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 About the Author

Born on 10th February, 1969, commerce

graduate from St. John’s College Agra,
Ishwar Chandra is a Fellow Member of
The Institute of Chartered Accountants of
India (ICAI). He is a Chartered Accountant
practicing since 1993.
He holds DISA (ICAI) and Certificate in
IFRS and Certificate in Concurrent Audit
of Banks from ICAI. He holds CISA from
Information Systems Audit & Control
CA. ISHWAR CHANDRA
Association (ISACA) USA since 2004.
Mainly practicing auditing, his major work
experience includes Concurrent Audit, IS Audit, Stock Audit,
Income & Expenditure Audit and External Audit of various
Commercial and Regional Rural Banks and Internal Audit and
other assignments of PSUs/Govt. Deptts.
He is an empanelled faculty with Internal Audit Standards
Board of ICAI for ‘Certificate Course in Concurrent Audit of
Banks’, and is also empanelled with IT Committee as Faculty
for post-qualification diploma course in ISA. His approach and
procedures articles on auditing of banks have been immensely
published in ‘The Chartered Accountant Journal of ICAI. He is
author of Five C’s of IT Policy published in ‘Internal Auditor’
of The Institute of Internal Auditors, (USA). He has been one
of the Expert Reviewers of ISACA’s CISA Review Manuals and
is a contributor on auditing to ISACA. He has participated in
International Federation of Accountants (IFAC) consultation
paper ‘Improving Auditor Reporting’. He has delivered lectures
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on auditing of banks at ICAI seminars organized by CIRC, SIRC

and NIRC branches/study circle and for GMCS course at Agra.
In his 28 years of professional career, he has been associated
with various boards/committees of ICAI. He has been a member
of one of the Financial Reporting Review Group constituted
by ICAI and has acted as lead reviewer. He is associated as
Technical Reviewer with Financial Reporting Review Board,
as Peer Reviewer with Peer Review Board and as Resource
Person with CFMIP of ICAI. His academic associations include
the Institute of Company Secretaries of India (ICSI) and the
Institute of Cost Accountants of India. He is a founder trustee of
Shri Rajendra Prasad Munni Devi Agrawal Memorial Trust, a
registered public charitable trust.
OTHER BOOKS BY THE SAME AUTHOR
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‘ ’ (Taxmann
Publications Pvt. Ltd.)
Articles by the same author Published in “The Chartered
Accountant” Journal of ICAI
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u ‘Auditing in Core-Banking Environment: Some Special

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Considerations’,
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 Preface to the Fifth
Edition

I am grateful to Taxmann for bringing out four editions of

the Practical Workbook for Bank Statutory Branch Auditors
timely. Now, it gives me immense happiness to present the Fifth
comprehensively revised edition of the Workbook for Branch
Auditors.
In last one year, COVID-19 unprecedented pandemic affected
the lives and business adversely worldwide. It affected the
business across the economies and sectors. Particularly, it had
several immediate adverse effects on MSME sector that led the
Government to come out with several regulatory relief packages
and concessions under Atmanirbhar Bharat. To overcome this
COVID-19 stress, RBI came out with various announcements
relevant for audits of financial statements of the banks. Based
on such critical changes, I have revised this edition thoroughly.
In this edition, two new Chapters, Chapter 11 ‘Audit of Special
Mention Accounts (SMA)’ and Chapter 13 ‘Audit of Provisioning’
have been added. Chapter 5 ‘CBS Environment: Useful System
Generated Reports’ has been thoroughly revised and CBS
reports helpful for auditors and generally available in Finacle
10, B@NCS and Flexcube have been added. Chapters ‘Audit of
Income Recognition and Asset Classification (IRAC)’, ‘Audit of
Restructurings’ and ‘Performing General Ledger and Profit &
Loss Audit’ have been revised with reference to RBI’s extant
guidelines and ICAI Standards on Auditing.

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In September 2020, RBI issued a revised LFAR Review making

it current and more informative. Hence, Chapter 16 ‘LFAR
Procedures’ has been revised accordingly. To seek information
from banks’ Head Office and from the branches, various
formats suggested to collect the information have been modified
based upon such new audit requirements.
Of course, I have been able to use several contents of my
another book ‘Bank Concurrent Audit Procedures Manual’.
However, to confine myself with statutory branch auditing,
procedures on auditing of operations have been skipped. As,
it is a reference manual cum audit note book, I have made all
possible efforts to make the workbook a one stop reference
for branch auditors and to keep the contents complete and
current. Yet, human errors/omissions are quite natural and I
am confident readers are kind enough to ignore. As it is a live
document, auditors are suggested to refer, extant updates, if any,
while auditing.
All constructive feedback/comments from the auditors are
most welcome and will be gratefully acknowledged. While
revising the edition, I have referred several sources including
ICAI Guidance Note on audit of banks, RBI notifications and
others. I am grateful to all such sources. I am thankful to Shri
D K Agrawal, Ex.-Chief Manager (BOI), my friend CA Suresh
Advani and Shri M Venkat Subramanian, AGM, Indian Bank
for reviewing the revised draft of the workbook. Thanks to CA.
Kapil Goyal and Shri Jitendra Goyal for assistance in preparing
the revised draft. My deepest thanks go to my wife Smt. Reena
Agarwal, my daughter Miss Pranchal and my son Master Sujay
for their love, support and patience.
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March 2021
 Acknowledgement

First of all, I acknowledge the grace of Almighty that made it

possible to me to write the book. I want to record my sincere
thanks to my friend CA Suresh Advani who encouraged me
to write the workbook and to keep my morale high. I want
to record my gratitude to CA. Amarjit Chopra, Past President,
ICAI and Member, Quality Review Board and Statutory Central
Auditor, State Bank of India for sparing his valuable time in
reviewing the draft and suggesting improvements. I am grateful
to Shri B V Upadhye, Ex. General Manager, Bank of India who
vetted the outline of the book. I must be sincerely grateful to
Shri D K Agra­wal, Chief Manager, Bank of India whose help has
been ever available to me throughout the book and for putting
his valuable time and efforts in reviewing the draft thoroughly.
I wish to record my gratitude to CA. Surinder K Bansal and
CA (Dr.) D S Rawat, Statutory Central Auditors, State Bank of
India, CA. U N Marwah and Shri M. Venkat Subramaniam, AGM,
Indian Bank for sparing their valuable time in reviewing the
draft and suggesting improvements.
I am thankful for the assistance provided by Smt. Reena
Agarwal, CA. Kapil Goyal and Shri Jitendra Goyal in preparing
the draft. I am thankful to Taxmann for reposing their trust
in me for publishing the work and coming out with the
publication timely.

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During writing the book, I have referred several sources

including ICAI Guidance Note on Audit of Banks, RBI and IBA
notifications, several websites and others. I am grateful to all
those sources.
Finally, my deepest thanks go to my wife Smt. Reena Agrawal
B.Ed., my daughter Miss Pranchal and my son Master Sujay for
their love, support and patience.

CA. ISHWAR CHANDRA

 How to use this
Workbook

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I intend to write this Workbook as Audit Work Programme- -
Audit Note Book. To use this book in an effective manner, I have
following tips to recommend:
- First be acquaint with relevant background information,
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Statutory Provisions, RBI guidelines and ICAI

Standards on Auditing.
- For the sake of convenience and to move in a systematic
manner, entire branch audit work has been segregated
into five stages. For each stage, ready to use formats, to
save auditor’s time and creating audit documentation
simultaneously, have been suggested Use these formats
effectively.
- Keep the Checklist of tentative audit requirements (given
in Chapter 5) handy and have continuous rigorous follow
up with the branch management and controllers to collect
the information.
- Document the communication made with the branch
management and controllers. While communicating the
branch, mark a copy to the controllers also.
- Keep tab on audit progress and time budget.
- Note down the audit observations in the workbook itself
and attach additional sheets, if needed.

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- Important notes to auditors are indicated in boxes. Read

these carefully.
I believe this workbook would help minimize the chances
of lapses and omissions and would help reduce the audit
risk, besides documenting the audit work simultaneously.
Overall, workbook would help auditors accomplishing their
branch audits in a more purposeful manner, eventually giving
more comfort to the Statutory Central Auditors, Boards and
Management.

CA. Ishwar Chandra

 Chapter -heads
PAGE
About the Author I-5
Preface to Fifth Edition I-7
Acknowledgement I-9
How to use this workbook I-11
Contents I-15
C
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INTRODUCTION TO AUDIT OF FINANCIAL STATE- 1

MENTS
C
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PRE-ACCEPTANCE PROCEDURES 11
C
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POST-ACCEPTANCE PROCEDURES 15
C
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PLANNING CONSIDERATIONS 17
C
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CBS ENVIRONMENT : USEFUL SYSTEM GENERATED 26

REPORTS
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: : :

OFFSITE PLANNING 34
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ONSITE PLANNING 38
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PERFORMING PRELIMINARY (ROUTINE) AUDIT 42

PROCEDURES
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AUDIT OF NEW ADVANCES 52

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AUDIT OF CREDIT MONITORING 77

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AUDIT OF SPECIAL MENTION ACCOUNTS (SMA) 98

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AUDIT OF INCOME RECOGNITION AND ASSET CLAS- 104

SIFICATION
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AUDIT OF PROVISIONING 129

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AUDIT OF RESTRUCTURING OF ADVANCES 138

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PERFORMING GENERAL LEDGER (GL) AND PROFIT 154

& LOSS (PL) AUDIT PROCEDURES
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LONG FORM AUDIT REPORTING (LFAR) PROCE- 165

DURES
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TAX AUDIT REPORTING PROCEDURES 226

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PAGE
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BASEL VERIFICATION PROCEDURES 236
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SPECIAL-PURPOSE CERTIFICATION PROCEDURES 242
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ISSUING INDEPENDENT AUDITOR’S REPORT 249
APPENDICES 262
 1
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4
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8
PAGE
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Contents

