EDUCATIVE SERIES ON COMMONLY OBSERVED QUERIES

DURING THE RBIA OF BRANCHES

CREDIT RELATED:
01. Applications / Documents / Undertaking letters not signed by borrower/s.
02. KYC or photo of borrower/guarantor not obtained/not verified by branch officials
03. Pre/ Post sanction unit visit with photos not obtained
04. CGPAN not obtained for CGFMU/ CGTMSE covered accounts
05. CGFMU/ CGTMSE not covered for eligible accounts
06. Udyami Registration certificate not obtained
07. Working capital / term loan assessment not done
08. Latest financial statements not obtained
09. Non-compliance to loan disbursement guidelines like obtaining of Bills, Vouchers etc.,
and ensuring end use.
10. Review copy from CRM section not obtained after sanction of loan within the
permitted timelines (i.e. Monthly before 7th of succeeding month).
11. Non-compliance of observations made by Reviewing Authority.
12. External due diligence report not obtained in case of all eligible accounts
13. Insurance for securities/stocks/machinery/vehicles with bank lien not obtained
14. Periodical stock inspection reports not obtained.
15. Course completion certificate not obtained in case of Education loans
16. Yearly progress report not obtained in case of Education loans
17. Original Fee receipts not obtained in case of Education loans
18. Not obtaining RC copies / Smart Cards / B Register Extracts and not ensuring Bank’s
hypothecation.
19. 3 sets of form 29 30 not obtained
20. CERSAI registration not done/ CERSAI search report not present
21. Latest vehicle inspection report not obtained
22. Original invoice not obtained in case of Vehicle loans
23. Loan documents are not completely filled or blank
24. Signature of officer/Branch in charge not present in loan documents/annexures
25. Excess finance done in case of KCC loans
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Assurance section
Regional office,Kurnool
 26. Correct loan application or documents not obtained in case of KCC loans
27. Insurance of animals in case of Animal husbandry loan
28. Buyer seller agreement in case of animal husbandry loans
29. Bills/ receipts not obtained in case of animal husbandry loans
30. Veterinary doctor certificate not obtained in case of animal husbandry loans
31. Document stamping completely not done or under stamped for which adjudication
should be done.
32. MCP not obtained or not duly signed by office bearers in case of SHGs
33. CIR copies not present or Details in CIR report not properly verified
34. Ratification from next higher authorities for financing to customers having written off
accounts in CIR (CIBIL, EXPERIAN, CRIF, EQUIFAX)
35. Not obtaining collaterals stipulated by Sanctioning Authority and failures to report
pending EMTs.
36. 13/30 Years flow of tile not discussed in LSR.
37. Non-availability of (a) LSR checklists & (b) All the mortgage documents as mentioned
in the Legal Scrutiny Report – LSR.
38. Non-registering our charge/lien with Registrar (MORTGAGE NOT DONE)
39. Mortgage not done for the complete loan amount.
40. Further EC indicating Bank’s lien/charge not obtained
41. Latest tax paid receipts not obtained
42. Charge creation not done in WEB LAND PORTAL
43. Non-availability of
(a) EMT papers / documents;
(b) Further EMT for enhanced limits;
(c) Records regarding EMT;
44. (d) Certificate of EMT Balancing as per Cir 556/2017 & Non sending of such EMT
Balancing Certificate to the concerned BS & I C Section along with PRR 18 during the
month of February and August every year
45. Latest valuation of securities not done.
46. Latest Property inspection report not on record
47. House completion certificate not obtained
48. Not obtaining prior clearance from next higher authority at RO/CO/HO before
conveying the sanction in case of third party property obtained as collateral security.
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Assurance section
Regional office,Kurnool
 49. Failure to conduct Credit Risk Rating as a pre-sanction exercise for borrower
accounts.
50. Failure to register our charges with Registrar of Companies (ROC) in time.
51. Non-availability of Loan papers/ Copies of loan papers in case of suit filed accounts.
/ Papers handed over to Panel Advocate leaving it to be treated as Missing Loan
Paper/s.
52. Allowing operations in the account without proper renewals/permission and delay in
renewal / extension.
53. Delay in identification/reporting of Quick Mortality of loans
54. Non reporting of devolved LCs (which are not cleared out of the margin held or from party’s
own sources) as per extant guidelines.

55. Not obtaining Legal Audit report from the panel advocate other than advocate who
has given LSR after 36 months but before 54 months. (Cir 489/2014 & 694/2016).
56. Non-compliance of guidelines while maintaining Government subsidy advances
(opening zero interest TD for subsidy, Disbursement, end use verification and Submission of
Utilization certificate to Subsidy releasing agency; etc.)

