovery above 75% 1-8 M
(Amount recovered) Recovery above 40% to 9-15 H
75%
Recovery upto 40% 16-20 VH
2.10 Outsourcing / Other Service Upto 25% L
Providers (refer check list) >25 to 50% M
Maximum Applicable >50 to 75% H
Marks Marks >75% VH
1. Maintenance of computer 10 x x
Hardware/ Software/ATM
2. Courier/ dak services 10 x x
3. Security and watch & 5 x x
ward
4. Maintenance of SFF and 5 x x
Lockers
5. RBIA/Recovery Agencies 10
6. Other services, sweeper, 10 x x
canteen, water-boy etc.
Total Applicable Score 50 x x
Note:
1. If any of the facilities is not applicable, NA should be marked against that facility.
2. Due precautions & safeguards have been taken in outsourced services.
TOTAL OPERATIONAL RISK SCORE (I.E. SUM OF RS 2.1 TO 2.10)
AIR- BO:Jhota as at 12.03.2011
No. Parameter Risk Scale Risk Risk Allotted
Score Category RS RC
3. EARNING RISK
The growth based parameters have been set to assess yearly position. As such, in case of quarterly/half yearly
assessments, these should be adjusted on prorata basis.
3.1 Deposit 100% and more 0 L
(%age achievement of <100% and upto 50% 1-3 M
incremental budgets) <50% and upto 10% 4-7 H
<10% 8-15 VH
3.2 Increase In Low Cost More than 2% 0 L
Deposit (SF+CA) as 0 to 2% 1-3 M
%age to Total Deposit . Negative upto 2% 4-7 H
Negative more than 2% 8-15 VH
Note: Even though there is decline, if Low cost deposits of a Branch remain 60% or above, branch will be rated as Low
Risk.
3.3 Credit 100% and more 0 L
(%age achievement of <100% and upto 50% 1-3 M
incremental budgets) <50% and upto 10% 4-7 H
<10% 8-15 VH
3.4 Priority Sector advances 100% and more 0 L
(%age achievement of <100% and upto 50% 1-3 M
incremental budgets) <50% and upto 10% 4-7 H
<10% 8-15 VH
Note: In case PS budget is not given then aggregate of sub-sector budgets such as Agriculture, KCC, etc. may be
taken for assessment.
3.5 Achievement of Profit 100% and more 0 L
Budget <100% and upto 75% 1-3 M
(%age achievement of <75% and upto 50% 4-7 H
budgets) <50 % & Loss 8-15 VH
3.6 Achievement of Budget 100% and more 0 L
of Disbursement under <100% and upto 75% 1-3 M
Retail Lending (%age <75% and upto 50% 4-7 H
achievement of budgets) <50 % 8-15 VH
Average Cost of Deposits (+)0.5% point and more 0 L
3.7 (Avg cost of deposit of <(+)0.5% point to >0% 1-5 M
the Circle - Avg cost of 0% to (-)0.5 % point 6-10 H
deposit of the branch) More than (-)0.5 % point 11-25 VH
Average Return on (+)1% point and more 0 L
3.8 Advances (Avg return on <(+)1% point to >0% 1-5 M
advances of the branch - 0 to (-)1.5% point 6-10 H
Avg return on advances More than (-)1.5% point 11-25 VH
of the Circle)
3.9 Non-Interest Income More than 20% 0 L
(%age growth) 20% to >0% 1-5 M
0 to (-)10% 6-20 H
More than (-)10% 21-35 VH
3.10 Average Business per More than 10% 0 L
employee (%age >6 to 10% 1-5 M
increase in business per 0 to 6% 6-15 H
employee over the <0 16-30 VH
previous period)
3.11 Revenue Leakage 0 to 1% 0-5 L
(Revenue leakage >1% upto 3% 6-10 M
detected as %age to total >3% upto 5% 11-20 H
profit/loss during review More than 5% 21-30 VH
period)
3.12 Reduction in Controllable Very Good 0 L
Expenses (refer check Good 1-3 M
Satisfactory 4-7 H
Unsatisfactory 8-15 VH
list) (Efforts made by the
branch offi
Controllable expenses are expenses other than Interest, Establishment, and other fixed expenses like rent of
Note: building, AMCs etc. The auditor should assess this parameter on the basis of efforts made by the branch
officials in reducing the controllable expenses.
TOTAL EARNING RISK SCORE (I.E. SUM OF RS OF 3.1 TO 3.12)

Summary Score Sheet of Business Risk

Sr. Parameters Max. Appli- Present Risk Previous Risk Direction


No. Marks cable Assessment Assessment by ZAO of risk
Marks Date________ Date________ (by ZAO)
Marks allocated Risk
by Cate-
Auditor ZAO gory Marks Risk
allocated Category
1. Credit Risk 450
2. Operational Risk 300
3. Earning Risk 250
Total 1000

AUDITOR
CONTROL RISK

Summary Score Sheet of Control Risk

Sr. Parameters Max. Appli- Present Risk Previous Risk Direction


No. Marks cable Assessment Assessment by ZAO of risk
Marks Date________ Date________ (by ZAO)
Marks allocated Risk
by Cate-
Auditor ZAO gory Marks Risk
allocated Category
I. Credit Functions
1 Exercise of Loaning Powers 23
2 Pre-sanction Appraisal 44
Documentation & creation of
3 18
Charges.
4 Mortgages 36
Post-sanction Monitoring &
5 75
Follow up.
6 Acceptances, Endorsements 10
7 Bills Purchased/Discounted 14
8 Forex Credit 20
9 NPA Management 36
10 Revenue Audit in Credit 10
11 Other Observations 14
Sub-Total 300
II. Non-Credit Functions
1 Balancing 12
2 Cash Management 9
3 Currency Chest Functions 8
4 Remittance in transit 6
5 ATM 8
6 Banker a/c & Clg. Imprest 12
7 Suspense account 7
8 Sundry Account 7
Checking of Reports &
9 24
Morning checking
10 Opening of a/cs & KYC norms 82
Conduct & maintenance of
11 26
a/cs & Records
Security Forms Inventory
12 16
Management
Bills for collection, DD
13 4
Receivables & Parcels
14 Conduct of Govt. Business 8
15 Safe Deposit Vault etc. 10
16 Customer Service 11
Sub-Total 250
Sr. Parameters Max. Appli- Present Risk Previous Risk Direction
No. Marks cable Assessment Assessment by ZAO of risk
Marks Date________ Date________ (by ZAO)
Marks allocated Risk
by Cate-
Auditor ZAO gory Marks Risk
allocated Category
III. Computer Functions
1 Environmental Controls 12
2 Physical / Logical Controls 31
Maintenance & Business
3 25
Continuity Controls
4 Networking Controls 10
5 Operational Controls 22
Sub-Total 100
IV. Compliance Functions
Status of Previous Insp.
1 100
Report
Submission of Crucial
2 40
Returns
3 Communication & Response 40
4 Regulatory Compliance 20
Sub-Total 200
V. Branch Management –
A. General
1 Job Knowledge of staff 8
2 Up Keep of Branch Premises 22
3 Expenditures 10
4 Punctuality / Discipline 16
Rotation of Duties & 17
5
Placement of Staff
6 HRMS 7
Sub-Total 80
B. Security
1 Security Infrastructure 20
Security Manpower &
2 23
Equipments
3 Security Procedure 12
4 Fire Safety 15
Sub-Total 70
GRAND TOTAL (I TO V ) 1000
CONTROL RISK FORMAT
I. CREDIT FUNCTIONS
Item Risk Parameter Risk Yes/ Annx. Deviation Risk
No. Weight No No. Score
F V S
& (3x8)
Nature
(1) (2) (3) (4) (5) (6) (7) (8) (9)
1. EXERCISE OF LOANING POWERS
CR 1. Loaning powers have been exercised judiciously, within vested powers and have 5 NO CR
1 been exercised within the command area. 1
2. Loan is sanctioned by the competent authority, is duly recommended by the YES
2
second officer on prescribed loan proposal format
3. Overdrawing /adhoc limits have not been allowed beyond discretionary powers 6 YES
and if allowed, action has been got confirmed from competent authority ZTL
4. (a) Over-drawings / adhoc limits under discretionary powers have not been
frequently allowed.
(b) Drawings against uncleared cheques/ drafts have not been allowed in a YES
4
routine manner.
(c) Clean overdrafts within discretionary powers are adjusted within stipulated
time.
5. Facilities particularly LC / Guarantee / Bills Purchased are not extended on ad- YES
4
hoc basis frequently instead of setting up of regular limits.
6. No other irregularity observed in the guidelines relating to exercise of loaning YES
2
powers (not covered above)
TOTAL 23
2. PRE SANCTION APPRAISAL
CR 1. KYC norms have been adhered to / spot verification of borrower’s / guarantor’s NO
2 place of business/ residence is done/ antecedents are verified to ascertain the 5 CR
genuineness of the borrower/ guarantor and have been recorded in the visit FSI 1
Register.
2. (a). Photographs, photo based ID proof, address proof and PAN (duly verified) YES
of borrower/guarantor and other co-obligants are available on record 2
(b). Unit inspection register as prescribed has been maintained.
CR 3. Eligibility criteria have been adhered to and proper scrutiny of past conduct of
3 account of borrower / guarantor is done by obtaining statement of Bank a/c for NO CR
5
past six months, 1
FSI
Copies of salary certificates, Income Tax Returns, details of Revenue Record
(i.e. Khasra/Khatoni) have been got verified from related Offices.
4. CIBIL records, RBI defaulter lists, ECGC caution lists etc. have been verified to 4 YES
ascertain previous indebtedness of borrower- FSI
5. (a) Credit Information Reports (CIRs) from CIBIL have been drawn for
Borrowers/ Guarantors/Co-obligants requiring fresh credit facilities before
sanction of facilities as well as at the time of renewal/review/enhancement of
such facilities. YES
(b) CIRs from CIBIL form part of the proposal and copies thereof being kept in
2
the file alongwith other documents.
(c) The record of CIRs drawn from CIBIL database and recovery of charges
from the borrowers is being maintained in separate register
(d) Consent clause has been included in all (applicable ) documents obtained
from borrower/ guarantors and other obligants.
6. (a) Proper scrutiny of financial data and assessment of PBF has been done, as
per Nayak Committee Recommendations/Traditional Method/Cash Budget
System as the case may be. YES
4
(b)Assessment of technical feasibility and economic viability of project is
ensured by technical officer and appraising officer.
(c) Standardized Credit Appraisal Format has been used wherever applicable.