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INTRODUCTION TO AUDIT OF
m t t
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FINANCIAL STATEMENTS
t
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I-15
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o f i r s o f i s Fr b
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How to use this workbook

r u v e n ibe u t u o t u u n a
t u
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t S A P A S A A Es a
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Preface to Fifth Edition

a n h
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Acknowledgement
g o n

About the Author

c a

1.1.1
1.1.2
1.1.3
1.1.4
1.1.5

1.1.6

1.2.1
1.2.2
1.2.3

1.3.1
1.3.2
1.3.3
1.3.4
e c r

Chapter-heads
R A B

1.1

1.2

1.3
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9
9

9
10

11
12
12
13
13

15
15

17

17
17
18
18
18

19

20
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PLANNING CONSIDERATIONS
A A s 3 S i gu
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1.4.1
1.4.2

1.4.3

2.3.1
2.3.2

4.1.1

4.1.2

4.3.1
4.3.2

4.3.3
u s o c o e o B C
A Ast C A C G C R I
1.4

2.1

2.2
2.3

3.1
3.2

4.1

4.2
4.3

 E
21
23
23

24
24

26
26

27
27
28
31

34
34
34
35
36
37

37

38
38

38
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4.3.4

4.4.1
4.4.2

5.1.1
5.1.2

5.2.1
5.2.2

6.2.1

6.3.1
6.3.2
6.3.3

7.1.1
7.1.2
a a B B n n r pa
S M C C K U P AM
I-17

4.4

4.5

5.1

5.2

6.1
6.2

6.3

7.1
 E
I-18

39
40

42

42
43

44
45
46
47

48
48
50

52
52
52
53
56
57
58
59
59
61
G
A
P
fy
m o
g
u snc eP)
d h me mC
n
i n c est
a n t oA
PERFORMING PRELIMINARY (ROUTINE)

n s r a i i
s cR )
c
e t
n o r tn nI
e B e I o
r e m eo fg( h
G
- m e e hC o d )
s
r e M h
t Sr: ein t A n
e t
a ea cn n / a

AUDIT OF NEW ADVANCES

v t s
’ f ce nio u s o
E S r o nY es o s L
l l a s as r i c e
AUDIT PROCEDURES

a g a e e
i l u e v c c e
i
t n i Y t a ho A s x g
n i c s i
v Bio dr n s
t E a
e n n u i /v s AP C a n / g
t
t n a o t
c s e n N o e E r
o a
l n i A e r o fd
o I L U o
S P P i
F v cP i n r m s M
T
fs e g nf t
a g ta
i d o e t A
N
o n f r n ao
l i n d n n t g n D (
E e i o P i a l
i i
h uio a c n e / s
T sti f s t c e e
8

9
N nli k t
i o o ba n s c At A S a
r m D i
t
r d l h u
O
C
oc
i i o u t)
c C dt
ah o
c
n
o o rac s P
N s y r
A
e
g s O r
e
t
a a W A eCs e et e i V o fi
f k n t
i n t T p
t i c f r g a n (
cF
i s
’ r f
f o n
i hi R a e sss e o a o n r u s o
r
d t
i r o EM t Lw d c
i l
p e a h n o s i i r o e
i P
o f u f r C L n r k A t
ned t e( Gar n i m ul o a P n c i t
I
gr
i
d
s
e hs o
R ge a r
e a dC y i
t l
a o d a m
c
A
l
i
c
s
n
nC r t e V et c a r L B i
u u gg g nY
i g S ce n i
l s u n u r a a
i k A r t n e e os e i e t g a e i
t e F g
y
f a l
d nn
i n
i a n i
c n n rs t c r l n l r v l a
i
t e a e
c y
f
a
h y
f pec k n i
t i
t PA,
s
i
s
n
o n
u
d
u
c i
s
E
M
p
i
t
o
s o a n
n W n o i C i mrre a u u yon n c e i u l n e u a
ef r r r r ouh l
a o o r o e o
i c r
g o S u o k s
a
do e
t P e f e a i t o M M a o
I n Vo V CCC B R R nnt
i C R c r A H C T C L
e
I n
i
i
mgm s u
d p
g t ico o t
i
n
i u l
e r r d
7.1.3

8.1.1

8.1.2
8.1.3

8.1.4
8.1.5
8.1.6

8.2.1
8.2.2

9.2.1
9.2.2
9.2.3
9.2.4
9.2.5
9.2.6
9.2.7
9.2.8
s o r eo t
n u
U R PRN I A
7.2

8.1

8.2

9.1
9.2
 E
62
63
64
65
65
66
69
70
71

75

77
77

79

80
81

82
82

82
85
86

86

89
91
91
G
A
P
s l
a
t
e n
s o g
s i
t t
n
A l
a
i
d n
eo
i
r :
d t
s
e f
o e n
/
o
d
A
mit n
u
e s
s s i y en o d
t r e r t
i f t
a o c c e
n e r e d o b t M) k o c g
a t
t t t
o d t s S n h g
r e S n d a A a
AUDIT OF CREDIT MONITORING

a L mA e u yyP
l R B d f l
u f l r A F
o of m a h e / o
G r
e n ro e r t t Q
(
e
h ) t d
s f d o Pnt r F n r t L c e
t o n i fe i
u l oar t O u R
n s t u t o a Muo o
t d
e n u m q i T n d
m . a n
e s l
o ye
t e t
n /Qe
s
p d ( o n
a c o l
l s i
l r R e t dR e s
t Cs a
n t L m i e iui : t n n g i /d )
s
t r e f y B R b s ) o eae r m s S
S i O P f a f aeq r
e A P m)n c a i nun
T s a P g o r t F :s h L oF W
N o
p r V
I
t
S d n g o n
uR
w R s
dr eDa
t C r i
t E
E e e / i
t n f o ( a Om s e a f (
n od ue

10
T
D v
l C d ) a n i k cn r
r s t S e v r o s
N i S n G ) u t
n r ca o t aw
r S Mor i
t O e l
O - S a B d C o o n Fro s(r f i png a
C / N s ( e L c u w As B u t r y Oi n
m d / r s k ( s o e :or e o dor b ae
t u r n g
i
r l P o e o t i c s
r v c eB ea P c a ro S
e o I t e v i D s
i m e t
i i c t DD / e r e ) s
T G L c t n d / D a t d t A a s ) S o vph gA t w
s t t t e n I e e r l ug a
r l
e u -gR f p oi nF l e
n s s s r a r s / F u e g d kn o m S i R u i
a n n n i
D r s
e C a n) l aAn
f / pin e Rlo oi M n/
on n ( a
f
v
e
o i i i a e f h oC
i a e s i on g su s oat Q n e i rs e
l a a a o u t o c t L i n - g e p e o T s a t R
e g g g t G n s r a ( t
n Dri
o o o o a cu r Br ( i
t / i
v o
i Wn D l
l a a a s a r u i
t t e lt s Cii
s l nr u /er t c s r s u l a
c
i n n n n k r e P o i
d n d u c i
v -v F ac d kpo e s
e e r yo u u
h a a a a n a t
t l ge o u fe
l o n o d vs e cOp p c pve l
r c f
l n
e o o o o a u e l
i er i r i rr
i or e dn c one
t s x ui a c i n
V L L L L B G L B NC t
c P WD P NP R AU o S oR n E SD EA W A
r I
u p
d t
o i
9.2.10
9.2.11
9.2.12
9.2.13
9.2.14
9.2.15
9.2.16
9.2.17
9.2.18

10.1.1
10.1.2

10.1.3

10.1.4
10.1.5

10.2.1

10.2.2
10.2.3
10.2.4

10.2.5

10.2.6
10.2.7
r d
9.2.9
t
n u
I A

10.1

10.2
I-19

 E
I-20

98
98

98

99

99
100

104
104

104

105
106
108

109
110
111
111

112
118
120
121
122
G
A
P
.
c
t
t
u
o
t d n
o
e
n
i e i s

AUDIT OF SPECIAL MENTION ACCOUNTS (SMA)

b ) t t
a P
n
o
A a
r
c
i s
’
D
O
V
I
i M Cle f I /
t Le i B d s
AUDIT OF INCOME RECOGNITION AND

i S Ic e s
s s P
s
o (
s Rc
v
i
t t
e a
l
R
:
A
P
n
a V
p t C(A c s C s N ) K
e n e s n s
t
u u oe f
f A t
e a s b ,
s
d o t c E , s o a e C
r c gn f n s L d D S
ASSET CLASSIFICATION
e c nr
i e o o A l e - N
v A t e i
t r a i k
) o n r h t i o r f
i o ,
s
A y o od n n f u s o t
M l i pa eta gg t
l s B i
s
n t e- ma on s
e u a
l o
S o n Rn eD ci n c C /
s d p
S ( e r en i i
T s t
o M do i r Rio l r
g s k e
t e
N t
n N l nn u a eis e
d A
t
n
c
o n D
E u a ar ql v i u t u m
: o eu mo f
11

12
T
o n i
c ff Ran u o o S o r
N
c o e o s or G n c t c e
O c i p ne -r cP / s o c s s
i s T
C A t
a o S our d tG nd s n i A n D
cls i n I e o t i
a ) n t
s
n i f t s n ed nn l
p i
t i
n n g L / a n
o f
i a o s a a u mn ea i a s g a T d o i
i s s e ce
i ) o vn s c cne o A ( e L a
t
n s s
e
ni
or f
i Mng s
e
r
g ea i
r o t
p n i
f i
o
c L (
t s s
a l g
e a
l r i o t gm Dti e i
r i
s l e i n h a a
C t t g n lni n
i k as c P s e g d a c r s
M S a e ea s l c ni -ca n a d R n s e o r u e
l ff ct
i dni o e e a an i l l i
u e i
d e r u t
l c
a o f a I es r d B Mha mif o a
r c r Cs L u n
i sno i
s c yPv i u i f es C e tG m a u t P c
n c i s - l d u e Ac t s e o r
g d hi m s i a
e s a b r do e G i s a y n s y c e sm r l r v
o
i p a g
i l u a nr c r Pe y l e e s e n p c a i e l
i g d
t S BS C s EaP o y B NM SC K G AK I U o CL T B A A
c r e r
u p K P
d t s t
o i ’ i

