munna er

INDEXSr. No. Partilar Page No

1 Branch Profile

2 Business Risk

3 Summary Score Sheet (Control Risk)

4 Control Risk

Observations - Credit Functions

Observations - Non Credit Functions

Observations - Computer Functions

Observations - Compliance

Observations - Branch Management Genral

Observations - Branch Management Secrity

5 FSI and ZTL Items Report

6 Overall Risk

7 Certificate of Discussion

8 Weekly

9 Potential Risk & Suggestions

10 SOWT Analysis

11 Certificates

12 Report on Customer master

13 FORM - 1

14 Hindi Report15 Certificate of correctness operational risk loss data

16 Legal compliance audit certificate

17 BM comment on high/very high risk

18 Major exception and deviation

19 List of securities checked

20 List of irregularities removed during the inspection

21 Annexture of Control Risk Observations

a) Credit Risk

b) Non Credit Risk

c) Computer Funtions

e) Compliance

f) Branch Management Genral

g) Branch Management Secrity

22 Financial Inclusion Annexure, ATM Certificate

23 Copy of Office Order of Duty Sheet, HRMS report

1

RBIA FORMAT NON SPECIALISED BRANCH APRIL 2015

BRANCH PROFILE1 Branch Detail

Mannavanur 2847 Kodaikanal 624103Phone No 7708066791

Last Audit : As on 5.4.14 Risk Rating Low

Present Audit : As on 3.10.2015Circle Trichy T N

MediumRural

Date of opening of branch 21.09.1990Off Clerical Sub-staff Tot

Sanctioned 2 2 1 5Actual 2 1 2 5

NIL

If the Branch has ATM,SWIFT,RTGS,SFMS etc, RTGS/NEFT

NO

Name of Previous Incumbent C.Sankar

Name of Present Incumbent C Subramanian

Name of Concurrent Auditor/ Internal Auditor A Jitendra babu 9951514663(Telephone & mob. nos. and Since when)Date of last visit of Senior Officer Venkataramani Name & Designation Sr Manager, B/o Dindigul, TN

Tata ATM is under installation

2 Deposit & Advances

As on previous IR As on present IR5.4.14 3.10.2015

No of A/cs Amount No of A/cs Amount

1. Savings Fund Deposit 3379 202 5042 276

2. Current deposit 1850 24 105 15

3. Inoperartive ad other Demand Deposit 1925 18

Low cost Deposit (Total 1+2+3 ) 5229 226 7072 309 4. Term Deposit 211 71 268 100

5. Total Deposit 5440 297 7340 409 6. Total Advances : 2220 1024 2015 926

Fund Based(FB) 2220 1024 2015 926

Non-Fund Based(NFB)

3M S M E 1644 715

Agriculture (including K C C) 1570 678 5 4

C C (excluding K C C ) 34 9 65 11

Housing loan to public

Vehicle Loan {(V/L) Public}

Other retail loans 26 24 22 25

Any other loan (Specify) -- D/L, Pension Loan,Staff etc. 14 5 1312 535

TOTAL 3288 1429 1404 575

Branch Name, Address, Distinctive No.

Category (Small / Medium / Large / VLB / ELB)Area (Rural / Semi-urban / Urban / Metro)

Total Staff Strength (including incumbent)

Details of Extension Counters (Names, location & telephone Nos.)

Whether the branch has won any special award / achievement / trophy. (specify with date)

Change in Business Environment since last Annual Inspection viz. opening of another bank branch etc.

Fresh sanctions / enhancement under BM Power during the period under review:

2


4H/Y 30.09.14 H/Y H/Y

Bud Achi Bud Achi Bud Achi

Deposit 441 329 362 362 473 407

Low Cost Deposit (SF + CA) 312 238 282 257 343 368

Credit 1174 933 962 835 1110 925

- Fund Base 1174 933 962 835 1110 925

- Non Fund Base

Profit 21 17.2 48 31.3 20 13.1

Priority Sector advances 1015 910 1010 951 1080 915

Retail lending 960 879 904 814 976 782

Non-interest income

NPA reduction 34.03 42.4 6.1

Export turnover

Import turnover

5Yr 31.03.14 Yr Qrt Qrt

No Amt No Amt No Amt No Amt

A. Rating of advances

a) Rated advances (excluding NPAs and those overdue for Rating)

1 A1

2 A2

3 A3 & A4

4 B1

5 B2 & B3

Sub total (1 to 5)

6 C1

7 C2 & C3

Total of (a) 1 to 7 b) Ratings overdue for renewal

c) Adv eligible for rating but not rated

Total of A (a+b+c) B. Other Advances

1 2 2 5 1 1 2 6

5 1 2 5 1 1 2 6

Housing loan to Public 7 3 7 2 7 3 7 3

Agriculture loans 1832 817 1688 641 1775 692 1602 616

Govt Sponsored Schemes

All remaining advances 192 121 127 182 112 151 145 162

Total of B 2037 945 1826 835 1896 848 1758 793

C. Total NPAs 189 86 240 126 196 85 259 132

Grand Total (A + B + C) 2226 1030 2066 961 2092 933 2017 925

Total Deposit 5428 305 6967 362 6030 329 7340 407

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.