F= Frequency, V= Volume, S= Score


(1) (2) (3) (4) (5) (6) (7) (8) (9)
CR 7. (a) Credit risk rating has been done in eligible a/cs as per applicable Risk rating
4 Model and vetted as prescribed.(including accounts due for renewal) CR
(b). Accounts having FB +NFB exposure of above Rs 5 crore have been got NO 1
4
rated from approved external rating agency. NA
(c).Wherever applicable Rule based lending system (including eligible NA
agricultural advances) is being followed.
8. (a). CRs of borrowers/ guarantors have been compiled properly and are indexed. YES
(b). Assets as per CR have been verified. F3
(c). Compilation and review of CR’s has been done properly, necessary
supporting papers obtained and verified.
9. Search certificate in respect of Registration of charge and also in respect of 4 NA
existing charges have been obtained from ROC and held on record.
10. Guidelines relating to takeover of advances from other banks/FIs (including 3 NA
rating norms) have been adhered to.
11. In case of renewals/ enhancement, adverse features like improper conduct of YES
the a/c, significant variance of projected / provisional balance sheet with final 4
balance-sheet, over dues to other banks/ financial institutions, IR irregularities
etc. have been considered in the proposal.
12. (a) Other H.O. Instructions/ guidelines are followed, such as:
- Proper application form complete in all respects duly signed, is obtained YES
CR from the borrower. NO
5 - Letter of sanction is being issued to borrowers, Acceptance of terms & NO ANN
conditions obtained from the borrower and copy of Documents handed over 4
to the borrowers.
(b) In case of rejection, applicant is intimated the reasons of rejection. NO
(c) Necessary clearances/ licenses/approvals have been obtained. NA
(d) Proposals (including export credit) are disposed off in prescribed time. YES
(e) Proposal received and disposal register is maintained and updated
properly.The loan proposals are entered in the On Line Tracking System, NO
wherever applicable.
(f) Pre Sanction conditions if any, given in sanction of HO/Circle Office/Retail YES
Hub have been complied.
(g) All other formalities prescribed in bank’s various schemes such as Retail YES
Lending, Agriculture Advances, SMEs etc., have been completed.
TOTAL 44
3. DOCUMENTATION AND CREATION OF CHARGES
CR 1. (a) All the requisite documents have been obtained / properly executed and NO CR
6 held on record including jointly executed documents in consortium advances 1
(copies of documents, in case of consortium advances, where we are Member).
(b) Certified that documents are enforceable in the court of law. 7 YES
(c) Vetting of documents before and after execution have been got done from NA
Bank’s approved advocate, wherever applicable.
(d) Documents have been adequately stamped as per rate in force. YES
2. Creation of charge Bank’s charge is registered with the Registrar of Companies 4 NA
within stipulated time and search report thereafter obtained . FSI
3. In case of existing accounts of companies, such search has been got conducted
at the time of renewal/enhancement so as to ensure that no charge has been NA
1
created in the intervening period by the other Bank/lending institutions to the
detriment of Bank’s interest
4. Second/ Pari-passu and modification of charge is created on the securities NA
2
charged to the bank within the stipulated period.
5. Vehicles financed by the bank are jointly registered within one month from the 4 YES
date of disbursement of the loan amount if not simultaneously.
TOTAL 18
4. MORTGAGES
1. Genuineness/non encumbrance of title deeds of the IPs to be mortgaged is
ensured and search certificate covers entire period from the last date of transfer 6 YES
and not merely 13 years. ZTL
Certified copy of title deed obtained/verified and kept on records.
2. IPs offered have been properly got valued from Bank’s approved valuer on YES
Bank’s prescribed format covering points like verification of sites, approved plan, 4
etc.
(1) (2) (3) (4) (5) (6) (7) (8) (9)
3. BM`s visit cum valuation report certifying valuation of IP is held on YES
record. Site verification of IP has been done independently. 6
Photograph of IPs mortgaged has been obtained & kept on record. ZTL
(Duly signed & dated on back by owner).
4. (a) Proper & enforceable Equitable/Registered Mortgage of IPs have
been created in all accounts as per norms.
(b) Memorandum of deposit of title-deeds has been obtained, is properly
filled up, and has been signed by the holder of the title-deed of the YES
property.
(c) Certified copy of Board resolution of company mortgaging its IP for
5
securing loan for itself is available on record.
(d) Recital has been signed by authorised officials and has been duly
witnessed.
(e) Date/time on letter of intent of deposit of title deed is later than
date/time on which title deeds have been deposited.
(f) Value of the property has been duly filled up in the relevant column
with BM’s signatures.
(g) Date of letter of continuity is after the date of recital in the title deed
register.
(h) Acknowledgement of receipt of title-deed has been sent by the
branch and proof of the acknowledgement filed securely
5. The title-deeds of mortgaged IPs have been received within stipulated YES
period and are held on record. (Housing loan cases where the title-deeds 5
received after disbursement, are also to be covered here)
6. (a) Checklist and undertaking in terms of FPIS guidelines have been
compiled and available on record.
3
(b)All documents mentioned in NEC have been obtained & complete YES
chain of title deed has been obtained.
7. (a) All title deeds in respect of mortgages created are available on NA
CR record. 4 NA NO
7 (b) Title deeds have been kept in strong room in fire proof almirah. ANN
(c)Annual checking of Title deeds is being done and necessary NA
certificate is available on record. YES
(d) Fresh valuation of IP’s have been got done in all applicable cases as
prescribed. NO
(e) IPs held as collateral securities are checked at prescribed intervals
and proper record is maintained in a register thereof.
CR 8 (a) Noting of charge/ mortgage in the records of sub-registrar & Revenue NO CR
8 authorities has been got done within stipulated time & mutation also got NO 2
done. 3
(b) Mutation of charge has been verified from Municipal / Revenue
records.
TOTAL 36
5. POST SANCTION MONITORING AND FOLLOW UP
CR 1. All the terms & conditions of sanction (including advances under retail 4 NO CR
9 lending schemes) have been complied with. (Refer check list). 2
CR 2. LADDER Data is created/updated and also checked without delay and in 2 NO CR
10 terms of guidelines. Authenticity of Data is ensured. Outsourcing of 2
LADDER work is not being done.
3. CARD audit has been conducted in eligible accounts and no report in 1 NA
respect of CARD Audit is due for closure.
CR 4. (a) Subsidy has been lodged/ received in eligible cases. 2 NO CR
11 (b) All guidelines relating to subsidy provided under Govt. sponsored 2
schemes are followed and interest is not charged on loan amount YES
representing subsidy component.
(c) Interest subvention is claimed from the Govt. as per guidelines and YES
correct interest is charged. YES
(d) Claims have been lodged in time and proper record is maintained.
CR 5. (a) Working Capital limits have been renewed/ reviewed within due NO CR
12 date. NO 3
(b) CRs for Working Capital limits have been renewed within due date. 5 NA
(c) In case of Protested Advances account, the CRs have been
reviewed/compiled, if not reasons thereof have been recorded.
CR 6. (a) Balance-sheet and other financial papers for renewal of WC limits NO CR
13 have been obtained from the borrowers. NA 3
(b) Any deterioration in Risk rating of an advance(s) in respect to
previous rating has been taken into account at the time of review/ 5
renewal. NA
c) Audited annual statements of accounts have been obtained,
wherever applicable and on scrutiny no variations have been observed.
7. Pricing of loans (application of rate of interest on advances) has been done 5 YES
as per prescribed guidelines & as per risk rating of the account wherever
applicable.
8. Sales proceeds are being routed through the account by the borrowers. YES
Indicate the %age of sales routed through the a/c vis-à-vis actual sales and 4
projected sales.
9. End use of bank’s finance has been verified, guidelines regarding 6 YES
disbursement ZTL
complied and genuineness of supplier ascertained. (Refer check-list).
10.Stock Statements are submitted in time by borrowers and stock/ securities YES
are being checked by the branch officials as per terms of 5
sanction/guidelines and record thereof maintained. (separate report is to be FSI
prepared for advances of Rs. 5 lacs and above) Refer check-list)
11. (a) Stocks are being checked in rotation by different officials. YES
(b) No DP is being allowed against old, deteriorated and unsaleable stocks,
spares of more than 1 year old and unpaid stocks or as per terms of
sanction.
(c) Stock statement has been submitted( also for allocated limits) on PNB
938 ( PNB 939 in case of Book Debts) and valuation of the stock has
been made as per mandatory accounting standard (AS-2) prescribed by 2
ICAI (i.e. cost Price / Market Price/Net Realisable Price whichever is
less).
(d )In case of pledge account:
1.No unauthorised operation in the pledged godowns has taken place.
2.The doors of the godowns are kept locked with Bank’s locks with Bank’s
name engraved on them
3.Market rates register is properly maintained
12. (a) Stock audit in applicable cases has been got done. NA
(b) QRS/QMS statements, wherever applicable, are submitted timely and YES
held on record (including those within BM powers).
(c) PMS (Preventive Monitoring System) Statements are submitted in 4 NA
applicable cases.
(a) PERT Charts, in case of Term Loans of Rs 25 Crore and above are NA
prepared and monitoring is done as prescribed.
113. (a) Insurance is available, valid policy held for all the securities
mortgaged or hypothecated to the Bank for full value and proper
record (manual/computerized) is maintained/updated accurately in all YES
accounts including NPAs and entered in CBS system.
(b) All insurance policies are renewed on a common date i.e. 15th May, 5
15th August, 15th November and 15th February.
(c) Securities charged to the bank are adequately insured with agreed
bank clauses per sanction and renewed timely. Insurance policies have
been obtained from insurance companies approved by bank.
14.(a) Limitation is available in all loan accounts including NPAs and BC letters
are obtained at given periodicity and entered in CBS System.
5
(b) No procedural irregularity has been observed in limitation and BC letters. YES