11.1.1
11.1.2

11.1.3

11.1.4

12.1.1
12.1.2

12.1.3

12.1.4
12.1.5
12.1.6

12.1.7
12.1.8

12.2.1

12.2.2
12.2.3
12.2.4
12.2.5
r d I d
t
n u B u
I A R A

11.1

11.2

12.1

12.2
 E
123
123

124
125
127

129
131
131
132
134

138

138
140

141

142
145
147

147
149
150
151
153
G
A
P
s s
E ’
n E
r
o
M
l o
i r M
E f S a t o
f S y
M M r a t
M i
s k u t
n k m
S A r o t e r o
o t a o t a s
AUDIT OF RESTRUCTURING OF
M P s w n N m w l t
o N n sio s a n
t t o e nt f e
l e n C u
i
AUDIT OF PROVISIONING

n s m s aa o p m a l o
s
e e i a E oc
l t a o
l a c
r r v r M i
f n m r r c
u e o F S gsi e I f g u A
s f r l ns v r l n t
a f
i P a M i
t a e e a i
t a n
e d r i s l d i
t ’ s N a
e t s
t f i
x c e n n s
t i
x f o
M n h

ADVANCES
S n h ee o eet t u ee e o L
T f o t ds n ds l
O fss n s f t
N e
i s us o o i t us s o n a
E l s n t rA i
t a s c rA E u n
13

14
T e n o n Pd a gn n e
j Pd M g o o
N R o i
s e e t
i ni a o ‘ e n c i
t
O i n s i r rs l i
r r rs S i
r c a
C s n t o e v e e s i
b ude o P e s M u a c
A o a i
t r o f
f de a t L ‘ de t u
P i
t r i u r i ntr c a f f ntr f c n d
N a e n d P d uS h ugr o o uS o u o
c d
i g e f f e rn r E
s f
o i
f s o c o o s gf R t
s g g gf g t
s g d
d i n c o e no
i d e w n
i n
i no
i n
i e n
i e
r g s
s s o e r n n n r n r o r r r n r r r r
a n a r C R s P o o i
l uo n uy u s uo u u u
C i l e e i
t i
t e t i a ed t t e t i t e t t
d C w l e r l a a d c t l mut c t c r c t c m c c
t
i a tro a
i m u a
r c c i ulu a io ui u u ulu u i u u
d r
g e c o n d e i
f i
f u ro
t v
i t
- rm
t r
t d ro
t r
t t
- r
t r
t
e p s r e c o e n i
r i
r G s s v e h s a
l s e s s s e s s
r s o p n i c e e e e e e nit e a e c e e e n e e
C U AB S I t o G V V y RR R Ow RC R o RR R O R R
c r e r
u p K P
d

12.2.10
o t
i s
’ t
i
12.2.6
12.2.7
12.2.8

12.2.9

13.2.1
13.2.2
13.2.3

14.1.1

14.1.2
14.1.3

14.1.4

14.1.5

14.2.1

14.2.2
14.2.3
14.2.4
14.2.5
r d I d
t
n u B u
I A R A

13.1
13.2

14.1

14.2
I-21
 E
I-22

154
154
155
155
156
157
160

160
161
161
163

165
206

207

222

226

236
G
A
P
)
s n
A s n o
t i
PERFORMING GENERAL LEDGER (GL) AND

S n i s t
PROFIT & LOSS (PL) AUDIT PROCEDURES

( s e
i a
g u n t t

TAX AUDIT REPORTING PROCEDURES

n o og i
l f u

BASEL VERIFICATION PROCEDURES

i
t c
i c
i
t i
b o f p
c n s n o m
i a

LONG FORM AUDIT REPORTING

d A ad m i o n o
u 3 r s n e L i
t o c
A 1 e ne t t a i
t )
n 0 g a-
r l I n u a R
o 2 d n t e l u s
t
e To n g n a l An

(LFAR) PROCEDURES
s ,
t s L ln u es n o v a n Rio
d c m a o s i i E v e
r A e )
e i
t d c n t t
a : E m Cct
a t c n n c e n t : (u
d s I s
l i ea A p o n s m od
n e
i t a f
f t x C e n s o i
t
S
a n e n O o g s E o
i n C a o
T
t a e r ( s Pin s d m t o
i Rnr
t
N S p h u l s fd o d n e a t d
E S o a e o L n a l d a n sI
15

16

17

18
T k m J n n n s p n d a t f
N r A o e
c o i
s ne & a n m e n s e
s e
O o C C n r s u oL t es o I m e e s i
r
C w I a e
f r i
t : fi i e m r AB
e r r l s e B a s o m s
i e m u
e e a n p d cer r o v t o m d dk:
m d d B a m e i P c o t
i c o e er
a n n r I s d w n r m e c c t o
r u u r T a no r I P e o h
F s s o
f f g B I o f
f f m R r gw
i
y n n s o n
i gP s o o s o e R P e e
r o o e y z d no
i f e y y e C e e t wm
o i
t i
t r n i
n n t r n n r t
t n en i -a
t a a u i i u a s u i i u i
n i o t
t o d k r
a
l g g d t t f
- ues d t t d a mit i i
t u sf
i
u i
l i
l e u u n l
a c e u u e l a mta A Rel
g b b c r r o vx c r r c i
J mt
e o c c o c c o oen mn d oas
R O O r S S N EE r S S r & Cm oe e
t t
/ P P P
h he Cm s lb
a
l t t R s sl ile e t r
a i i n g i e

15.1.1
15.1.2

15.2.1
15.2.2
15.2.3
15.2.4

15.3.1
15.3.2
g d d A o op amp g p d
e u u F h hm l
i u an
L A A L G GI J I S Cu

15.1

15.2

15.3

16.1
16.2
16.3

16.4

17.1

18.1
 E
236
237

237
238
238
239
240
240

241

242
243

245
246

247

249
249
249
252

252
252
253
G
A
P
t -
p s
t l
a
a
c
m n
D r i
o eer u n

ISSUING INDEPENDENT AUDITOR’S REPORT

: r R u
t
n
)
s P dd
un H R t m
t ls
e E
S
d
n s uO s
a
n e
r m
s m o)M
SPECIAL-PURPOSE CERTIFICATION

l P a t Sf s
e ote o
a s
s ( ) n ai
t Ce
r S y o n c
e e
s
s
e I dWe i
s I :n
I
s t s s ( i E u N- Aa
e a
l A i n s s(m B -k a Cn
p
y
l
o t
r
p o
i E bn
u s e t av i
Ir
e
T C i r t M So h n n fv
d e
t n iSc e ja e o s
r d e
r n e S tt
s e 0o t
r
e n C Ef v M e c) m o j 6G o

PROCEDURES
m a b r eS
SI n Ya 9
4 2h p
o s l
a reo u o te r aA 9 )t e
S t e o s or S t rS e y - Ai
T s i n i e t n neC v a ) 1 Sw R
N
E
u
C
t
i
r
r
e s
l
o r
u
c
ehe t
s o Ik(
i n a
o d
G o M ,
t ( d t
i
t f St e t y c d

19

20
T
l u x e t s r n ae d yRL k A ge
N e c E r r o s cng e e oWs i n t r 3 ng
i u
O s e u o p e
r i
l t v L b o n o n 1 t r A
C a S ys) d P x b i n )
I n A- N o 0 i a
bI e u t I b lyu w i d h d
B d c l
i E s ua nPR u al lS o alY e t 2 s uc n e
f e dA o a
t d o Pd a( S nat i
s yA m a
l ,
t n Ae o i
f
o z
i eC
t r e e p
x dp oe t to
i c
i s s
i aD a u c o s i
n i
d
n n
g a
r
E
( P R s
a E nU Lv s
e a m e
r m d(e r g
e
A i
t
a
no
oh i
p o
o
i o s y y b ad pti r coe nnm F s l st M
t sn s r r d ean on e unn t m e o y R e
i u dh O
a c e o e a o d e t re t doI o es i
s e r g n g f f
c e r i r n t n l
i a s Cc n Ecr C Di h o n a e ri
a t o o
i
f R uut u i a u a r g I c t i
i
s l
e
st
oi d m
i
l
u f
- v
a
on
pi nIn n nEt o n nMS a
l k p
m
R
I
dw
nn m s
e
s s pst e l g n - rt ot o ooc o o ns u n ao r p
a
l a xn c
o
e
r e o n oa ee
t
n e ete
t t g e edo
t t
g
e
a
B
o
C
B
R t
S i o
F
y
T
C B EI r P R N U CR a a a n S a a oti t
P cym c cg i l c ch on R
fia fi fin a
r fi i e
fii v /
l
t i i i i
i t tlb a
18.1.1
18.1.2
18.1.3

18.2.1
18.2.2
18.2.3
18.2.4
18.2.5

20.1.1
20.1.2
20.1.3
20.1.4

20.1.5
20.1.6
d tp
r t
r t
r on t
r r e g
u e e e e l
e e e e vu
i e
A CR C CbC C CL S L

18.2

19.1

19.2
19.3

19.4
19.5

20.1
I-23
 E
262
263

269
271
275

282
283

285
286
288
289

291
293

296
I-24

254
255
258
258

259

259
260

260
261

G
A
P
- A G G S D T E
e t d E M
-

-
h e N N E O I B
t n
t t M I I R R N L O
n ep R T N U U E T
n eem e O N N G T
T S (
e c S E R
i r
h c F E U S A I C E R P S
i gAc N C O I L F A ( R
w ) f
fas o
f I I C S P S
S
U
R M R
E
U D E
t
r M una d G F
F C Y T E T S D E W
o A Sah e N O A L
A I N S N
T
N
E R O)
nMr
p r R I D I E I I C I
e h K i e t K H F N U S O U RT
r p ( a ao h r O E C O A A U R T N R Q RN
s a s t oit t o T E E ( B S N I P E OE
’ r r
e b t d a p I
D S
N N S T E D BM
r g t Oeu gs e A O C D N M N R R
o
t a t uA ses R U ) R IS N W N U E A A S EE
i r
a h a od e t A R B TM A E E F T GG
d M t e cen i O AE I I - O V S R RA