Business growth and budget achievement

31.03.2015

30.09.2015

Composition of Credit Portfolio

31.03.2015

30.09.2014

30.09.2015

Advances against/ NSC/ KVP/LIC Policy and Pension loans (including such loans to staff)

Advance to staff members (H/L,V/L,clean OD etc.)

3


6 Migration analysis of advances from previous review period to current review period

RatingAdvances which have been rated more than once

Present rating vis-à-vis previous rating

(1) Same (2) Upward 3) Downward (4) Overdue (5)

No. Amt. No. Amt. No. Amt. No. Amt. No. Amt.

A1

A2

A3&A4

B1

B2&B3

C1

C2&C3

Total 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)

Yr 31.03.14 Yr Qrt Qrt

No Amt No Amt No Amt No Amt

7

8 Irregular Advances 263 86.45 250 65.1 230 63.15 240 40.15

9 Fresh Slippage to NPA Accounts 63 29.03 45 41 6 1 19 6

10 Restructured Accounts (O /S)

11

12 Quick Mortality Cases 1 0.84 0 0 0 0 0 0

13 Total NPA (Gross) 189 85.6 240 126 194 85 259 13214 Out of total NPA: a. Sub. Std 94 49.88 226 116 187 81 155 101

b. Doubtful 27 14.05 14 10 6 3 30 10

c. Loss 67 21.76 0 0 2 1 74 21

15 26 17.65 15 4 20 3.5 25 7

16 Credit Concentration

16.1

16.2 1 5.08 1 4.33 1 4.33 1 4.03

17 Advances to Sensitive Sector 7 2.7 7 2.7 7 2.7 7 2.7

18 Non-Fund based advances

18.1 (a) LC/LG/DPG (outstanding)

18.2

18.3 (c) Due Date Default (outstanding)

19 7 2.49 0 0 0 0 0 0

207 2.49 0 0 0 0 0 0

21

22

232 31 5 50 5 53 3 50

Adv which have been rated first time

31.03.2015

30.09.2014

30.09.2015

A/cs taken over from other Banks /FIs

Total Slippage to restructure a/cs during the review period

Recovery in NPA Accounts during the review period

Total advances in largest segment ( SMEAdvance to largest borrower or group -

(b) Invoked / devolved LC/LG (during the review period )

Frauds/shortage of cash detected, if any

Recovery Made in cases of Frauds / shortage of cash

Cases lodged against bank in courts / Banking Ombudsman/ consumer forums during the review period.Penalties imposed by various Courts/ Income Tax/RBI/Banking Ombudsman Redressal forums etc. during the review period.Depositors having more than 1 % share of total deposits (Public)

B122

Author:

B132

ACS

4


24 Earning Profile Yr 31.03.14 Yr Qrt Qrt

1. Interest Income 120.76 108.41 57.94 49.76

3. Non-interest income 6.17 5.62 3.03 4.84

A Total Income (1+2+3) 126.93 114.03 60.97 54.60

4. Interest Expenditure 14.49 15.27 7.19 9.09

5. Non-interest Expenditure 72.40 67.44 36.16 31.16

6. H O Intt./TPM Paid

B Total Expenditure (4+5+6) 86.89 82.71 43.35 40.25

C Profit (A – B) 40.04 31.32 17.62 14.35

25 Avg cost of the dep of the Br 4.76 5.14 5.99 5.91

26 Average cost of dep of Circle 6.07 5.94 6.08 6.35

27 Average return on adv of the Br 12.31 11.39 10.31 7.99

28 Average return on adv of Circle 11.24 10.99 10.48 8.92

29 Avag Business per employee 267.20 239.40 252.40 266.40

30 Average Profit per employee 8.00 6.22 3.52 2.87

31

32

33 Branch Administration COMMENTS

33.1 Level of implementation of Business Continuity Plan Satisfactory

33.2 Controllable expenses are under control

33.3

33.4

33.5 Instances of window dressing, if any 0

33.6 Updation of records done with due care.

INCUMBENT INCHARGE AUDITOR

31.03.2015

30.09.2014

30.09.2015

2. H.O. interest received (including TPM incentives & subsidies)

Revenue Leakage (Annual) detectedRevenue Leakage recovered /detected

Efforts of the branch in reducing controllable expenses (Substantiate with figures of relevant period i.e. Year/HY/Qrt.) and getting confirmation of unauthorized expenditure, if any.