CR 15. All formalities relating to sanction and disbursement are complete in a/cs CR
14 with securities like Deposits, NSCs/ KVPs, Life Policies, RBI/Govt. Bonds, NO 3
Shares/ Debentures/Units of Mutual Funds, & Gold/Silver 5
Jewellery/Ornaments etc. and Pension Loans. (including such loans to staff
members). (Refer check-list)
16. All formalities relating to sanction and disbursement are complete in loans YES
under Staff Welfare Schemes like Housing Loans/ Vehicle Loans/ Festival 5
Loans/Clean OD limits etc. (Refer check-list)
CR 17. Prompt action is taken in case of persisting irregular accounts / potential NO CR
15 NPAs. (details of outstandings irregular a/cs for more than Rs.1 lac are to be 5 4
enclosed)
CR 18. All out efforts are made for recovery in priority sector and non-priority sector NO
5
16 advances
TOTAL 75
6. ACCEPTANCES, ENDORSEMENTS AND OTHER OBLIGATIONS
1. (a) Facilities of NFB has not been allowed on ad-hoc basis and bills under it NA
not co- accepted where customer is not enjoying credit facilities from us.
(b) Terms of sanction and system & procedures are followed in issuance of 3
LGs/LCs. (Refer check-list)
2. Entries of expired LGs have been reversed as per prescribed guidelines. 1 NA
3. Bank’s dues have been recovered from customer wherever LGs/LCs have been 4 NA
invoked/devolved. If debited to ‘Due Date Default’, bank’s dues stand recovered.
4. LCs have not been opened without consent of competent authority, where there 2 NA
have been two consecutive devolvement.
TOTAL 10
7. BILLS PURCHASED / DISCOUNTED
1. Unauthorized DDs / Accommodation bills/cheques have not been purchased and 4 YES
if purchased, got confirmed from the competent authority. FSI
2. No irregularities have been observed in bills purchased / discounted 2 YES
transactions.(Refer check list)
3. Detention period at drawee branches is generally adhered to and proper follow 1 YES
up of overdue bills is made.
CR 4. DDs purchased are realized in reasonable time. Efforts are made for recovery 4 NO CR
17 in overdue cases. List of DDs outstanding for more than 30 days be enclosed. 5
5. Bills drawn on parties whose bills have been returned unpaid / unaccepted
earlier, are not again accepted for purchasing/ discounting. YES
2
Amount has been recovered from the party in respect of Bills/cheques returned
unpaid.
6. Bills are promptly dispatched through courier / registered post. 1 YES
TOTAL 14
8. FOREX CREDIT
1. Prescribed procedures are followed in export credit. (Refer check-list) 4 NA
2. Prescribed procedures are followed in import credit. (Refer check-list) 4 NA
3. Prescribed procedures are followed in other forex operations. (Refer check-list) 4 A
4.The amount of loss is recovered where Forward Contracts booked by the parties 4 NA
are not honoured.
5. FLCs are scrutinised properly. 2 NA
6. The unrealised export bills are de-linked on due dates and the un-recovered 2 NA
portion, if any, is debited to the appropriate head.
TOTAL 20
9. NPA MANAGEMENT
CR 1. (a) Identification of NPAs & their reporting is done as per guidelines. NO CR
4
18 (b) Identification of NPA through LADDER matches with CBS System. NO 5
19 2. There is no fresh slippage of advances to NPA category. 5 NO 5
3. There are no cases of quick mortality (advances becoming NPA within one 4 YES
year of release/disbursement)
CR 4. (a) Efforts have been made for upgradation of a/cs under NPA category by
20 making all efforts including implementation of Securitisation Act for NO
recovery/State Recovery Act/ Lok Adalat, wherever applicable. 5
(b) Timely & Proper steps have been taken for taking possession of IP’s and
disposal of properties possessed under SARFAESI Act.
CR 5. Proper record of all written- off a/cs is maintained and continuous efforts are 3 NO
21 being made for recovery in written off accounts.
YES
6. There is no erosion of primary/collateral securities in NPA accounts. 3
7. (a) Suits have been filed in eligible cases. 5
(b) In suit filed cases proper follow up is made with advocates / DRTs for NA
fastening recovery.
8. (a) Application for Attachment before judgement has been made in eligible NA
cases.
5
(b) Execution petitions have been filed in Decreed Accounts and are being
followed up regularly/ effectively.
CR 9. Proper follow up has been made in the cases where Recovery certificates have 2 NO
22 been filed under State Recovery Act.
TOTAL 36

(1) (2) (3) (4) (5) (6) (7) (8) (9)