APPENDIX A
P p d S R V C L
S u a t yeh
t nt U L O UT R O N R O AN
T a ) r i i ct ea u ( T LS A E E C M O P LA
e M g d l
i n r dri A O S S AY V R T A IT O E
N
E h o a u b ee i
v p e
I
V T T VS D L R N F S F R RM
T t E r A aidft Ero t E N N EL L A A I O I
VUN D OH
N f ( a nv a a E C U T S D FC
o P y I tp i R E &O E OO E ET)
nEo
O r e n i r P M R I I Q N I R TN
C ted h e ) d p p M Y T E S RC TS EA
n i p t
t M K1 atiti t uA o O E E YT Y R
M Y PC I
U AI ER
eif a a O g0 fda t r Ad r T R R DN & L A L ,A Q RL HB
t
n d r
g M ( n7
i
o u t
ie
n o en p
p N
I
U I
U E UO T A E
N
E
V
A A
P) E EE S
oo a f r t A eAm m p
e ha A O Q Q L TC
SL S N
A F O
N
A NC R NV -M
Cm r e a S cei t I O N EI T
a o t
t ch
i nta Lge R gcy e I
T E E F YA C Y O M Y NI
I( N GAT CO
ds P s
i a n p ei t nn h A R R O RN R N F R O AR
ni n s M ua ur dga i
d i e t C F F R AR Y
L A O O A TD I MT FF
an o a mgr qpens u wi g I O O P N R N S S N NE T EN ED
mno
i i h r eoo eic n N - IE I I I I ET A TE GE
n p e mra s
nprpE A i
v f i U R R H MT E M) R S M MEC M ST N
ri i
p m h e e f u E E C IN T IL A Y I R YY AI
op t oa opmh h eu s
s
M
TN T N LI R LE P L L EL SR PA
-
Fo O E O Cp CAI t t RS I M TO T A ED A EV M A E VL O SA ET
g O EI E R RN U RE O N R OO F BN NB
n C LT L B PA Q PL C A P MC N CI OO
I

20.1.10
20.1.11

20.1.12
i
t
20.1.7

20.1.8
20.1.9

20.2.1

20.2.2
i
r

:
:

:
:
:

:
:

:
:
:
:

:
SBA 2(10) :

SBA 2(11) :
W

SBA 1(1)
SBA 1(2)

SBA 1(3)
SBA 2(1)
SBA 2(2)

SBA 2(3)
SBA 2(4)

SBA 2(5)
SBA 2(6)
SBA 2(7)
SBA 2(8)

SBA 2(9)
20.2
 E
299
301
303
309
312
316
319
321

323
325

326

328

334

337

341

342
344

354
356

357
360
G
A
P
) D / VT N EDPC ) FT RE .E D ) S
C S T S
-

E OC I . M E

-
S C N O HNUV OD EH RH E E
E K W )
C R CA I
T
TAOC TU TT .TO T M S
I
I ( E L U EX FSR( CA T W C A R
T
I S N ( A ODGN EF FI L S P
R N E T RA C EY LO EON E M R
A A R S T
I E E UT I
F SULI O PR
SO TY T A R ( E
O E D R C T NAES NT ASL -
L
L
/
D E E F N IE I
T ORVS ET
EI C I 9 S
E
s
E
T
U
G L E T R O A DM
NO O IF I
T EM
RU
MRR IUJ 1
- S M
N
E
N T FTD
E S A W C N NE) AKL T
NA EOT O I D IS S
R N R A F O
T
I EC
PN) ( DNHM IT GHI TAN I RE M
R A U
E
I R O I M XIT S72 NAGO KS ATD RTA V PC M U
I O T V A
S
S
S E E R R9 EBIC RN GUU ESH O
C
RN
EA R I
D
/ L U F I. CNS
H S L
L
U
E
R G R I R
YOO AR MFHC E I
OS NAA O TV O
F E
N I E M D P FS. MOEN WE EGH FOH R E ND M
S C S K N)E

APPENDIX B
A O A I T B N A(3R F. OSHA ES FNC OTI ) O G EA E D
S I T R T N T U A AG T TL OIN G S F A M
T C T E I A E S FAT CC MP T TAE W K MF N
A G M E 0I 5 EE FGI AA TNA E A
N F
O I R A I B L F C O4 E1 RP OI RL AI R
ATH E
(
K C UO H L
E V F F L F F O T D T0 MOB MNT R A IG C
T
N E O F O O R
CNU A2 ESSV FR RE S O P DN S L
N O O W U RR, HANL O RP L Y EI A
O O D T T T T E O EOA T A NFS OPY OMF A W R MR N M
C I : I I T I I I PIX OE L O OSK FAB FEO N E O
T G D D I
D D D V S STA PB FAT IR I N LS O U I S
A N U U U U U E T EEC T RM OGA T TRA EEK EP G
I M T DT T ,
O
C
I I A A A A A R A RS F OE EDN COB
T
VHN V N S A A NC N R
F H N CC
NL E AI L
I A
TT IMO R L AU E C
I R R R R R R N O O N AOB TII G U R
R C O O O O I H E IN C TDIA A/T F V I
U O O O I ERT FD T EE NUC RTD REA
N
I G LT B M
E
V O F F F F F FS
T T
C TE7 O AOMH EAR T E TCD N N E LS
AE U F
V T
S
T
S
T
S
T
S
T
S
TN
SE U AD1 H TEMT
MYE STI Z SNN R O R
MR S O
L CNE YT NEOY UNL UAE I -
A E I
L
I
L I
L
I
L
I
L
I
LM D IUS R4 ETCB ERM LE
A T 9 S- T Y
C N K K K K K KE E F T1 MITE COM LSA LIME W US 1 ,R
S R
I I D I U P T
RU IEN LLME LS - OO E T
S T C C C C C CT TDA SD EMRU OT O SB O IPO Y
L OE D R S
Y U E E E E E EA X REL IE L C ’ I IM T I RT E I
H O H H H H H HT A ERC NT
IA PMET FA I
A T A CT R SR V CC T N
P R C C C C C CS T CE( MD MOHE NTF COA COEI A ET O IE N I
ICTS ESO ITN ICRM E RS C MS I M
:
:
:
:
:
:
:
:

:
:

:
:

:
:

:
:
SBA 3(1)
SBA 3(2)
SBA 4(1)
SBA 4(2)
SBA 4(3)
SBA 4(4)
SBA 4(5)
SBA 4(6)

SBA 4(7)
SBA 4(8)

B10
B11
I-25

B1

B2

B3

B4

B5

B6
B7

B8
B9
 ms. nftRn s
n p a o e
-

ea ao oAe
COMMENTS
sp
AUDITOR’S
t
i o c l e F b
L
Audit of New Advances

r gmgd‘
oLi
j
n rsa
t n ra
e
v
a mke ae
mrrttnth
e o p
R

m n o
aTwur eitha s
e
edeieaCu
n d f t r ,s ,
t abef n ry
e a ag
i d
u i d mr e

-
t n mdm e n
i e ynh oei n r
i
t sa c wpa cit d e
s nc ,o so am y l d h
nas)tuer c nro
E

l i c n d
oonL ccp
T g o
,
t
r ool at
on
ha a
cLaI nd a
l ocp l de; n
e
sdoFt i t anc
e nl(l a ,pd
t
i p s
eon ’
k
mv
re an
l
e
b
c mne n eu r i e a
nara va ) nat n t lln
e e
e ai v

Due diligence and Assessment of Requirements

r a
ame i
t s om drnf a
T

osmc e i b
veT c t nfof h
dD.leeei i n
i c rr aot i o e
m r s p f l eoe tsae
Aes n u r s c e
d pfp
sns i i r l
m
.ba r
e d u e e i nia
d s
eap e a e
h
k otc e b r p u i t r bos c

DESCRIPTION
nnl st s g -
edi ) c c
s
aad t i - / i t
s o d ae r en mesn C

52
P

bcn e r, y pr h a
c u rth e C
aesae r pn dm i
l .c
e
. a a r K
fcmn t toee
i o i
( fat f nc r
u d
o n ei d i
t s
s h
c
p
t eoh mos uc e
ad u c u s .
s i ctk
nr red,d s
i
nv da nc h d
e eod e
t s yn v
od e e a s e gpn; s ca e

9.2 AUDIT PROCEDURES

l i p r te
A

i r d s i r

9.2.1 Agricultural Loans

a m c i e r l
t Aa ,do a l at osor n n
. nrlns
c ir u
nt t u e a r s
’ d , ao hspe o
uee f fni s g k et r sast
( s.
a ,ea e a n ursd e’a t e y
e,r r

9.1 INTRODUCTION
fh r
d)Grbra a e doai
p h e sr
t a
k
n p
ns
i
l
l
ys L p e b h ye krr i e u
r -erT .p eevp f t
e r rf ms)ba g dlo
a e n o a a it n i
H

C w l
mcv aavwo
h s hoc tne rpi u u
e s c
inoWl
r a d
o a
hoe l c
n
w e
ca
c
r yn
pe
i
d e p
npo
gi
It
pln( k eo Be

i.e.
a m t H b e c ee oe r sr
a n , n r e ns cb c pa c Rm
abt aerss .
’ n e h
s’siot eee s i h c ) ) )
kdl cmre
i d d ( (

9
o (
C
A

c
gnemgoeut ( T
narrnrsds
i
d bceopreg
h t l u c
e
nas danbo

NO.
enat ln sr g )