Comments on safeguards and precautions taken in respect of various outsourced services.

Adequate safeguards being taken in respect of various services outsourced

Comments on status of other facilities like ATM, SWIFT, Depository, CMS, Internet Banking, RTGS, NEFT etc. and their effective utilization and adequate safeguards and precautions taken by the branch against their fraudulent use.

RTGS/NEFT & SWIFT are being effectively utilised with desired safeguards

Maintenance of prescribed registers for recording operational Loss Data.

REGULAR INTERNAL AUDIT BO: 5

RBIA FORMAT NON SPECIALISED BRANCH APRIL 2015 AUDITOR NAME

1 CREDIT RISK

1.1 QUALITY OF CREDIT PORTFOLIO ( EXCLUDING NPA)

Risk Score Alloted Risk Category Alloted : LOW

(All the figures should be in Lacs and should not contain any decimals)

Rating Category No. Amount Risk Factor

(a) (b) (c ) (d) e=c X d/100

A) Risk Rated Advances

(a) Rated advances

A1 0 0 0.2 0

A2 0 0 0.3 0

A3 & A4 0 0 0.5 0

B1 0 0 1.0 0

B2 & B3 0 0 1.5 0

C1 0 0 1.5 0

C2 & C3 0 0 1.5 0

SUB-TOTAL of (a) 0 0 0

(b) Adancesv eligible for rating but not rated 0 0 1.5 0

TOTAL (a) + (b) 0 0 0

(B) All other advances

2 6 0.00 0.00

Adva to staff (Housing, Vehicle, Clean OD etc) 2 6 0.20 0.01

Housing loans to public 7 3 0.50 0.02

Agricultural loans 1602 616 0.75 4.62

Govt Sponsored schemes 0 0 1.10 0.00

All remaining loans and adv 145 162 1.00 1.62

TOTAL 1758 793 6.27

*GRAND TOTAL (A) + (B) 1758 793 6.27

0.79

RISK SCALE (% of probable default to total advances) RISK SCORE RISK CATEGORY

< 1.10% 0-30 marks Low

1.10% to 1.80% 31 –60 marks Medium

>1.80% 61-100 marks High

BUSINESS RISK

Amount (as per Risk Factor)

Against FD/NSC/KVP/LIC Policy etc. and Pension Loans (including such loans to staff)

% of probable default to total advances (% of total of col (e) to total of col (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



No. Parameter Risk ScaleAllotted

RS RC1.2 Extent of Migration In Existing Rated A/c

0 LOWTotal Balance of Rated A/c 0 Stable/Upward/ downward upto 3% 0-12 L

Amt of Downward movemen 0 Downward Movement > 3% to 10% 13-24 M

Downward Movement % NA Downward Move ment >10% 25-40 H

1.3 Percentage Of Gross NPAs to Total Advances

7 LOW

Total Advances 925.05 Lacs 0% to 1% 0-22 L

NPA 132 Lacs >1% to 2% 23-45 M

%age of NPA 14.27 % > 2% 46-75 H

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 Total Advances

0 LOWTotal Advances 925 Lacs 0% 0 - 13 L

Lacs >0.00% to 1.00% 14 - 27 M

%age of Slippage 0 % > 1% 28 - 45 H

1.5 Irregular a/cs as %age of total advances (net of NPA)

45 HIGHTotal Advances 793.05 Lacs >0% to 2 % 0 - 13 L

Irregular Amt 40.15 Lacs >2% to 4 % 14 - 27 M

%age 5.06 % >4% 28 - 45 H

1.6

0 LOW

Restrcutured A/cs O/S 0 Lacs >0% to 10 % 0 - 7 L

Total Slippage during the year 0 Lacs>10% to 20 % 8 - 15 M

%age of Slippage 0 % > 20% 16 -25 H

1.7 Quick Mortality Cases (Amount Wise) Rs. 0 to 5 lacs 0 - 9 L

0 LOWQuick Mortality during the year 0 Lacs > 5 to 25 lacs 10 - 18 M

> Rs. 25 lacs 19 - 30 H

1.8Credit Concentration (Amount Wise)

a. Segment/Industry Wise Concentration

20 MEDIUM

Total Advances 925.05 Lacs >10% to 40% 0 - 12 L

Adv in largest segment 0 Lacs 40% to 75% 13 - 24 M

% to Tot Adv 0 % > 75% 25 - 40 H

Risk Score

Risk Category

Notes: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.