10. REVENUE AUDIT IN CREDIT
1. Following reports are being generated checked and corrective action being
taken.
CR (a) Shortfall charges Report (Dayrpt 23/3) generated and charges recovered on NO
23 daily basis.
(b) Report CHGIR generated and checked for recovery of deviated charges. 3
(c) Report PNBRPT 3/36 being generated to ensure recovery of penal interest
in Retail lending accounts.(on monthly basis)
(d) Raudit reports -1/15,16,17,18 are being generated , checked and corrective
action is being taken.
2. (a) Correct interest rates are being charged in loan accounts.
(b) Cases with Interest rate reset clause stipulations are diarized and the YES
interest rates are examined/reviewed w.e.f. reset date 2
(c) Correct interest table codes have been entered in the system in loan
accounts.
CR 3. Interest success and failure reports are being generated and corrective action 2 NO
24 being taken.
4. (a) Penal interest is being recovered. YES
(b).Checking of interest calculations and interest applications is being done, as 1
prescribed.
5. (a) Processing fee/ Upfront fee/Documentation charges have been recovered in
all loan accounts as prescribed.
CR (b) Charges for allowing advances against uncleared effects are invariably
26 recovered. (.Ref-report Raudit 2/20) NO
(c) All charges to be recovered from borrowers have been recovered (NEC,
2
Valuation of IP , Inspection of Securities etc.)
(d) All charges refunded are within vested powers and as per bank’s
guidelines.
(e) Proper record of concessional rate of interest allowed and waivement of
charges by Incumbent /higher authorities is maintained.
TOTAL 10
11. OTHER OBSERVATIONS
1. SRM (Security Register Maintenance) is done / updated correctly, vital details
CR such as limitation, insurance, drawing power etc. are properly entered, updated NO
4
27 and valid MIS Codes correctly entered in the system for MIS generation in the
CBS System. List irregularities, if any.
2. Guidelines in respect of exposure to sensitive sectors (which includes finance 2 YES
to Capital Market, Real Estate Sector, Edible Oil, Cash Crops, Agriculture
Produce and other Sensitive Commodities) have been followed.
3. Guidelines in respect of credit exposure to a single/ group or industry have 1 YES
been followed.
4. Guidelines in respect of consortium advances / multiple banking have been 1 YES
followed including periodical exchange of information/ financial data.
5. Guidelines in respect of sick units, terms & conditions of rehabilitation packages 4 YES
and monitoring of such units etc. are followed.
6. Any other irregularity not covered anywhere in credit function. 2 YES
TOTAL 14
II. NON-CREDIT FUNCTIONS
Item Risk Parameter Risk Yes/ Annx. Deviation Risk
No. Weight No No. Score
F V S
& (3x8)
Nature
(1) (2) (3) (4) (5) (6) (7) (8) (9)
1. BALANCING
NCR 1. All balances required to be tallied in CBS have been tallied. (including manual 5 NO NCR
1 ledgers if any). FSI 1
2. (a) Balances of overdue FD/RD/cash order wherever kept in current account YES
have been tallied / reconciled as prescribed.
2
(b) Balances of PPF/RBI Bonds/ Tax Savings scheme have been reconciled
with RCC/Link Office
3 Balances of any head(s) has not been tallied by creating a separate dummy YES
5
account for parking of entries and there is no outstanding in upload
FSI
accounts.
TOTAL 12
2. CASH MANAGEMENT
NCR 1. (a) Cash Ratio of the branch is0.42% and is within prescribed limit. NO NCR
2 (52 weeks average) 1 1
(b) Cash beyond prescribed/ insurance limit was not held.
2. Cash is kept in joint custody (including cash at ATM)& checked at prescribed YES
3
intervals.
FSI
ATM Cash register (PNB 1064) is being maintained.
NCR 3. Proper control over tokens is exercised, PNB 135 is maintained and 2 NO @
3 safeguards are followed meticulously. FSI
4. (a) Clean Note Policy is being observed. YES
(b) Cashiers/ Head Cashier have been provided CBS system and are using
the same. 2
(c) Duplicate keys (including ATM Key) have been got exchanged during the
course of audit.
4 5. No other deviations have been observed.(Refer check-list) 1 NO 1
TOTAL 9
3 3. CURRENCY CHEST FUNCTIONS
1. (a) Monthly certificate in terms of GBD HO Circular is being submitted to
Circle Office by Currency Chest. NA
1
(b) Bi Monthly verification of chest balances is being done by an officer duly
authorized by the Circle Head.
2. (a) Police guard / Home Guard deployed in the Currency chest Whether the NA
strength of police guards found adequate at the time of inspection (check
1
their attendance register).
(b) Various security gadgets installed in Currency Chest are in working order
3. (a) Currency chest slip on form i-02/ICCOM format showing daily transactions / NA
operations as well as currency chest balance is put up to the Incumbent
Incharge on daily basis. 2
(b) Balances are tallied on daily basis with Link office / RBI.
(c) Currency chest is implementing all parameters of clean note policy.
4. Currency chest book in TE-1 is maintained by chest officer strictly as per RBI NA
instructions and daily cash balance report sent to link office / RBI through I- 1
02/ICCOMS report duly tallied with balance in currency chest book.
5. (a) Bin wise register is tallied by the cash officer every week with currency
chest book.
(b) No uncounted or unaccounted cash is kept in Currency Chest. NA
(c) Cash holding in currency chest is within capacity.
(d) Joint custody / control is exercised by both the custodians. 2
(e) Transactions are not allowed by the Currency Chest directly to any
customer.
(f) Branch Cash/ Documents are not kept in the strong room of currency
Chest.
6. No amount is outstanding in suspense register on account of shortage /forged NA
1
note detected.
TOTAL 8
@ Also repeated Item No NCR-1 of PIR 30.01.2010.
(1) (2) (3) (4) (5) (6) (7) (8) (9)
4. REMITTANCE IN TRANSIT
NCR 1. Prescribed safe guards have been observed in remittances and Cash NO
5
5 Movement Register Cash Remittance Register (PNB 861) are properly
FSI
maintained.
NCR 2. (a) Cash is being remitted through authorized vehicle/prescribed mode only. NO
6 (b) No entry remains outstanding beyond a period of 3 days in the branch 1 YES
relating to remittance to other offices/Currency Chest.
TOTAL 6
5. ATM
1.ATM cabin door lock is working, cabin is clean, dust free and AC functions 1 NA
properly.
2. (a) Cash holding limit has been fixed as per norms. 1 NA
(b). BM/ 2nd Man conducts physical checking of cash in ATM on fortnightly
basis.
(c) Concurrent Auditor, wherever posted conducts physical checking of Cash in
ATM once a Month & reports irregularity, if any in his concurrent audit reports.
3. (a) Custody of the Top Chassis of the ATM remains with ATM Incharge 1 NA
(b) Keys of ATM cassettes remain in main safe overnight
(c) In case of bio-metric ATM- Admin Card remains in dual custody.
4. (a) ATM custodians make a financial transaction immediately after 1 NA
replenishment of cash to ensure that cassettes have been correctly placed in
ATM.
(b) All necessary records are maintained in prescribed register as applicable to
ATM
5. (a) Combination lock is changed by new custodian during handing over / taking NA
over process and new code replaced in sealed cover. 2
(b) JP logs are retained in branch record with vouchers
6. (a) ATM Imprest account (Finacle – 5811331) is reconciled on daily basis. NA
(b) ATM transactions are reconciled within stipulated time.
(c). Shared network cardholders aquirer transactions have been accounted for
and , claim for transactions not settled in manual settlement, have been 2
lodged within stipulated time period.
(d) ATM’s monthly certificate at the close of each month (on appendix 3 of
OSD, HO guidelines) is sent to Circle Office, upto 7th day of succeeding month.
TOTAL 8
6. BANKERS ACCOUNT AND CLEARING IMPREST ACCOUNT
1. Branch is tallying / reconciling Clearing Imprest account (3211201) entries on NA
6
daily basis and making it NIL on Friday but not by parking difference in a dummy
ZTL
account.
2. Branch is tallying/ reconciling imprest accounts of Extension counters/ NA
2
administrative offices and other impersonal accounts including subsidy account at
FSI
prescribed periodicity.
3. Banker’s account is tallied with GL and reconciled with statement received from NA
the concerned Bank periodically and proper follow up is made for early adjustment 3
of outstanding entries. Differences are not parked in a dummy account. Details of FSI
un- reconciled entries of more than one month old be attached.
4. Heavy balances are not maintained in Banker account and excess balances are NA
1
remitted through RTGS.
TOTAL 12
7. SUSPENSE ACCOUNT
1. (a) All debits are passed by the Incumbent Incharge/ authorized officer. 1 YES
(b) No unauthorized debits / unusual items observed.
2. Report on outstanding entries are taken down every month and checked by YES
1
Incumbent Incharge.
3. Proxy entries in Suspense a/c are adjusted within 3 days. 2 YES
FSI
4. Suspense clearing entries are adjusted within 10 days and clearing differences 2 YES
have not been parked in Suspense Account. FSI
5. There are no old outstanding entries (beyond 15 days) including RDA other YES
1
than of permanent nature. If yes, details of such entries be attached.
TOTAL 7
(1) (2) (3) (4) (5) (6) (7) (8) (9)
8. SUNDRY ACCOUNT
NCR 1. Original vouchers are retained in separate file as per prescribed NO
7 procedure and concerted efforts made for adjustment of outstanding 1
entries.
2. Proxy entries in Sundries are reversed at the earliest / within 3 2 YES
days. FSI
NCR 3. (a) Entries pertaining to Sundry FEX revaluation, TDS, ATM, NCR
8 Sundry FD interest, excess cash unclaimed for more than 6 YES 1
months etc. are being adjusted in time and as per guidelines.
1
(b) There are no old outstanding entries (beyond one month) NO
other than of permanent nature. If yes, details of such entries
be attached.
4. Entries connected with deposit a/c : YES
- outstanding for more than 2 years stands transferred to
‘Sundries – Unclaimed Deposit’ head on half yearly basis. 1
- outstanding for more than 5 years have been transferred to
Circle Office as per prescribed procedure/ guidelines.
5. Entries in Sundry Non Customer account 3171160 and Sundry YES
RCC 3171158 are normally reversed on daily basis, but no entry 1
remains outstanding for more than 3 days.
6. (a) All debits are passed by the Incumbent Incharge/ authorized YES
officer. 1
(b) No unauthorized debits / unusual items observed.
TOTAL 7
9. CHECKING OF REPORTS AND MORNING CHECKING
. Following reports are being generated and checked
NCR a. Dayrpt 1/8-List of authorized users.
9 NO
b. Details of manual transactions where value date is 4
less than Trans date. Dayrpt 2/29A.
a. Day Book.
2. . (a) Control Reports (vig ‘User Created Transfer Entries’,
‘System NO
NCR
10 Generated Transfer Transactions’ and ‘Clearing Journal)
prescribed fortallying of vouchers are being generated.
5
(b) Other important reports of PNBRPT, PNBREP, FSI
DAYRPT and
RAUDIT are generated and checked regularly. Corrective
action is
being taken in terms of reports generated and checked.
3. (a) Daily Monitoring System (DMS) is meticulously
implemented in NO
NCR
11 Branch and Following Control reports are being
generated/ monitored/
checked daily as prescribed:-
1.1 Exceptional Transactions Report (EXCPRPT)
1.2 Temporary Overdrafts Report (TODRP)
1.3 Outstanding Proxy Posted Transactions (SPTM and
MSGOIRP)
1.4 Long Book of Incumbent (PNBRPT – 2/19)
1.5 UPM CHANGES Reports (AFP for UPR) - Changes 6
made in the profile ZTL
of ‘Users’ of the branch.
1.6 GL balance Report (DAYRPT – 6/1)
1.7 Report on Inter-sol TOD granted in CC /OD / SB / CA
accounts (DAYRPT – 2/28)
1.8 Transactions entered / posted by same employee
(DAYRPT- 2/20) NO
1.9 Report of Manual Transaction in ‘System only
Account’ (PNBRPT – 9/91)
(b) All above reports have been filed and stored properly.
4. 4. (a) Products and interest calculation checked as per
NCR
12 guidelines. NO
3
(b) Interest Success and Failure Reports in Deposit
Accounts and other Raudit reports are generated,
checked and corrective action is being taken.
(c ) Correct provision of interest accrued on deposits &
advances has been made .
5. Confirmation/authorization by the Incumbent
Incharge/authorized 6 YES
officials obtained on vouchers relating to Interest ZTL
Accrued Head, as per guidelines.
TOTAL 24
10. OPENING OF ACCOUNTS AND KYC NORMS
1 AOFs of all a/cs opened are available on record and kept under 4
YES
proper custody. FSI
2. (a) AOF / Forms of ATM/ Debit card/photographs/SS slips are
properly filled, attested by authorized persons/officials with PA
numbers/date and are properly filed. 8 YES
(b). Records for NRE accounts and relative AOFs are kept
separately as per RBI directives.
3. (a) Proper AOFs have been obtained in respect of all accounts
opened.
(b) AOFs are accompanied by all supporting papers like
Partnership deed, Memorandum and Article and Association, PNB 6 YES
984 etc. as prescribed.
(c ) Income proof of the depositor has been obtained.(Salary
Certificate ,ITR copy, Audited Balance sheet etc )
NCR 4. Proper introduction is obtained and Introducers’ signatures
13 verified, as per guidelines. 5 YES
Letter of thanks are sent to Introducers when they do not come FSI NO
personally at the Branch.
NCR 5. Proper Photo based ID proof has been obtained. 6 NCR
14 Photograph on ID proof matches with actual photograph. ZTL NO 2
Name on ID proof and on AOF/System is exactly same.
NCR 6. Independent verification of the address of new a/c holders is done. 6 NCR
15 NO 2
ZTL
NCR 7. (a) Address on address proof and on AOF/System is exactly same.
YES
16 (b) Letter of thanks is sent to new account holders through Regd 6
NO
Post/courier & POD is held on record.
NCR 8. (a) ID Proof/address proof are not old and are valid (e.g. copy of
17 telephone bill held is not more than two months old, Passport expiry YES
5
date is not prior to account opening date etc.).
(b) Photocopies of ID proof and address proof have been verified from NO
originals and duly signed by verifying official with stamp and PA No.
9. Cheque books in new accounts are not being issued without 6
YES
verification of address. FSI
NCR 10. (a) Correct risk classification of customers is being done.
19 (b) Risk categorization of customers is being done in the system and YES
AOF YES
9
(c) Risk categorization is being updated periodically. NO
(d) Customer information is being updated periodically as per Bank’s NO
guidelines
11. (a) PAN/ Form 60 has been obtained in all applicable accounts and
copies of PAN Card duly verified held on record and entered in the
system. 6 YES
(b) In case of Minors account, Form 60/ 61/PAN of guardian has
been obtained
NCR 12. Self attested recent photograph of the account holders have been NCR
20 obtained. 4 3
NO
Photographs have been duly verified by branch official with PA FSI
number.
13. (a) Nomination has been obtained in all eligible accounts and
properly recorded.
(b) In case of Minors account nomination has been made by guardian
only.
5
(c) Acknowledgement of nomination is being given to customer. YES
(d) Nomination has been properly witnessed (Nomination is to be
witnessed even in case of non availment of nomination facility by
depositor)
14. Any other irregularity in observation of KYC norms not covered
6 YES
above.
TOTAL 82
11. CONDUCT & MAINTENANCE OF ACCOUNTS & RECORDS
NCR 1. Transactions in newly opened a/cs are monitored/ watched for at least
21 first 3 months as per guidelines. 3
NO
Every leaf of First cheque book issued is being marked as ‘New FSI
Account’ on the top.
NCR 2. Transactions are monitored as per AML guidelines and Suspicious
22 Transactions, if any, are reported in prescribed manner. 3
NO
CTR (Cash Transaction Reports) is generated, scrutinized, submitted FSI
as per guidelines and copy placed in file.
3. Payment is not allowed on withdrawal slip without passbook. If
allowed, permission of incumbent is obtained. & any other irregularity 1 YES
(Refer check list)
4. Cheque book is issued on the basis of request other than on
Requisition Slip with BM’s/authorized officers’ permission. 3
YES
Acknowledgements from a/c holders (on PNB 119) are obtained & FSI
marked off in case cheque books issued to third parties.
5. (a) There is no time deposit account to be transferred to Overdue
category.
(b) Demand deposit accounts not operated for 3 years have been
transferred to inoperative others accounts.
1 YES
(c) Accounts not operated for 10 years and above have been
transferred to Inoperative a/cs 10 years & above.
(d) Cash orders older than 6 months are transferred to overdue
category.
6. Prescribed safeguards in operation and maintenance of inoperative 6
YES
accounts have been observed. ZTL
7. Full particulars of a/c holder, cheque book issued, other instructions
are entered & regularly updated into the system and checked/
1 YES
authorised by the Section Incharge. Record of the customers
instructions etc. kept properly in era
23 8. Vouchers are handed over to Daftri against proper receipt. 1 NO
9. Vouchers are tallied,stitched and signed by the custodians in the 5
YES
voucher register and voucher register is up to date. FSI
10. (a) Vouchers have been kept under lock and key and proper procedure
is followed for handing over the vouchers to different officials in case of need. 2 YES
(b) Cash payment Vouchers have been kept in the strong room.
TOTAL 26
12. SECURITY FORMS INVENTORY MANAGEMENT
1. Security forms have been kept in a fireproof cabinet / safe in the strong
1 YES
room, under the joint custody of two officers,
NCR 2. Security forms (including KCC and ATM/ Debit cards) are checked at the 6 NCR
NO
24 time of receipt from Head Office and entered in the system as per guidelines ZTL 3
NCR 3.Security forms have been segregated in High risk /Low Risk categories,as 5
NO
25 prescribed FSI
NCR 4. Daily in and out register (PNB-862)/ record in CBS is maintained and
2
26 control is exercised on security forms during the day. IMR is generated and NO
FSI
checked.
NCR 5. GBPAs of all authorised officials and Bank’s book of authorised specimen NCR
27 signatures kept in dual custody and handled by authorised official only and 1 NO 3
updated regularly.
6. (a) Periodical checking of Gold Coins is done as prescribed.
1 NA
(b) All guidelines related to Gold and Gold Coin Business are followed.
TOTAL 16
13. BILLS FOR COLLECTION, DDS RECEIVABLE AND PARCELS
1. Procedural instructions regarding custody / disposal of Inward/Outward Bill
1 YES
and Parcels are observed.
2. Outstandings of unpaid bills is taken down / generated and physical
checking of Bills forwarding with outstandings is done on the basis of 1 YES
prescribed guidelines.
3. Senders’ / branch’s instructions are being complied with and Inward bills
are over detained only with express authority from the sender branch / 1 YES
party.
NCR 4. Regular follow up is being done for realisation of instruments sent NCR
28 for collection. (Details of outstandings for more than one month be 1 NO 3
enclosed).
TOTAL 4
14. CONDUCT OF GOVERNMENT BUSINESS
1. Balances of Special Deposit Scheme, 1975 have been tallied quarterly
1 NA
with RBI/SBI.
2. Monthly Bank Reconciliation Statement of EPS-95 submitted to concerned
1 NA
Regional Provident Fund Commissioner / Asstt. Prov. Fund Commissioner.
3. In respect of OLTAS for direct taxes, Data & amount is matching ; NIL
report is sent when there is no transaction ; all mandatory fields are filled up
correctly like PAN NO. / TAN NO. etc. Also amount is being remitted to Focal
2 NA
Point and tallied on the same day in OLTAS with remitted challans;
Computer generated CIN number is properly noted and given to the
customer in OLTAS.
4. All govt. dues viz. direct taxes, indirect taxes, PPF, etc. are collected and
2 NA
remitted on the same day by Intersol and there is no delay.
NCR 5. No default observed in payment of pension / reliefs / arrears maintenance/ NCR
29 updation of Pension Payment Orders, obtention of life / non-marriage / non- 2 NO 3
employment certificates and marking payments on PPOs etc.
TOTAL 8
15. SAFE DEPOSIT VAULT & ARTICLES / DOCUMENTS IN SAFE CUSTODY
1. No irregularity has been observed in obtention and custody of lease-deeds
2 NA
of lockers.
2. SDV & lockers are being operated and their keys are kept by authorized
2 NA
officials as per guidelines.
3. (a) Locker holders have been classified into Medium and High Risk
categories.
1 NA
(b) Monitoring of operations in lockers is being done and other guidelines
are being followed.
4. Record of Rent in arrear has been properly maintained and regular follow
1 NA
up is made for recovery of overdue rent.
5. Nomination facility is made available to SDV and locker holders and
1 NA
recorded properly.
6. (a) Locks of surrendered lockers are interchanged and keys of vacant
lockers are checked.
2 NA
(b) No default observed in compliance of guidelines in breaking open of
lockers.
7. (a) Articles in safe custody are kept and recorded properly as per norms/
guidelines.
(b) Articles in safe custody are being checked as prescribed. 1 NA
(c) Temporary out register (PNB 167) is maintained for recording movement of
securities.
TOTAL 10
16. CUSTOMER SERVICE
1. (a) Customers are properly attended and their queries are responded to
promptly.
(b) Time norms for discharging different jobs/services are being
followed/adhered.
(c) Customers are given acknowledgement of cheques deposited.
(d) Whether pass books are being updated regularly
(e) Whether separate counter exists for updation of pass books in Metro/Urban
3 YES
Centres .
(f) Whether sufficient number of Pass book printers are available in the branch
and printing is legible and in order.
(g) All necessary Notice Boards (including Comprehensive Notice Board) e.g.
time norms, addresses and telephone number of senior officials and
Ombudsman Scheme Service Charges Interest Rates etc are displayed
prominently in the branch.
2. (a) Branch follows Bank’s compensation policy e.g., value dating, compensation
on lost instruments etc.
(b) Instant credit of outstation / local cheques upto Rs 15000/- is given in terms
2 YES
of Head office instruction
(c). Branch allows interest at prescribed rates for delays in collection of outstation
cheques beyond 10/14 days as laid down.
3. (a) Copy of code of commitment to customers is available, staff is aware of its
provisions and same are complied with .
(b) .Branch is practicing Bankers fair practice code and staff is aware of
Citizens Charter and sufficient pamphlets and books of the same are
available for customers.
(c) BCSBI Code of Commitment to Customers is adhered to and adequate
3 YES
copies are available and provided to customers.
(d) Customer Service Committee is constituted and functioning at the branch,
as per guidelines. Customers/Senior citizens are members of customer
service committee, Issues relating to preventive vigilance are discussed ,
Minutes are recorded and action points are suitably dealt with/
(e) Customer day is observed on 15th of every month.
4. (a) Complaint register PNB-640 is maintained and complaints are entered
NCR Communication from customers is acknowledged.
NO
30 (b) Prompt action is taken on all complaints and readressal is done to the
YES
satisfaction of customers. 3
YES
(c). Complaints received from CMD Secretariat are redressed within 48 hours.
YES
(d) Call Center site ‘PNB Sparsh’ is accessed daily and complaints relating to
Branch are promptly redressed.
TOTAL 11
III. COMPUTER FUNCTIONS