S.
a odi u (
Li Cial Ps

i
 A
U
D
I
T
P
R
O
C
E
D
U
R
E
S
53 Para 9.2

S. DESCRIPTION AUDITOR’S
NO. COMMENTS
Reference:
FIDD.CO.FSD.BC.No.6/05.05.010/2018-19 July 4, 2018 RBI

)
Master Circular - Kisan Credit Card KCC Scheme
(
)

ii Disbursement and Documentation

T
o
c
h
e
c
k
w
h
e
t
h
e
r
(
)
d
i
ss
bp
ue
r
s
eb
ma
ek
n
ts
hg
a
si
bd
ee
ei
nn
ms
a
d
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t
o
b
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r
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s
S
B
a
c
c
o
u
n
t
/
a
a

r
n
’
u
l
e
;
(
)
mt
ar
no
du
a
t
oh
rK
yC
c
ra
oc
pc
i
nu
sn
ut
rs
a;
n
c
e
p
r
e
m
i
u
m
h
a
s
b
e
e
n
p
a
i
d
b
h

o
(
)
Nh
ee
cl
e
s
s
a
r
ye
dc
oo
cr
ud
ms
eu
n
t
a
t
i
os
n
h
a
s
b
e
e
n
d
u
l
y
c
o
m
p
l
e
t
e
d
a
n
d
c
d
o
n
r

s
c
h
a
-
dl
ea
c
l
a
r
a
t
i
oe
nn
re
f
or
me
br
od
r
ra
on
wd
e
rm
oo
f
rr
na
o
t
i
no
gf
cl
hn
a
r
g
e
i
n
n
d
r
e
v
u

c
o
s

t
g
g
e

a
d
-
hl
ya
pn
o
t
hi
ef
cr
a
t
i
ou
nr
o
fd
c
rp
oe
pr
ab
na
dn
m’
op
r
t
gl
ai
gy
e
o
f
a
g
r
i
c
u
l
t
u
r
a
l
d
,

e
q
i
e
,

k
s
o
c
-
n
o
t
i
n
g
o
f
c
h
a
r
g
e
i
n
l
a
n
d
r
e
v
e
n
u
e
r
e
c
o
r
d
s
-
s
im
mo
p
l
eg
r
eg
g
i
s
t
r
a
t
i
os
nu
o
f-
me
og
r
t
gr
aa
gr
e
(
S
R
M
)
o
f
l
a
n
d
,
i
f
r
t
a
e
d
,
w
i
t
h
b
r
i
s
t
.

Audit Hint:
1. In terms of RBI Circular FIDD CO. FSD BC No.
13/05.05.010/2018-19 dated Feb 07, 2019, no collateral
(i.e. mortgage on agricultural land) is required for agri-
cultural loans upto ` 1.60 lakh.
2. KCC facility has been extended to Animal Husbandry
farmers and Fisheries for working capital (FIDD. CO. FSD.
BC. 12/05.05,010/2018-19 dated Feb 04 2019)
3. Check few account statements for potential transfer of
disbursement to intermediary account or to close the
existing NPA KCC account if any.

9.2.2 Housing Loans

S. DESCRIPTION AUDITOR’S
NO. COMMENTS
(
)

i Purchase of Plot
T
o
c
h
e
c
k
w
h
e
t
h
e
r
(
)
‘
ds
et
c
l
a
r
a
t
i
oh
n
’uo
f
reh
ooe
mnwn
t
ht
eh
bsi
oat
r
ri
o nl
wls
e
ro
t
hw
a
tt
hti
eho
i
n
t
eem
nl
d a )
soy
t
ofb
cb
oa
nki

a -
ri
u
tn
c
aeb
or
s

ewh

d
p
tc
ie
hr
ea
h
p

n
fd
no(
aw)
cn
oy
t
ra
ik
s
et

h
i
ue
h
p

d
s

e(
l
a
d
t
h
e
b

s
e
m
s
e
v
s
,

has been obtained Para

2 b of RBI Master Circular on Housing Loans ;
54

COMMENTS
AUDITOR’S

sd
’ yl
l ee nes egye
t i t r nng ey sged
i
k e e hth i a s n t mb nde l
-

RBI Circular No. DBR.No.DIR.BC.13/08.12.001/2015-16 July

Para 2 b vii of RBI Circular No. DBR. No. DIR.

t n v t ( a yonca i i
r h odi ssi af
na oe rol l lo
i t cl id
t l i
al sd yn e itp ia
f ho fui fe a umn
bu e bi wvr c i f u uo
rip i
c d dty ootti st
e r ,td;
n u n
o b o
tssd dh
i
ne
ee
e t nn r e s se
ps ea
er
no
i rn
r se
e coaad
i e
e
gth
n
i
i
g
n
a
v
i e e
hbg r
n l nth r o d
y
lhi gn
ao
wh o b
bal
l o oct
so
t af
t pin ;
d nttn
i f o /
S g
nit cii
t
ot
u eshalsiu se
l
e t r d o c s o rl
a
d e
n
o
ons n o
i
E i
d w i
l da hr hthle t
s ncr sn l ii
u t o a t
C rn b s
i nt t s p n a , n uio u a i c
N oe uqu an
l e
nemorso
t ot
i cbt dt
ec
hu
lt
A ck pc e mwo b e r c i
t eb a r
V ca nt ooi l ocer n a u r ho nus
orr s
D art oa
t oe rrt l
a cfwe
o t
e vrt a t n i t n
A de r np f r c n o n k tns ; pfe t s uo
do om ’ouhinpi a a n o e c nbc
DESCRIPTION

ed ef g b r s a t a ae no sr-
dol

BC.13/08.12.001/2015-16 July 1, 2015.

W s n ds i
t o nts t t t o e h n tt b ac i
E a
etu nr c cd; i and i b i
t
e
hi
t t e ecp
i e a aas s fdd e
N r ee u l
rae
k h o o l ewb e f hed hch sotn
F c o t
x d t at
t c nop
a v i
t t cfi
i nsnuo
O nn eil s yh r )
sd tmana s r t n nt y age r /
i s nbi s e n s a e a o ar t oa f
T ni nu o ) dena t o h o h chi t r e i
r l p e
t
I en eb cds nnalncll
i p l , sgt c bco gstu e
D eoi ee rer ( uel n a
t f a e s a n ent h ne dlp
U
A
bt
suc
bat one
f o -
mdl aedu o hi
str e
g hin a
s hou
t i
i
s hnm .
sv i i c s r tld t utao s
a
hr
a
hrid. ’t
n c
w uupo n ethkna c ier yle a
t ooe scc t
t n nro cge d iexn neh eu bp hdt e

Construction on Plot
’s
e n epa r
aa
l r -
t I
Bnn
t
c oaec
t
i
h bsp
dmt
n
e fe
snj
uio
t
a o cel e p
‘ s o i
v o e bhk cofa eoe o kofr
r ci;
t nhf
ato h frb aRiahmetn r i
f cp lnhop )
tfiim nott
t
e o e f dftst hla
i o c f 3 t l Anl
o
y
t
i
t em a
s
i
l / s g
s
e , i
f n h yowo f neo n a b sii
t c r
e ho r yct e n (
y l n f s a h h c l ’ l s i
r
e ce h e w pr
or
e a
‘ m s t y i
h c e a k c r ctt c ue e
j a s )
i cdm m t i r nru t bs cu

Reference:
u sa

Reference:
t l k eerli t s e o (
n o m
i unp c co a nerh iihou s at s
i
tthth sl
i or
nho
i
‘ pt sao e abn at tpbwwt bs i i d cpi

1, 2015.
) ) h ) ) ) ) )
c
( ( o ( ( ( ( (

e
T
Para 9.2

NO.
)

S.
(

ii
Para 9.2

COMMENTS
AUDITOR’S

s ;
y / tes ed l
a f
l d
t y a a
n
ed
;
s c
i c hh ;
t t r
he
t n v
o.
e
s
e
y
l
o i
l rad fo rs o
mr p o re f e o i pd r l
o p e tct o p
;
I uc
ce s
’ s
’ wpa sn
i n n
pr
ao
f m
A or k k osdt a ea d e
;
d
S dn n n ran
r b ms mec e
c o
l R a a oed o
a eer or n t
e E go b b bt s rn d
h nd r r sn r p f a
C i
t l e e ecwe e us o n e

Purchase of a house to let it out on rental basis

S s
i h e e p p hul ab ba yd fi c
t l h t r sy t l n

Para 2 b 7 f and g of RBI Master Circular.

E y i p s
a s t
s -s i l r e n a
R t w mis a mn e d t e e n
U e
i e s ya eic ph e fi

Purchasing/constructing a Second House

od d oo h
D c
o
d
e ce n
o r rcbe
f g
r
otr oe
rr b n
E s r e d o t f s pa s e
DESCRIPTION

C / e yd c ’en n a e s;s s a e
O r t b- n e g i
d c bi ft h b
e s
i e e r nel
i i dty w o r s

Para 2 b iii of the Master Circular.

R g dtl e n. buiif a o e

Para 2 b ii of the Master Circular.