RECOVERY RELATED:
1. Not obtaining AODs / Letter of Revival (LORs) before expiry of loan papers.
2. Signatures on AOD/LOR not matching with that of the existing loan papers.
3. AOD date not updated in ba020
4. NF 817/607 permission not obtained
5. Suit file not done if NF 607 permission is obtained
6. Latest status of Suit filed accounts
7. Latest status of EP filed/decree accounts

INCOME LEAKAGE:
01. Non-generation of “dump report of Interest Paid, Interest Collected and
Commission” and Non checking of the same before sending PRR-18A. (Cir
296/2009;
02. Not obtaining undertaking letter as per Appendix-12 of BG Manual / Non
diarizing of due dates for collection or debit of BG commission / Not obtaining
Standing Instructions to debit deferred commission, where it is permitted by the

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Assurance section
Regional office,Kurnool
 appropriate authority to collect BG commission on a deferred basis or instalment
basis. (Cir 183/2017).
03. Non-collection of upfront fee / BG fee as per norms.
04. Excess interest paid without levying the penalty of 1.00% for Premature Closure /
Part Withdrawal / Premature Extension of Domestic/NRO term deposits of less
than Rs.1 crore wherever applicable. (Cir 528/2018).

COMPLIANCE RELATED:
a. Deficiencies observed while opening of Current Accounts
b. Non-compliance of guidelines related to KYC norms in opening new Accounts.
c. Non-compliance of guidelines in fixation of Thresh-hold limit of accounts opened.
d. Non review (or delays in the review) of the risk categorization of existing
accounts using option No. 170070A in Business Objects; (b) Not updating the risk
category and (c) Non sending of confirmation to the respective Regional Office.
(275/2017 & 323/2018).
e. Deficiencies in handling of TDS matters; Not updating Form 15G/H, correct PAN /
Govt Category4 / DTAA / Certificate5 u/s 197(1).
OTHERS:
1. Poor Spot rectification.
2. Non-follow up of long outstanding entries in SL, SA, SD, ATM difference etc., and
negative balances in GLs.
3. Failure to generate and review periodical mandatory reports.
4. Fraudulent activity by insiders or outsiders due to lack of due diligence by staff.
5. Non-safe keeping Undelivered ATM cards or Cheque books in double lock.

IS AUDIT:
1. Not maintaining password secrecy resulting in frauds / customer complaints.
2. Non-deletion of profiles of employees on long leave and transferred employees.
3. Non-availability of AMC for hard wares and UPS, Licenses for soft wares.

Above mentioned queries are commonly raised during RBIA of branches. Concentrating on
rectification of the same before commencement of RBIA reduces the risk of down gradation of
branches

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Assurance section
Regional office,Kurnool
 ******* HOW TO REPLY RBIA QUERIES********

Branch to note following points while giving replies in darpan portal rbia, simply giving
"obtained and kept on record" reply is not acceptable. Branches to start rectifying queries
immediately.

 For insurance mention policy no and validity date and confirm our bank clause in it
 For aod mention aod date and confirm update in cbs fp ba020 if not taken as per
bank guidelines is written then mention obtained as per bank guidelines along with
aod date.
 For ec mention ec no and date and confirm our bank charge in ec
 For review copy mention review ref no, date and confirm compliance of review
observations
 For cgfmu/cgtmse mention cgpan no if covered in present quarter mention in which
quarter it is covered if it is od/occ ask whenit is renewed
 For cersai mention cersai security intrest id
 For any inspection reports/valuation reports/pre and post sanction reports mention
latest date
 For modtd related queries mention modtd deed doc no
 For recovery action mention details of action taken in detail
 For udyam reg mention reg no
 Any sanction copys/review copies/ratifications/suit file permission give replies with ref
no's and date
 For stamping related queries mention adjudication of documents done by adequate
stamping
 For cic reports not made available mention cic score and also confirm score is in
deligation of branch power or not and also confirm cic taken at the time of loan
sanction or not
 When branch is reporting lapses branch has to mention the reason for reporting lapses
and further what are the recovery steps branch is taking like sending recll or legal
notice/suit file/waiver of legal action permission//possession /ots/write-off

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Assurance section
Regional office,Kurnool
  For end use not verified branch reply should be unit visited on and stock/asset is present
in the unit and end use is verified
 For legal related issues get legal opinion either from branch panel advocate or our
co/ro legal section and then reply everything should be in detail enforceability also
should be confirmed by panel advocate/legal section ro/co

“True Prevention is not waiting for bad things to happen; it’s preventing things from happening in
the first place”

Assurance section
Regional office
Kurnool

Need more info? contact us immediately

R Muni swamy : 8790505288
H Hussain Vali : 9985690242
B Manoj : 8985030927

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Assurance section
Regional office,Kurnool