Item Risk Parameter Risk Yes/ Annx. Deviation Risk


No. Weight No No. Score
F V S
& (3x8)
Nature
(1) (2) (3) (4) (5) (6) (7) (8) (9)
1. ENVIRONMENTAL CONTROLS
1. Only IT systems are backed up by UPS(except for the minimal support 3 YES
light) and UPS is backed up by generator or standby UPS depending upon
the power supply of the area.
2. Electrical and Data cabling is done in structured manner and not loosely 3 YES
held.
COM 3. Earth to Neutral voltage is less than 2 and checked at least once in a 4 NO
1 quarter. (Mention last date of checking with reading). RECORD NOT
AVAILABLE
4. Whether all PCs/Printers are regularly cleaned and kept dust free. 2 YES
TOTAL 12
2. PHYSICAL & LOGICAL CONTROLS
1. Proper IT inventory details are maintained and regularly updated in register 6
with following details.
PC – Date of purchase, Company, Make, Processor, HDD capacity, RAM, YES
Warranty/AMC upto, Price
Printer – Date of purchase, Company, Make, Inkjet/Laserjet, Warranty/AMC
upto, Price
Other – Date of purchase, Hardware type, Company, Make, UPS Capacity,
Warranty/AMC upto, Price
2. Proper record is maintained in respect of Creation/ Deletion of USER IDs in 4 YES
the user maintenance register on specific approval of Incumbent Incharge or
Departmental Head.
COM 3. Proper record is maintained for the password of other users changed by 5 NO
2 the DBA in the register and same carries approval of the Incumbent/
authorised official.
COM 4. Adequate segregation of duties is ensured for maker checker concept. 6 NO
3 Separate user ID is used for performing DBA functions and routine FSI
financial transactions and compliance ensured through report dayrpt 2/20 FS
.
5. DBA of branch ensures enabling and disabling of users, creation and 6
deletion of users, etc on daily basis and active user list / report dayrpt 1/8 is FSI
generated and checked on daily basis by Incumbent In- charge / authorised YES
official.
6. Undertaking to comply with Security Policy as per ITD guidelines is 4 YES
obtained from users and kept on record.
TOTAL 31
3. MAINTENANCE & BUSINESS CONTINUITY CONTROLS
COM 1 BCP guidelines are followed in case of link down or non availability of 4S NO
4 server. Services are rendered to customers as per BCP guidelines.
2. Vendor is not allowed to perform any routine job/ sensitive jobs etc. in 4
place of DBA/ CTO/Authorised officer . FSI YES
Vendor’s activity is monitored by an authorised official and Equipment taken
outside bank’s premises do not contain any information / data.
5 3. Timely support of hardware vendor is available within 4 hours. 2 NO