P p eti b oes k t er l ep s a
o
l e
r t asb r i
f e -
e ge u h
T a s dn t a e iopy ar

Purchase of Ready-built House

I e n end a l r h rc t
r o e
D v e r h e i
l e o e r b lh h s
U e e c a s he dy/ n cpg a c u
d t eid nt o ur d. o
A /
r
b nc
ei
y n r u urdt
e n i spi
a u n da ny h
e s e a pal e hl d i
s e ol h
d a eol m sg mo tli e s ) cn c
l h bp
u
t
n n ura n p tu
c i u r e eo
s u
i
u e ss eio cpl m ebb l
t ( e s
g a c o t fti ros
: r
e b r hk’ o mat r
e tppc
i i
h eor o e r
e
a d ut v ud h/ d hrp .
n h
t m h en f cn h
t a ea ct en
t t hy
o e o c ga o oe e dit
l ne r
a td a a ) e u t
e l
i
t h r
f s ab g dm h i
fu o l a
sha n cr
i ( hp hon )
a w ’ ge
t r n ru w f bci
t b
i ’ t f e ) wn ) ws
t
n C k r i
t e a s k n n i
t u ( o ( (
n p d c ‘ na r

Reference:

Reference:

Reference:
e k O os t ho k eno s a r l ) kti ) ke )
c N a ma e n t c nh ap ao l e a ( ca ( cw (
m e b va o d e at s bl p cv ep eo
u h h hu hr
c c ) ) ) ) ) c ) ) ) cc cr
o o ( ( ( ( ( o ( ( ( oc oo

a
b
c

c
D T T To Tb
) ) )

NO.
)

S.

iii

iv

vi
( ( ( (

v
55
56

COMMENTS
AUDITOR’S

a r
m s hrn
e m e/n gst nd no
kt hne ni ot
Master Direction FIDD.MSME & NFS.12/06.02.31/2017-18 July

SHGs/JLGs, this limit will be applicable per member and

-

Master Direction FIDD.CO.Plan.5/04.09.01/2020-21 dated Sep-

In the case of eligible priority sector loans to
hore as i u t oe i en i p
t
if w l i m i yib n s ;
d ga tu
c
wn o
r
0in d
a m btc ot
i
e e a;
e es
or 1M e djee t a u gl pn
gti o ) r ee v n css nb sa
na oeP p n/rha ein i i
t a no
`

oc b t mG i mu c l
i i
/ l
l
a iE
l iE d a n. n ea s
p pr t nme e pv e r
S npM uP M n n
i
oc
i t omb sa gto
E oaS s P a a t
c e i ne r c
C i eM ne( E mnf
t
a os i a e
t ahe , cch a ld
l hs
N a ho otm nao a a cy
9.2.3 MSME and Priority Sector Loans

ctt M i
r esr
A l l k,
V i
l nt e S , e p om ert
D p on rd
on m T ep
bi
t e pnn
a
t t s co
i
i
A pde f a ) h ab a dd v i
ae dug G se c er
DESCRIPTION

m r ct n l i co r r

24, 2017 Updated as on April 25, 2018

W ndey ; edo C a aep e p
E aor t nr hes ohp uc s n
N oc gl
d i
r p
eaP r
e dro n l t de
or o )
l c,n rfs ha

ad hoc
eleto ooa rc rh

not to the group as a whole

F fr cor d oi e pc d
O o swd a at o n cee f hth e
i
i i u et su
T tr on nct r ar t o
w i
ds
v
I n ena eead cdh n
dl
e
D eb k esrn d i ent ro
U
A m cm
m a bEea
S n e
r
n et
ohw i mih
g
n
on
cif
nn
ae
e e sM e . e et
guh n a C d rt
t gi i
t e,
r de
n e G I vi c nt dwr i t eb

Priority Sector Loans

dl tiv het V oa eei n / n t e
r ea
l i ng lh n cp r l etw
l r
e e a v
e wer a te K e e r e win t l a
h on r y nn h /em, m s m e ( )
t os se e nmb t r he d oi i i r h.
e ngae t
a i
syd
ee e e ws e nl n g m s00
ee t ne

tember 4, 2020
MSME Sector
h kn lb
l l
l t o h s rr d kei o eo
r ag
w cnie o i
n l e bb w i
g ,
k u cm s c or 0
,
an e cu p r o ai i hs,
wv sas ( ens b c l a5

Reference:

Reference:
k nusa ooms e
t a k r aie c nte ce oh2
c ar ah nt Ei hh c abd aad ui nc
e e r sc
h h

`
c ) ) ) c ) ) ) )
o ( ( ( o ( ( ( (

d
c
T T
Para 9.2

NO.
) )

S.
( (

ii
i
 r
e
Para 9.2

COMMENTS
AUDITOR’S
p
a
h
C
e
e
s
r r ; y t fr
reo y
l d e y u l
d
dni
eid o e
uhf e l
-

RBI Master Direction FIDD.CO.Plan.1/04.09.01/2016-17 July 7,

Education Loans to Priority Sector and Central Sector Interest

2016. Visit http://mhrd.gov.in/scholarships-education-loan-4

-
t t
c d e c nse tth
pf e e m ny. t i
t n
i oir c
lo l r i
a ul Funded Interest Term Loan (FITL) and covid-19 package a
i e K i t
ic uo
a b i l e r m t
c rg dh
neg i d c tt Emergency Credit Line (ECL), PMS vanidhi (PMSVN), p nen ; nt
oivi s. n n a o d , avl ied owi
i
tctle nld e eir r e n s e i cd
a s oe e mp p r o
i ger ain
ee
ce i
th b to p e t nh va
upa u s
r
a r a h a i
l at hg
t
dsd
e t
i e a ppp d d c i
a w b
e tnd
S er e
r t
s
r
a h ea e
s
a i
f vrro u a n
E rr e ) dr s n i aos a n och a
oid ns r

9.2.4 Multiple Banking Arrangements

R f ss i t S to e e e s r e bx ;
i lor I n s e v r ebe ae s

five crore and above

U sse a S edf s b . e l
a
D l
a ron nep C me
a
e e ’
s w we tnv
a
E uuc or ( v n e o ov er

DESCRIPTION
C i y nnt r a o r r ra me e
O don
i t
a f d ru n h i u r r rbn t
v ce co i e e t o oh o i
s
R i l e us s d vo e s n d b bs , f a
P d a
nnb die bn oc b e e e g rk dhl y
T i s ep ua Gac s n
i v c n e i n ese r
I oa
i s; a l b o i
t ha bntt
D ot oco tes mis h e u r s t b i
U t ah t s
e s ot e d
i S P i
x tr r
c uar
A hct , dd r a rn l u a s ou
kon en e c f c
y g n e h e e c q
avu s a t dou c t
s o
i m th r ct
l r n e e oset pa

Sharing of Information
0gor ; uus i l ec l
a m e t
a rego ’ta
1in m bt rib vc r f e ns
r dat o sc og i
e a r
t
i e e c
i r npeo
d m i r s
e c i t i
l ce .
r e p h t f e ouw l nea
oude d e c a c n i r owl e
`
h
t t l
c e s p ee
s
eh
r t
a
l h
t c s I t
r h
t
i
t R o f i
t o
p n ns n u r a s t
Subsidy (CSIS)

e uin o y eo li yn c e g e e e r f
o ne a ra
r
h i t
i er a
r y di r h n
i hy. E C h a
l k i
t mo s
w sesct r bp t l i
sS i
c w k t l M e w c s
t r i
l rbk
ns o sd n e bI rd o s ei i i oe n
s

Reference:
k ao nri m S k on u S k dmh e c f
c op ap a n ei
Ct uS I c wa
l
lo M o c itf a n hba
e l s ha sC S e a l p e al i t
h
c ) ) ) ) C h
c ) ) r h ) )
r u c

loans
o ( ( ( ( r o ( ( o P o ( (
o

b
T f T F -
l T
a
i
c
) e

Note:
)

NO.
p )

S.
iii
S

iv
( ( (
57
‘­

i
58

COMMENTS
AUDITOR’S
e asty n /. e d ;
y s r
g r o AC v l l e
RBI Circulars DBOD.No.BP.BC.46/08.12.001/2008-09 dated

As per para 4.2.8 Advances under consortium arrangements

September 19, 2008 and DBOD. No. BP.BC.94/08.12.001/2008-09

of RBI MC July 1, 2015 on IRACP. RBI circulars DBOD.No.BP.

BC.46/08.12.001/2008-09 dated September 19, 2008 and DBOD.
yoo e s n f
n
a l C t i
t
a CB a
h ; h u a s
n
h b u /. d e o r
t
c art a m SP. s
t
l
e r l
u y
a
r
ro CB9

No. BP.BC.94/08.12.001/2008-09 dated December 8, 2008

x. e t ;
d r n h a c r t
ed f t s l o
f .00 e d i
t e e
ge e n s e n mo2 e
r e e v h
r uh m g o t
na
i t ptao
e
i
t oN, u a r m c r
S d r ,unrir i r.0
f c s a d e o
E ro l aa d D1 od; g h e r f
a p a e y dn n c i f
C gr novn r dOr i
t s l
p o k
N eo ocfe
c c e a
vBu ta e e
i m e n
a
A
V
r c
n
i
s Aoi m a i D n
at e t
i o r
a b
D si
t s
e e
cec d e
crb
r va m r
u c h dd.
A n n f dn mn ea e em
l m c n s al
ee o e p oa r

DESCRIPTION
rras rI; rul F e o u e e r
i ee
W me pte i
l f r f i s e e l h

9.2.5 Consortium Arrangements

E eb p r B nce d t f b hor es
ee rm e eR ert hd r o e t hi
N r aa p l eia t
i e o v t
F g v
a yhos
b
ath bCd wib s
n
n
o a tk
e n me
y
r
O ah bCca l
i i sI9 gsr
c o i
t h ga
n, ,gu e a aB- c s ob ov

Collecting Share of Recovery

T n vw 0 ne c t ro
I
D an
oio ny
ord i g ad hR8 or f e
p
m
r dad f c
l i a o e f0 l
a p o s e ee te
U t t t rv er ’o
t 0 s n t gl n r
A na a a r r ef
dated December 8, 2008.
i e e 2 nin e i n ne

Appraisal and Sanction

m cr g n a t o / t - d s
er i
f cei s s ps1 od
i u t
n n o
i ah
r no
s i e r ti em0 t n i t t oe
Certificates/Reports
ufo r t St,ns r g rer r a e i o a c r r
a car
an e r ore 0 e cin m j ; n e m
l e nio . i s no sh
c i
t
h
t cyat py
en et1 2 h
t l
p a
t f nd
or
a
s h
t er s
e s
tp c .
edi e rnnr
a i r nn8 e pb o sco r e ef r r
l
b e
h
w ap
l u c tp
i
a ei0 h
w ao s
e
t
r e
e
h
h
w
bd
se
pe
xh
i
ac
t r u mco s d m gA/
i nen i or t a r et
Reference: p o