4 (a).Hardware items are covered under warranty/ AMC. 3


(b) .A Copy of AMC/Service Level Agreement is held in the Office. YES
(c).Users are aware of the terms of AMC and the names and contact
numbers of AMC Vendors are known.
5.Old data of legacy systems are stored properly. Back up of the same is 4 YES
converted into CD-ROM and kept in joint custody.
6 6 .Fall back report is taken on the hard disk of a PC, four times a day. 4 NO
7. No obsolete hardware is lying in branch and the same is disposed off as 4 YES
per ITD guidelines.
TOTAL 25
(1) (2) (3) (4) (5) (6) (7) (8) (9)
4. NETWORKING CONTROLS
1.Network equipment like Router / Switch / Modem are placed in the least 2 YES
accessible area in a mounted rack under lock and key.
COM 2.Link Downtime register is maintained and updated regularly 4 NO
7
3.Internet access is not given to PC/System being utilized for a bank application 4 YES
having critical data.
TOTAL 10
5. OPERATIONAL CONTROLS
1. Duties of IT functions have been allotted through office order. 2 YES
2. Number of DBA’s in the branch are as per sanction / prescribed. 4 YES
3. No unauthorised software/ game etc. is loaded in computers. 4 YES
4. Instructions relating to User Maintenance (creation, deletion, enabling,
disabling), Regular Backup (where required) and Number of Users capable of
handling the following activities, are followed: YES
Government Business
Cash Management Services (CMS) 3
Depository
SWIFT
Internet Banking
NEFT/RTGS
YES
5. Anti virus software is installed on all PCs and is updated. 6
YES
6. The signatures are being captured and authorized in the system on daily basis. 3
TOTAL 22
IV. COMPLIANCE FUNCTIONS
1. STATUS OF PREVIOUS INSPECTION REPORTS
Item Risk Parameter Risk Yes/ Annx. Deviation Risk
No. Weight No No. Score
F V S
& (3x8)
Nature
(1) (2) (3) (4) (5) (6) (7) (8) (9)
1. (a) Previous Regular inspection report dated 30.01.2010 has been closed
within stipulated time. CLOSED ON 26.02.2010
(b) All other Inspection Reports such as Statutory audit report, RBI 40 YES
Inspection Report IS Audit Report etc. have been closed within
reasonable time.
2. Daily / monthly / quarterly audit reports are promptly attended and irregularities YES
15
are removed (applicable for under Concurrent Audit).
3. FSI-ZTL, Critical /Very High / High risk/ items are attended on top priority and YES
15
irregularities are removed within the stipulated / reasonable time.
4. Irregularities / deficiencies pointed out in Visit Reports of Senior Officers / YES
15
Security Officer are rectified promptly.
5. (a) Legal Compliance certificate being submitted and corrective action taken NA
by the branch if irregularities reported in the certificate.
10
(b) Quarterly Statement of cheques dishonoured for want of sufficient funds is
submitted to Circle Office as prescribed.
6. Co-coordinator in the concurrent audit branch has been designated and 5 NA
working effectively.
TOTAL 100
2. SUBMISSION OF CRUCIAL RETURNS
1. Statement register/ calendar of statements is properly maintained. 3 YES
2. Control returns are checked and submitted timely as prescribed. 10 YES
FSI
3. Queries related to control and other returns are promptly attended to and YES
525
replied.
4. Other returns including returns sent to RBI / Income Tax Office and other YES
10
Statutory returns are checked submitted timely as prescribed.
5. (a) Proper record of duly signed copies of statements are maintained in the YES
Branch. 5
(b) List of pending statements is available.
COL 6. MMC is correctly compiled and submitted on time.Queries of CO on MMC are NO
10
1 responded promptly.
TOTAL 40
3. COMMUNICATION AND RESPONSE
1. Registers for Ordinary/Registered/Courier dak/telegram are maintained as YES
5
prescribed.
2. Courier dak is entered in the register by branch staff only. 5 YES
COL 3. Dak receipt/disposal register is maintained and its weekly outstanding is taken NO
5
2 and checked regularly.
4. Bills, DDs and other documents are delivered to the Officer Incharge with the YES
5
initials in the Dak Register.
5. (a) Correspondence from Public/RBI/HO/CO is attended promptly. YES
(b) Email is opened and correspondence generated on daily basis and 10
attended prompted.
COL 6. Separate files for ‘Documents’ and Correspondence are maintained in Borrowal NO
5
3 Accounts.
7. Correspondence is filed methodically, files are paged properly and the standard YES
5
of correspondence is satisfactory.
TOTAL 40
(1) (2) (3) (4) (5) (6) (7) (8) (9)
4. REGULATORY COMPLIANCE
1. There is no violation of Govt. / RBI Guidelines / Directives. (in case instances of YES
violations are noticed and the same are not covered elsewhere under any parameter, 4
the details be enlisted in an Annexure)
2. Income-tax, Statutory Returns viz TDS on salary, rent, interest etc. are prepared YES
4
and submitted in time.
3. (a) Ghosh / Jilani Committee recommendations relating to frauds / mal-practices YES
are complied with.
4
(b)Mitra committee recommendations (on legal aspects of Bank Frauds -legal
compliance certificate) are complied.
4. (a) In case of fraud ,Fraud Proforma is submitted as per guidelines within 2 days NA

on FMR-1.
4
(b) FIR has been lodged in all fraud cases, as per bank’s guidelines (Present
status be given).
5. Raj Basha (Official Language) Policy is implemented as per guidelines 4 YES

TOTAL 20
V. BRANCH MANAGEMENT FUNCTIONS
A. GENERAL
Item Risk Parameter Risk Yes/ Annx. Deviation Risk
No. Weight No No. Score
F V S
& (3x8)
Nature
(1) (2) (3) (4) (5) (6) (7) (8) (9)
1. JOB KNOWLEDGE OF STAFF
1. (a) The staff, particularly in loans and foreign exchange deptt., (including in-
charge) have adequate/ requisite knowledge & experience. YES
4
(b) The staff is adequately trained and equipped with knowledge of
CBS/computer system and other new concepts & services.
2. (a) Whether conscious efforts are made to upgrade the knowledge and skill of YES
staff. 4
(b) Whether staff nominated for training is invariably relieved for participation.
TOTAL 8
2. UP-KEEP OF BRANCH PREMISES
1. Sign boards/indicator boards are installed/displayed in the branch as YES
5
prescribed..
2. All SFF items including computers and peripherals are marked with serial YES
3
numbers and Physical checking is done with SFF records periodically.
3. Old and unserviceable items have been disposed off, as per guidelines. 3 YES

4. (a) Premises bear a good ambience:


(b) Whether branch is white washed/painted periodically. Last date of white
wash________
(c).General cleanliness of branch premises is ensured. YES
5
(d) Proper lighting & sitting arrangement is ensured.
(e) Facilities like drinking water is available for customers.
(f) Area norms of marking 35% area with a minimum width of 10 feet for
customers’s lounge are ensured.
5. The lease deed/ rent deed of premises is not due for renewal in near future or YES
otherwise requisite steps have been taken to get it renewed in time. Due date of 3
renewal of lease deed_12.05.2011
6.(a) The current cum old record register is maintained, YES
(b) Old record requiring destruction is segregated as prescribed.
3
(c) Old record has been destroyed as per laid down procedure.
(d) Date of last destruction __________
TOTAL 22
3. EXPENDITURES
1. Expenditures are incurred under various heads within vested powers and proper YES
3
record thereof is maintained, as prescribed.
2. The prescribed crucial statements including QAC are submitted to CO as per YES
1
guidelines.
3.(a) No other expenditure has been debited to water and electricity charges /Law
charges/ TA Bill except payment of bills related to these heads only 2 YES
(b) All expenditure vouchers have been debited to correct heads.
4. Excess expenditure, if any, has been got confirmed from the competent 3 YES
authority
5. Prescribed procedure has been adopted for making purchases/expenditures. 1 YES
TOTAL 10
4. PUNCTUALITY / DISCIPLINE
1. No irregularity observed in timely opening of branch and prescribed public hours YES
3
are observed.
2. Staff members mark their presence 15 minutes before the working hours of the YES
3
branch and do not leave office before time.
3. Leave record is properly maintained in HRMS and there is no unauthorized YES
3
absence.
YES
4. Sub-staff is attending the office in proper uniform. 1
BM 5. Movement Register, Deviations Register, and Branch Document Register, are NO
3
1 maintained properly.
6. Discipline is maintained to ensure prompt / good customer service. 3
TOTAL 16
(1) (2) (3) (4) (5) (6) (7) (8) (9)
5. ROTATION OF DUTIES & PLACEMENT OF STAFF
1. Duty sheet (with complete detail of duties) is implemented through office order YES
and the duties have been assigned covering all aspects of CBS environment like
454
maker checker, separate IDs for DBA functions and financial transactions etc.
Branch maintains proper record of duty sheets.
2. Duties of all staff members are being rotated at prescribed intervals and staff FSI YES
members are performing their assigned duties. FSI 5
Mandatory availment of leave by staff is complied with. FSI
3. The services of Customer Care Officer (CCO) is being utilised strictly as per duty NA
2
sheet designed by H.O.
4. (a) Relations between Incumbent and second man are cordial. YES
2
(b) Relations between managerial and workmen staff are cordial.
BM 5. Periodic meetings of staff are held to discuss various issues and for finding
2 solutions to different problems, staff members are involved for improving customer NO
3
service and achievement of budgets of deposits / advances / profit / recovery /
reduction of NPAs/ compromise etc
TOTAL 17
6. HRMS
1. (a). HRMS activities are being handled by authorized staff member(s) / officer(s)
only and the Pass Word is not compromised. YES
(b) All day to day activities are being performed by the branch in terms of HRDD
2
HO circulars.
(c). Monthly certificate of Incumbent for having paid the salary as per HRMS is
invariably held on record.
2. (a) Attendance is marked in HRMS within 30 minutes from schedule working YES
hours by the incumbent.
2
(b) Leave applications are duly sanctioned, entered in Leave Register through
HRMS on day to day basis and filed properly.
BM 3. Whether following HRMS reports are being generated to check discrepancies:
3 (a) Monthly absence exception report NO
(b) Officiating exception report
3
(c) Expenditure reports of Newspaper reimbursement, Petrol Reimbursement
to Scale-IV & above officials, Conveyance/petrol reimbursement,
Residential phone reimbursement, Washing allowance reimbursement
TOTAL 7
B. B.SECURITY
Item Risk Parameter Risk Yes/ Annx. Deviation Risk
No. Weight No No. Score
F V S
& (3x8)
Nature
(1) (2) (3) (4) (5) (6) (7) (8) (9)
1. SECURITY INFRASTRUCTURE (LOCATION / PREMISES)
BM 3 NO BM
1. Branch is located in safe area.
4 1
2. Collapsible gate and shutters are provided on all entrances and main entrance YES
5
entry is restricted by channel gate or turnstile gate.
3. Windows/ventilators etc. have strong grills/iron bars. 3 YES
4. Branch has RCC (Reinforcement Cement Concrete) strong room. or Branch has YES
3
safe room and safe is embedded in RCC walls
5. (a) Branch has separate Locker room. Cash Safe or Locker Room are YES
segregated by wall partition. 3
(b) Whether Cash Safe is as per latest specification.
BM 6. Branch has proper Cashier Cabin, covered with glass/ wire mesh and automatic NO
3
5 night latch.
TOTAL 20
2. SECURITY MANPOWER & EQUIPMENTS
1. Gun Licensee is renewed on due date in the name of Incumbent In-charge and
names of guard/s are entered as retainers. 3 NA
Next renewal is due on ________
2. (a) Gun History sheet has been maintained to ascertain the firing/test firing
record. NA
Last test firing done on _________.
3
(b) Servicing of guns got done within a year. Last service done on _______
(c) Cartridges have been replaced after expiry.
Last date of replacement___________
3. (a) The security alarm system is installed and fully functional.
(b) If.anti burglary devices are installed with night mode facility, it is fully
3 YES
functional. OR If integrated alarm system is installed, it is fully functional.
(c) Operational guidelines are being followed meticulously.
4. CCTV (wherever applicable) installed / functional and recording for 30 days is YES
3
carried.
5. Time lock wherever installed is functional and handling of time lock keys is as YES
3
per bank’s guidelines.
6. Auto dialer (wherever applicable) is installed and functional. 2 NA