Reference:
i k goc e eo l
i M10 k ae pn l k her
u f c eC r r d c ob o eo l c tf nf
so e r Ap c c ‘ C1 e l c r a e i ao
) h ) ) ) h ) ) ) ) h ) )
c c c
(c o ( ( ( o ( ( ( ( o ( (

b
c

b
T T T
Para 9.2

NO.
) ) )

S.
( ( (

ii

ii
i
Para 9.2

COMMENTS

COMMENTS
AUDITOR’S

AUDITOR’S
r ses d I y e
e B l r s
Refer bank’s takeover policy/guidelines. Closure of account
Para 3 b of RBI circular DBOD.No.BP.BC- 104/21.04.048/2011-
-

with previous bank and opening of account with new bank

9.2.7 Casual Facilities (TOD/DAUE/Excess/Ad hoc)

o nv s R u a t
b ati r d n
r / u )
Adherence of Bank’s Policy and Exchange of Information

f tec u y n d s
o b c e n o t
r eir s
i i e a c c
e hd d l
o c e
f
v t ; b d a f
o I dk p e e D E
mB v
simultaneously would also tantamount to takeover.
e o nn s v i C d
k rR aa ’
k a e / e
a
t f r db n h c
e B r
S
rd de ee a k r S a
E on ep nh b n e
l
R f ns ot
i a e
r n
i c
U a i a tof r
e b a -
D y; a c ) n
ct
i t
b t ny p s s D U
E l n a aic u e O
DESCRIPTION

DESCRIPTION
C o e om s l e o i
t t
s
O pm no d i i T n s
nr a v l
i ( i t
R d eo ep e c t a i
P em ef er
be
m r
p a f
a g m
T vo bd f r A i
l t
I oc sbe ep n h l d i
D r, a vs e t a r s D m
pt i g

Application Form : Appraisal

i aa e ur e O i
U po hr

Sanction and Disbursement

hl b w so v n L
A an nsc
sve a O i
w
/
s d cf C
9.2.6 Takeover Accounts

dIf oe t a e y y a C

Ad hoc
rs. i
t r n e
l h g rll r r
a t a p ue r oa a D n
on mny ; ot tnd a f i r ( i
r bu ris l r ca n h. r ser o s
e ao oku e cri ea cd e ns p E s
e /
h c f no h ap ms; sre h od m U c L
t sc t t

12 May 10, 2012.

e a n
i al e ro
e eve e e i
t e A x O
a r s i e a e
h
w
hl tbc
i
u h
w
vp
op r
uc
i
t t
i
r d
i
h
w crd T D E T
ka d ri s i

Audit Hint:
nw eroet ea be un l
p o

Reference:
k ) k kt sir co k c

u
c ao r em ( c aa i ec c pe
e br Cf e t d d s e ar
h ) ) h ) ) ) h )
c c c
o ( ( o ( ( ( o (

a
T T T

NO.

NO.
) ) )

S.

S.
( ( (

ii
59

i
60

COMMENTS
AUDITOR’S

r r) p . f s / lis gts sr
ode
e
d
et u c g
. cdel
e
d o d
e r s a nn t a
Sanction by Competent Authority (within Discretionary
-

ATOR menu report in finacle , can provide information on

-
and comment if no such records maintained. Alternatively,

f p du o e nv pe e s us, i n l
Ghosh committee recommendation 2.13

w - e n
yo
l d no d
e
h ( ai
s e mh c
n
e w
o
e
c
se
a i
d
no
u uu
og
n l
lse eot d geccore p r x cti ac ce
t w a e o e t
maximum debit balances in account turnover reports

oa x nr a r s r gor c cr
dnu en o
l i os
ntn e y
l y o s nh s
dya Ari
Obtain system generated report on TOD and excess/

eee n sgh l
o d h w a b u i t ex /
wb e e f ueedo d d o o; wu l g)
e i u d l
c ei
t a e t i
v d oa i
a o aA
l
oe t
i nbra t n 5 s e l f r
S
E
l
l
a vb l
i
c
o
h n
a i e o c
g
n n 1 t
n
ez
r i l
ant t
s p F M
ae v i n r
allowed during a given period.
C at d sa pfi i u pa fte uin dS
N nhv f , e r eti r
u d a o el o j e(
esa ) z e hr e h c s u e d d Rs
A eg h hts i w na
s s w t c og sp ake t
V bins cs r
a oal er n
e o e a he nm
oo or nn
D sw r ue i pv ed l
l r t w/r i t a i u
su o
a e yoba n d sp
A d a n t do
e: s c t
DESCRIPTION

haw le
l q e r r e t m ee sd
r c n ec
W sro
d a r a pvn w o r i e e ay s

e.g.
r r r t uI wc
E e d p rc a npai o o, n o uii
l wrm hb oM oa
N ue
g oi n oaht l
lly f cc ofi cn c l
l
F qt f o ) i
t cya a s a rn no cE a n

Ad hoc
ei n
i n i
t e i t
i c nus s nf
i r ai as
O hmd do a r n r i eo e oo r t Da tio
T clin eh z c oo f
i c DD bc ba o t
I gd np i s hh t el x OO m Ch nn
D nn e
l i
a e r
a i
d pt a bu
c / e T/ oo
t t gr /cu e
U i ay t l
e l . eur
l ei s g gn nf
i i Bs ;
d em
r
A r n t u n de ar vt s n gC r n S)
a sr i / gio nt to ae e i nC ne r o s e a
era(
l e n
a l
a et ohnf hm cs w i i
war e c nI
i d l
c ; mr d r a yc e y sy xt wg f d(S r a d
mioy t o e o i

ad hoc
to riz r ei t e En oin o d; n
s tic eoa n or bher i ; i c /u l
l l l
l r es c c
e p s t i a l y rne d wne ea

ad hoc
nteo r f c iol a a
l g a h sw or l Dco o oan oor ps;

Lending Powers)
i s r a ng; sl o t m h d i t tj t i
a u c
s p si e u h e nro t o c p Oc o o n o f s i l
l t y //st
gci s ddi n t
a g h ofoc u as Ta n ne n die a a c l s n
aed ’ rlu d e d w i
t aec f ’ rit t srudu s )u
t dn k dr a s hk n Ao

Audit Hint:
i m oc n c n m t r oili Dt e
mrin cn a er k no oen cn cc a Onsre cFc

u
a uo n ua xRc

excesses/
ei t c ai rt ea
ip
l ab r (s df e s tf o sb r fm Ti a e( a
) ) ) h ) ) ) ) )
c
( ( ( o ( ( ( ( (

e
T
Para 9.2

NO.
)

S.
(

ii
Para 9.2

COMMENTS

COMMENTS
AUDITOR’S

AUDITOR’S
fd yee s e s
’ dg os; l
a
o e t vr r k ein t d

eligibility of loan, repayment schedule and other terms and

Refer bank’s credit policy/master circular of the scheme for
Refer bank’s credit policy for allowing such casual facilities

Property Charged : Adherence of RBI guidelines/Bank’s Policy

ert i
r au a vn p r v
s uhd s n oo uo o
9.2.8 Loan Against Properties (Mortgage Loans)
i o c e t a ri sec r
c
r p eed r b pt e p
e e s c o r pc t r p
xdr ,owro p e an a n a
en d e
r p ssa co
p i m

As per para 2 b 7 f and g of RBI Master Circular.

na oll k ’
k f
i n
i i
r ah d n n/ t e o
yd e s c n a aM r k r
f
t e pe u a b e a
S i
r d is
t d bB ct y
E or ,l
t i d e e y en t
r
R ho n in
c r h by ce e
t c ua a u t eb ne p
U u e of s t
p o nd ab o
D ar mle s t oe r e r
a bv p
E gn aan c e dv
DESCRIPTION

DESCRIPTION
C nee u l no ma f
O i sct e
r b er uh o
n b a a cn
Modifications in computer systems

R oe
e.g.
cre a t ep es.
P i (hr s p bp nio gd
T t
c v n e sa et
- ar
I na mco
u c o c
c a n a
e lo )
D ah; es i
t hn or a c
and for discretionary powers.
U s s t r d a a yee nc ue (
A yer s s r o n c s t /e dr
e
i y of
f a i i r b s g i
bw t s f e t son
,o i
r )dd
e ; i
d . d p r a e
y o nt
i e i ods e os otg r )
nph
sar
f
i e
t g
r ra pr fed
l (
ayt nre n mr
o a ph eo
r o )
fr
i u r
e otvm e hc r
e h fd m h
, a a i s ce c o hf se (
)
s n r h
t t e
r yu ur h
t nn; y co e
t r
noe
oti e a
cte l
u c sn e y
t oat
i i r
a e a
cra (
i egh h i
f n do fo h r ;
y t ror eat i
t
a r i w i i nd o w e c a e s f
i e
d d pi uluth dd t u

Audit Hint
sl

Audit Hint
l c h de ee

conditions.
Reference:
o s k on ere g e k ol l l r l
i i
d o c ma ba oh c ro a au t
i han e a
v t e l e pp vva t t cv
) h ) ) h ) ) ) )
c c
( o ( ( o ( ( ( (

d
T T
)

NO.

NO.
)

S.

S.
iii
( (
61

i
62

COMMENTS

COMMENTS
AUDITOR’S

AUDITOR’S

rni t’s yn en ro :
s e s
p); e t e e
visn k o ce d
-

-
aI d o r i e .
. hth r h n
A oe pa e n o s t t i
hS
t gd e pe vb r
e e u o
c o l
e
i nr d b ok ne i ha e p d
wR ra i v l / y i

Disbursement : Adherence of Bank’s Policy/Guidelines

i
d ofb y pt aa p we r h u
E co p kr n g
dC ne )
. nen mh u cu o s
e/ ar e
t c oe r, s ect ’
k s
r
e C hn a t otc ha n n ’
k
S t o fe dre sb
e f e o
t Cf e a e n
E s o ege e r k b s
Bank’s Charge on Property and its Registration

C i
g R eb uv e y y u a u a
/ nb da pic l n t b

Refer bank’s policy/master circular on scheme.

N er msi l t
c a e h
t a
A r a ia nm yh go e r i l
c r
/ r t o r ) np m a w e
V ost dhi u oty i r
i k p
D t n,tn t i n s d e d ) n
A dei
g aeni
g e o u
t c
i
i
a ’
k e l
c e
i C a m
DESCRIPTION

DESCRIPTION
W er
i ea
t mol a r t
b n d i
h f
i R b r
f g( t t r ( o
E i
t
-
b a
drt f
,
s c
e oab
a
m
e
v e e e
l f
N o u ,oe rs ll
l srd v t b r
F nS y t d a e a e n n n y a a e
f
O n ami s ed fx, hpa e i l
u
c
i t
i s
drg e n o a c ; e e d f
i t u n
e oeda d e t r s
e.g.

T e( trt uin y b a s c r o a
I f r e l i h r
i.e.
D by ,ket l ;
s n e sg s e m t o e p t t
U si e i l et ,ar u v n v ce e i
a t gngt a ma s o a n e nus r w O
A
hor aaafi
g c yw mmu l h e m n
i o n e T
h gbt
t
o
tfi
f ax, rdc
e s e u f il
t a o c R
et r e r i pa t i t b c o a c i
t n .
r gu ohoo s o r nt n s r o s r c dd
e r a mtmp
rt e nae e a e d e t n e
a
r ee

9.2.9 Vehicle Loans

h a o d oe h oem m h h i s
i o p u nn
t he ft e eze f s. t i
tcl t g p g i
t s s gai
l e

Documentation
e cat o dri sus e c d t e n o eca n n i
h sr
’ i sdbl
l e a eo t
p od
h r
h nhie
r
s
r n
ee.
r h i
w c r i i s
ko
t
b
w k i e t th i w aee u w

Audit Hint:
nop a duii e o s vh b mal o ne
k t tt c c k s ee k l
l ar

u
ar e fqo fu l d

e.g.
c bp do e r e c lofa i
d s c o l
b
e e a r ( e a r d e f a
h ) ) ) h ) ) ud h ) )
c c be c
o ( ( ( o ( ( sz
i o ( (

b
T T d i
r T
Para 9.2

NO.

NO.
) ) )

S.

S.
( ( (

ii

ii
i
Para 9.2

COMMENTS

COMMENTS
AUDITOR’S

AUDITOR’S

;
s eas /’s d d e nty
r Ek e e h i
ther vehicle inspection report by branch has been compiled in

report in finacle can help verify such accounts in which pre-

Refer bank’s policy/documentation guidelines. Check whe-

Refer bank’s policy/guidelines for execution of security docu-

ments. Review system generated lien marking reports to verify
the lien marked. Preferential interest reports such as PREFINT
k a h r z t sui
r
n
sI) Rn u i
r a
a t Nba s o m c
b i
s O n h o le
l
r oR do e t r e s
e p( nt n u f wn
h est ag e a d
t
o de sn e n e si
a .
l
r r i b e n d a
f ee od s e i )e w
o ht nr
i a b a s
( r
S s t n o h s t t e e
R fi mc s a b p t
n n
E i f fac e h o i
e e
R
U
D
T
,o
d o n
i ,
y n ce r
r
ete n l en
9.2.10 Loan against Term - Deposits

D t na ee e n e r e o
mv d e f
Adherence of Bank’s Policy/Guidelines
E s i r i a b tbed
DESCRIPTION

DESCRIPTION

C n
i a
t ai u f
i i
s d
d ng n e

ferential interest rate has been given.

O a b g , e o a z
R g on een k n v pe; i
P a a ; he nd e a eav ) r
d syl
i y t an v
i h dh M a
i
T
I e
t nrt g nb
i ba g
ei
.
y s mdS R d
D n opa n
i e r; t R e
U a i d sv
t e t cr D rn ( r
A r t
a d r i a pn no e ad a
g i o s h ne eh T t s
c rc os r e
bank’s prescribed format.

i pr i
g m e t f nmn R
n nh c eo r f u o oe i
e
e uta dt a e
s e a dtt a D
nfd i r r t e
esn T
r b eoe ts
s
mu pn r g
r kyi f
e
h
s
a
r eg
fmr np
i
o eb
t s
ee
t
a t e
h a ;
s rsa
a
o
t h o a ae a i r e t hr rm
e s
ah i p co e

Documentation
e n rnc gd r d tm e s t mt r t
h a e a y ; pe s h i i
s spu e a
w o t en sRc or e o w d o i t
s d
ro r
Audit Hint:

Audit Hint:
l t he nNl i c i
k o
e
l t aCo pf e
t y k ep
ue nmg e
u
c nbe oF pe n c eoe
i
e n ai l p ab i b e dd l cr d
h ) ) ) ) ) h ) ) )
c c
o ( ( ( ( ( o ( ( (

a
b

c
T T
NO.
)

No.
)

S.

S.
( (

ii
63

i
 A
U
D
I
T
O
F
N
E
W
A
D
V
A
N
C
E
S
Para 9.2 64

9.2.11 Loan against Gold/Silver Ornaments

S. DESCRIPTION AUDITOR’S
No. COMMENTS
(
)

i Sanction, Disbursement and Documentation:

Adherence of RBI guidelines/Bank’s Policy
T
o
c
h
e
c
k
w
h
e
t
h
e
r
(
)
am
pa
pi
rn
ot
pa
r
i
a
t
ed
r
e
c
o
r
d
f
o
r
s
u
c
h
f
a
c
i
l
i
t
i
e
s
e
x
t
e
n
d
e
d
h
a
v
e
b
e
e
n
a
i
n
e
;
(
)
l
o
a
n
s
a
r
e
s
a
n
c
t
i
o
n
e
d
f
o
r
‘

t
e
n
o
r
o
n
l
y
;
b twelve months’
(
)
l
oRt
aBh
nI
t
oB
va
a
l
ugf
eul
(
Ld
Te
Vl
)ea
r
a
t
i
on
o
fh
7a
5v
%b
he
a
sn
bm
ea
ei
nn
ct
oa
mn
pd
u
eh
t
dr
pu
e
rh
c
/t
n
ko
io
i
n
sn
ad
d

e
e

i
e
t
o
g
e
e
n
o
r

a
n
;
(
)
o
w
n
e
r
s
h
i
p
a
n
d
a
p
p
r
a
i
s
e
r
c
e
r
t
i
f
i
c
a
t
e
s
a
r
e
h
e
l
d
o
n
r
e
c
o
r
d
s
.
d
Reference:
(
)

i RBI Circular No. DBOD.BP.BC.No.86/21.01.023/2013-14

on “Lending against Gold Jewellery” dated January 20,
2014
(
)

ii RBI Circular No. DBOD.No.BP.79/21.04.048/2013-14 on

“Non-Agriculture Loans against Gold Ornaments and
Jewellery” dated December 30, 2013.
Audit Hint:
Per RBI guidelines, securities are “valued at the average of
the closing price of 22 carat gold for the preceding 30 days
as quoted by the India Bullion and Jewellers Association Ltd”.
Refer bank’s guidelines for maintenance of records and secu-
rity of gold/ornaments.
(
)

ii Security and Documents

T
o
c
h
e
c
k
w
h
e
t
h
e
r
(
)
gg
o
l
di
/
s
i
l
vn
e
rs
oa
rn
nd
a
m
e
n
t
s
h
a
v
e
b
e
e
n
k
e
p
t
s
e
c
u
r
e
l
y
p
e
r
b
a
n
k
’
s

a
u
d
e
l
i
e
;
(
)
s
er
ce
ui
r
i
t
i
e
sm
aa
ni
dn
dt
oa
cn
ue
md
e(
n
t
sM
h)
aa
vn
e
bd
ee
en
nt
r
ei
ce
o
ra
dr
ee
dd
nu
i
s
ev
ce
ur
r
i
t
i
e
sd

b
g
s
t
e
r

S
R

r
s

l
y

i
f
i
e
.

Audit Hint:
Refer bank’s guidelines for documentation and custody of
gold etc.
Practical Workbook for
Bank Branch
Auditors
Author : Ishwar Chandra
Edition : 5th Edition
ISBN No : 9789390831067
Date of Publication : March 2021
Weight (Kgs) : 0.41
No. of papers : 392 Rs. 995 | USD 45

Description
One-stop-reference book (with Hints & Check-Lists) for branch auditors with complete &
current contents. This book is written with the objective of reducing the audit risk, besides
documenting the audit work simultaneously.
This book is useful for auditors in accomplishing their branch audit in a more purposeful
manner & bringing more comfort to the Statutory Central Auditors, Boards and Management.
The Present Publication is the 5th Edition & amended up to 1st March 2021, authored by CA
Ishwar Chandra, with the following noteworthy features:
 New Chapters on Audit of Special Mention Accounts & Audit of Provisioning
 Revised chapters on CBS Environment: Useful System Generated Reports & CBS reports
which are helpful for the auditors (which are also available in Finacle 10, BaNCS and
Flexcube), have been added
 Changes made by RBI’s extant guidelines & ICAI Standards on Auditing have been added
in the following chapters:
n Audit of Income Recognition & Asset Classification (IRAC)
n Audit of Restructurings
n Performing General Ledger & Profit and Loss Audit
 RBI’s LFAR Review has been added in the chapter of LFAR Procedures, which seeks
information from banks’ head office and from the branches, various formats suggested
to collect the information have been modified based upon such new audit requirements
 Procedures for Accepting/ Planning/ Performing and Reporting an Audit, along-with
audit procedures for Branch Audit/ LFAR/ Tax Audit and Special Purpose Certifications

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