7. Armed-guards are posted in the branch, if sanctioned and performance of 6 NA


duties of armed guards is satisfactory
TOTAL 23
3. SECURITY PROCEDURE
1. Branch is opening and closing are as per bank’s guidelines 3 YES
BM 2. Branch is being visited by an officer on Sundays and holidays and record of NO
2
6 such visits is being maintained.
3. Branch premises is not being used for any unauthorized activity. 2 YES
4. (a) Handling / control of strong room keys is as per guidelines. YES
(b) Procedure adopted for withdrawal of cash from strong room is as per 3
guidelines.
5. There are no outstanding observations / irregularities as per Circle’s Security YES
2
Officer (CSO) Report.
TOTAL 12
4 FIRE SAFETY
1 Electric load is as per sanction and condition of electrical wiring and accessories 4 YES
appropriate
2. Proper storage system exists for Record and Stationary is stored properly to 5 YES
avoid fire hazard.
3. Fire fighting system i.e. proper fire extinguishers including Gas based are YES
available at the branch and special attention is paid for their maintenance. 4
Next refilling is due on 24.01.2012
4. Fire alarm system with adequate number of smoke detectors is functional, NA
2
wherever installed
TOTAL 15
OVERALL RISK
(Aggregation of Business Risk and Control Risk)

On the basis of summary score-sheets of Business Risk and Control Risk, Risk category of the branch
under Business & Control Risk is as under:-

Business Risk Control Risk


Maximum Marks 1000 1000
Applicable Mark
Marks Obtained
Risk score (Marks Obtained as %age of
Applicable Marks)
Risk Category

Direction of Risk*

Business Risk Control Risk

Risk Score Risk category Risk Score Risk category


UP To 20% LOW RISK UP To 20% LOW RISK
>20% TO 40% MEDIUM RISK >20% TO 35% MEDIUM RISK
> 40% TO 60 % HIGH RISK > 35% TO 50 % HIGH RISK
MORE THAN 60% VERY HIGH RISK MORE THAN 50% VERY HIGH RISK

Risk Matrix: Overall Risk Category of the Branch through combination of Business Risk & Control
Risk is as under:

VH H H VH EH

H M H H VH
Business Risk
M M M H H

L L M M H
L M H VH
Control Risk

Overall Risk of Branch___________

Overall Direction of Risk*__________


*Direction of Risk (viz. Stable ↔/Decreasing ↓ /Increasing ) to be determined by ZAO under Business Risk,
Control Risk & Overall Risk through comparison of % Risk Score under previous & current Inspection.

Previous Inspection Current Inspection Direction of Risk


as on ________ as on________ (↔) (↓) ()
Applicable Marks % Risk Applicable Marks % Risk
Marks Obtained Score Marks Obtained Score
Business
Risk
Control
Risk
Overall
Risk
Identification of Potential Risks

Suggestions for Mitigation of High & Very High Risks

AUDITOR
SWOT ANALYSIS

1. STRENGTH (POSITIVE ASPECTS OF THE BRANCH)

2. WEAKNESSES (NEGATIVE ASPECTS OF THE BRANCH)

3. OPPORTUNITIES (POTENTIALS AVAILABLE TO THE BRANCH)

4. THREATS (MARKET CHALLENGES FROM COMPETITORS)

AUDITOR
BUSINESS RISK

CHECK-LIST

The check-list for different areas is given below. The lists are illustrative and not exhaustive. The
lists have been provided to enable the inspecting official to assess risk category and allocating
marks against these items. Wherever necessary, the assessments made as per the check-lists
are to be substantiated with facts & figures.

1. Item No.2.10 Services Outsourced / Other Service Providers

1. Whether only those services/activities have been outsourced which have been YES/NO
prescribed/allowed by the Bank/Competent Authority?
2. Whether credibility and capability of outsourced agency has been ensured? YES/NO
3. Whether a proper watch and control is exercised on outsourced activity? YES/NO
4. Whether safeguards have been taken against misuse of Bank's data/information YES/NO
by the outsourced agency?
5. Whether over-dependence on outsourced agency has been avoided and an YES/NO
alternative plan is in place?
6. Whether the database is not exposed to AMC vendor during maintenance/repair YES/NO
of the system?
7. Whether in case of outsourcing of Canteen services in Branch, police verification YES/NO
of the Contractor and his staff got done/independent verification of antecedents of
Contractor done?
8. Whether in case of outsourcing of despatch of outward Dak through Courier, YES/NO
access allowed only to authorised employees of the company with proper
identification, who are not permitted to enter Dak?
9. In case of outsourcing of Concurrent Audit function, the guidelines prescribed by YES/No
I&AD, HO from time to time are adhered.
(presently contained in I&AD Cir. No 07/2009)

2. Item No. 3.12 Reduction in Controllable Expenses

1. Whether expenditures are incurred under various heads within vested powers? YES/NO
2. Whether proper record of expenditure under various heads maintained? YES/NO
3. Whether austerity measures put in place and conscious efforts made to control YES/NO
avoidable expenditure?
4. Whether proper control is exercised for expenditure in respect of Stationery items YES/NO
purchased locally as well as TA bill & local conveyance expenditure?
5. Whether it is ensured that only the required lights, fans etc. are kept on during YES/NO
non-public dealing hours?
6. Whether the prescribed expenditure statements submitted timely to Controlling YES/NO
Office?
CONTROL RISK
CHECK-LIST
I. CREDIT FUNCTIONS

The check-lists for different areas are given below. The lists are illustrative and not exhaustive. The lists
have been provided to enable the inspecting official to assess risk category and allocating marks against
these items. The irregularities observed as per the check-lists are to be covered under the annexures
enclosed for that item.

1. Item No: 5.1 Terms and conditions of sanction


1. Prescribed rate of interest has been charged.
2. Prescribed margin has been obtained before disbursal of the advance.
3. Give specific details of terms & conditions of sanction not complied with.

2. Item No: 5.9 End use verification


1. End-use has been physically verified.
2. Proof of purchase of security held on record.
3. Payment has been made directly to supplier of goods.
4. Securities have been purchased.
5. Securities were initially purchased but sold subsequently.

3. Item No: 5.10 Checking of stocks


1. Signboard of borrowing concern appear at office/shop/factory premises.
2. Bank’s name plate is displayed appear at hypothecated stocks.
3. Bin cards/stock register have been maintained by the borrowing concern.
4. DP register at the branch has been maintained properly and bears the initials of officials (i) who
has entered the stock statement and verified the correctness of drawing power and (ii) who has physically
inspected verified the stocks.
5. Please annex details of securities due for verification and securities verified during the review
period.
6. List of sundry debtor and creditors is being submitted and analysed alongwith the stock statement
wherever applicable.
7. Number and amount of securities/stock missing. Give details alongwith the position as per last
inspection.
8. Any other irregularity observed.

4. Item No: 5.14 Limitation and BC letters


1. Limitation Register has been maintained properly and updated.
2. Position of limitation expiring within six months is monitored by the branch.
3. BC letter have been stamped.
4. Signatures/thumb impressions on the BC letters have been verified by the branch officials.
5. Continuity of BC Letters has been ensured.
6. Revival letters have been obtained in case of expired BCs.
7. Acknowledgement of debt has been obtained from legal heir(s) in case of deceased borrowers.
8. Waivement of legal action has been applied for/obtained wherever required.
5. Item No: 5.15 Advances against Deposits/NSCs/KVPs/LIPs/Jewellery etc
5.A Advance against Deposit
1. FDRs/RDs are duly discharged by the depositor(s).
2. Depositor(s)’s signatures have been verified.
3. Bank’s lien has been marked in system/account/deposit receipt/passbook.
4. Proceeds of matured FDRs/RDs have been credited in loan a/c.
5. Interest on Special FDR is being credited to loan a/c.
6. Proper safeguards and documents have been taken in case of loan to special category customers
like minors, illiterate persons etc.
5.B Advance against NSCs/KVPs/Govt Securities
1. Genuineness of Govt securities has been verified.
2. Lien has been noted with Post Office/Govt. Deptt. by sending our own staff or through registered
post .
3. Bank’s lien has been noted on securities/ securities transferred in bank’s favour.
4. The proceeds of securities which have matured have been credited in the loan a/c.

5.C Advance against Life Iinsurance Policies


1. Policies have been absolutely assigned in bank’s favour.
2. Updated surrender value letters are held for each policy/ proper calculation sheets are held on record.
3. Latest premium receipts are held on record.
4. Loans have not been granted against Policy under sec 6 of Married Women’s Property Act.
5. Age has been admitted on the policies assigned in bank’s favour.
6. Life Policy Register (PNB-307) has been maintained.
7. Outstandings in loan a/c do not exceed surrender value of the policy.

5.D Advances against Shares/Debentures/Units of Mutual Funds


1. Branch is authorized to allow such Advances.
2. Advances have been allowed against approved shares only.
3. Prior permission from CAD, HOis obtained for granting advance against shares (Primary as well
Collateral security).
4. Genuineness of shares have been verified.
5. DP as per latest market value is updated.
6. A/c is regular as per latest DP.
7. Shares transferred in Bank’s favour, wherever applicable/lien has been marked with DP.

5.E Advances against Gold / Silver Jewellery & Ornaments


1. Valuation of gold /silver ornaments is based on rates fixed by CO/HO from time to time.
2. Repayment schedule has been fixed/adhered to as per terms of sanction.
3. Outstandings do not exceed value of security.

6. Item No 5.16 Advances to Staff under Staff Welfare Schemes


1. Sanction has been done by competent authority.
2. Documents are complete and are in order.
3. Eligibility criteria has not been violated.
4. Terms and conditions of sanction have been complied with.
5. End use verified.
6. Security has been created and has not been subsequently sold.
7. Joint registration is available on record in case of vehicle loans.
8. Insurance has been obtained and is alive.
9. Limitation is available.
10. Instalments by way of monthly deduction from salary are being deposited in the a/c.
11. In case of Clean OD limits, the salary is credited in OD a/c.
12. The a/cs are not irregular/overdrawn/ outstanding after the tenure of the advance.
13. Correct rate of interest has been applied. Interest rate modified after retirement/ resignation as per
applicable rules.

7. Item No: 6.1 Procedural irregularities in LGs/LCs


1. Application form for issuance of LG/LC has been obtained.
2. LG/LC has been opened with proper sanction.
3. Counter Indemnity has been obtained.
4. Prescribed margin has been obtained.
5. Limitation Clause has been inserted in the LGs.
6. Bills have not been co-accepted from the customers not enjoying other credit facilities.

8. Item No: 7.2 Procedural irregularities in Bills Purchased/Discounted


1. Bills are accompanied by MTRs of approved transport company.
2. Usance period of the bill is within the sanctioned period.
3. Bills of sister/allied concerns are not purchased.
4. Returnings are not adjusted out of fresh discounting/purchase of bills.
5. Usance bills are properly/adequately stamped as per prevalent law.
6. Overdue bills under ABC Scheme have been reduced while calculating DP.

FOREIGN EXCHANGE BUSINESS CHECK-LIST


The check-list for different areas is given below. The list is illustrative and not exhaustive. The list has been
provided to enable the inspecting official to assess risk category and allocating marks against these items.
The irregularities observed as per the check-list are to be covered under the annexures enclosed for that
item.

9. Item No. 8.1 Export Credit


i) Whether the Branch is properly maintaining GR/PP/SOFTEX/SDF forms after completing
requisite information on the reverse of the same at the time of realization of export bills, if not
comment. With detail of missing forms.
ii) Packing credit is being adjusted out of the respective export bills.
iii) Packing credit allowed is not more than FOB value of the export bill.
iv) FLC is of the approved bank.
v) The consignee is not the foreign buyer but the foreign bank.
vi) Details of Overdue Export Bills on account of Bills purchased/negotiated may also be
mentioned for monitoring purpose.
vii) Whether advance remittances received by the branch towards exports are being
monitored regularly.
viii) Confirmation that export bills are not being accepted in respect of caution listed exporters,
which are not backed by advance payment/irrevocable Letter of Credit or prior RBI permission.
ix) Whether write off of unrealized export: bills are done as per the delegated powers only after
submission of documentary evidence for surrender of incentives, if any;
x) Confirmation that guarantees against exports is not being issued without RBI’s prior
permission.
xi) Confirmation that export bills are not being accepted in respect of caution listed exporters,
which are not backed by advance payment/irrevocable Letter of Credit or prior RBI permission.
xii) Whether eligible amount is credited to EEFC account only after realization of export proceeds;
xiii) Whether unpaid overdue export bills are delinked as per FEDAI guidelines.
xiv) Whether delinking charges have been recovered from the customer.
xv) All the credit limits i.e. pre-shipment & post-shipment are to be notified to ECGC within 30 days
of sanction/enhancement, in case of any irregularity, comment.
xvi) Whenever new limits are sanctioned or existing limits are enhanced/ reduced/cancel, it should
be reported to ECGC on the prescribed format in duplicate and this duplicate copy, duly signed, is
returned by ECGC to the bank and same is retained in the document file.
xvii) Regular premium should be paid every month before 10th of every month, to ECGC,
calculated on average daily product.
xviii) Rate of premium should be, as per the rate circulated by IBD, every year effective from 1st
July to 30th June.
xix) Premium on WTPCG is to be debited from exporters account whereas premium on WTPSG is
to be borne by bank out of revenue head “premium paid to ECGC".
xx) In case of default, premium is to be paid up to the month in which the report of default is
submitted to ECGC or in case of insolvency of exporter, up to the month in which the insolvency
occurred.
xxi) Bank can fix any limit without prior approval of ECGC if asset classification of account is
'standard'. However, any limit sanctioned beyond discretionary limit to any exporter, with asset
classification "sub-standard" should be only with prior approval of ECGC.
xxii) No advances to be granted to units whose names appear in "specific approval list" (SAL) or
Caution List. Also, if any of director/partner/ guarantor figure in the list, then without prior approval
of ECGC. Otherwise, such advance is not covered by ECGC.
xxiii) Country wise classification by ECGC should be adhered and restricted cover countries
exports should not be financed, without ECGC prior approval.
xxiv) Any extension in due dates beyond 360 days in Pre-shipment & 180 days Post Shipment
cases should not be permitted without ECGC prior approval.
xxv) Report of default- Branch should report within one month of recalling the advance or within four
months of due date/extended due date, whichever is earlier.
xxvi) If nursing of account is approved by bank in some case then prior approval of ECGC is
required, because normally no new advances can be given in any sticky account. Such advances
are not covered if prior approval is not obtained.
xxvii) All recoveries in any account, subsequent to settlement of claim by the corporation, net of
recovery expenses, are to be shared between corporation and bank in the ratio in which the loss
was admitted by the corporation.
xxviii) Claims may be lodged with the corporation within 6 months from the date of report of
default to ECGC.
xxix) Whether foreign currency notes/travelers’ cheques towards payment of exports are
accepted only from the overseas buyers during their visit to India; in case of any deficiency,
comment.

Item No. 8.2 Import Credit


i) Whether the branch is properly maintaining records of A-1, A-2 & A-3. Forms for release of foreign
exchange for imports, sundry remittances and credits to Vostro Accounts as per RBI/Banks’ guidelines
issued under FEMA, 1999, if not comment with detail of missing forms.
ii) Confirmation that remittances in respect of items included in Schedule I to Government of India
notification D. GSR 381 (E) dated 03.05.2000 is not allowed. In case allowed submit details.
iii) Confirmation that A-2 form for remittance upto USD 5000 is not insisted upon by the branches from
the applicants.
iv) Custom Bill of Entry has been received, checked and properly filed in all cases as per guidelines.
v) Whether LCs have been issued as per articles of UCPDC 500.

Item No. 8.3 Other FEX Operations


i) Whether the branch has undertaken foreign exchange transactions with due diligence by ensuring
adherence to guidelines pertaining to EXIM Policy, FEMA directive, Anti Money Laundering & Know
Your Customer norms, comments.
ii) Whether all crucial returns/statements such as X0S, BEF, STAT-,1 1BS, NRD-CSR, Gold Import, R-
Return are correctly compiled and promptly submitted by branches to RBI/their Regional/Zonal Offices
etc.
iii) Whether the branch while undertaking foreign exchange transaction has indulged in indiscrete use of
financial powers at any level;
iv) Whether remittances for the purpose of overseas employment, immigration, education abroad,
maintenance of close relatives and medical treatment abroad are allowed only on self declaration and
other basic details of the transaction in terms of RBI's guidelines.
v) Whether applications in respect of Forward Contract booked by the customers have been obtained and
submitted to the concerned FEO/SPMO.
vi) Whether confirmations in respect of Forward Contracts booked by the customers have been obtained
and submitted to the concerned FEO/SPMO.
vii) Whether charges in respect of booking/cancellation of forward contracts have been recovered from the
customer.
viii) Whether balance of FCNR Deposit Accounts in Foreign Currency as well as Indian Rupees have been
reconciled with the nodal office FEO. New Delhi.
ix) Whether the branch has kept on record on the specimen of draft and specimen signature of authorized
officials of the EH.
x) The period of validity of the draft issued the EH is not in excess of three months
xi) Verification that no payment other than those specifically permitted as per Foreign Exchange Circular
referred to above have been made from Trade Transaction for the account
xii) Verification that no payment other than those specifically permitted as per Foreign Exchange Circular
referred to above have been made from Trade Transaction for the account
xiii) The designated branch has introduced the prescribed register for recording the details of drafts/cheque
paid and the date of claim raised with Account Maintaining Branch
xiv) Verify randomly with reference to two drafts per week and indicate the average time gap observed over
last six months between the date of payment of the draft if the designated branch level and the date of
reimbursement by the Account Maintaining Branch
xv) Charges Recoverable/Recovered, if any

II. NON CREDIT FUNCTIONS


The check-list for different areas is given below. The list is illustrative and not exhaustive. The list has been
provided to enable the inspecting official to assess risk category and allocating marks against these items.
The irregularities observed as per the check-list are to be covered under the annexures enclosed for that
item.

1. Item No. 2.5 Other Irregularities in Cash Management


1. Necessary steps are taken in case of detection of counterfeit/forged currency notes and STR is
filed submitted, without fail.
2. The entire cash is checked at least once a fortnight by Manager/Authorised officer as prescribed.
3. Cash Book/Report is signed by Head Cashier/Officer and Manager/Authorised Officer on daily
basis.
4. A list of missing/lost tokens is displayed at paying cashier’s counter.
5. The Cash Reserve Book remains in strong room during the day and incumbent incharge’s safe
overnight.
6. Bait money has been kept in the cash-safe.
7. All high denomination notes are checked daily under proper initials in daily Cash Balance Book.
8. Cash receipts above Rs.10,000/- are signed both by receiving cashier & authorized officer.
9. Petty cash vouchers are duly authorized and supported by bills and amount adjusted on monthly
basis.
10. Soiled notes are exchanged as per RBI guidelines.
11. Cash Scroll system is being followed in rural and semi urban branches.

2. Item No.11.3 Other Irregularities in Conduct & Maintenance of Accounts


& Records
1. The signatures on requisition slips/request letter are being verified before issuance of cheque-
books.
2. Separate series of cheque-books with prefix NRE are issued to non-residents (external) account-
holder.
3. The standing instructions are examined during the month by the Manager/authorized officer to
ensure regular and timely compliance.
4. Token system is followed meticulously.
5. The interest is credited regularly on due dates in Special FD A/cs
6. Interest on other term deposits is credited to concerned accounts as per guidelines.
7. Record of majority attainment is monitored & operation is not allowed to the guardians in the
majority attained accounts
8. All guidelines observed in holding, preparing and dispatch of pass books/statement of a/cs.
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