Slippage in NPA in review pereiod

Trend of Slippage in Restrcutured/Rescheduled a/c during 1st Year (Amount Wise %age)

The segments are e.g. Housing, Vehicle, Trading, Industrial, Agricultural Loan etc. (This parameter is to be made N.A. in case of Specialised Branches).



b.

1 LOW

Total Advances 925.05 Lacs >10% to 15% 0 - 13 L

Adv in largest Borrower 4.03 Lacs 15% to 20% 14 - 27 M

% to Tot Adv 0.44 % > 20% 28 - 45 H

Largest Borrowr is Sh _____________________

1.9 Advances to Sensitive Sectors (Amount Wise)

3 LOWTotal Advances 925.05 Lacs 0 to 12 % 0 - 12 L

Adv to Sensitive Sectors 2.7 Lacs >12% to 20% 13 - 24 M

% to Tot Adv 0.29 % > 20% 25 - 40 H

1.10 Invoked / Devolved BG/LC (Amount wise)

0 LOWTotal outstanding BG/LC 0 Lacs 0 to 2 % 0 - 10 L

Invoked / Devolved BG/LC 0 Lacs >2 % to 5% 11 - 21 M

% age NA % > 5% 22 - 35 H

TOTAL CREDIT RISK SCORE ( I.E. SUM OF RS OF 1.1 TO 1.9) 76

2 OPERATIONAL RISK2.1 Depositors with more than 1% share of Total Dep. > 5% to 15% 0 - 6 L

0 LOWTotal Deposit 407 Lacs >15% to 30% 7 - 12 M

Dep. with more than 1% 50.3 Lacs > 30% 13 - 20 H

%age of Total Dep 12.36 %

2.2 Non KYC compliant Dep A/cs Upto 1 % 0 - 9 L

9 LOWTotal Deposit A/cs 1000 >1% to 2% 10 - 18 M

Non KYC compliant Dep A/c 10 > 2 % 19 - 30 H

% of such A/cs 1 %

2.3 Upto 1% 0 - 6 L

0 LOWTotal Deposit Lacs > 1% to 3% 7 - 12 M

Window dressing Lacs >3% 13 - 20 H

0 %

2.4 Alternate Delivery Channels: Upto 30% L x x

>30 to 60% M x x

Channel No >60 H x x

Internet Banking 15 25 25 x x 5 LOW

Mobile/SMS Banking 2 5 5 x x 0 LOW

Point of Sale (POS) Terminal 5 5 x x LOW

ATM 10 10 x x LOW

Credit/Debit Card 650 5 5 x x 1 LOW

NEFT/RTGS 60 10 10 x x 2 LOW

Total Applicable Score 60 60 x x 8 LOW

Borrower Wise Concentration [Adv to largest borrower (or to a borrower group)

The borrower groups consist of sister concerns, associate concerns, subsidiaries, concerns of family members etc

Instances of window dressing (Amt wise as % of dep)

%age

Maximum Marks

Applica-ble Marks



2. If any of the facilities is not applicable, NA should be marked against that facility.

No. Parameter Risk ScaleAllotted

RS RC2.5 Record Maintenance of Loss Data Good 0 - 6 L

5 LOW

Satisfactory 7 - 12 M

Unsatisfactory 13 - 20 H

2.6 0 to 2 0 - 6 L

0 LOW3 to 5 7 - 12 M

No of Cases lodged 0 > 5 13 -20 H

2.7 Nil to Rs 0.50 Lacs 0 - 6 L

0 LOW> 0.50 Lac to 5 lacs 7 - 12 M

Penalties imposed 0 Lacs > Rs. 5 lacs 13 - 20 H

2.8 No Fraud - Upto 3 lac 0 - 6 L

0 LOW> 3 lacs to 20 lacs 7 - 12 M

Amount of fraud detected 0 Lacs > Rs. 20 lacs 13 - 20 H

2.9Recovery Made in Frauds Detected during review period.

0 LOWAmount of fraud detected Lacs Full Amt to > 60% 0 - 6 L

Amount recovered Lacs Recovery 60% to 40% 7 - 12 M

Recovery Made NA % Recovery 40% & Below 13 - 20 H

2.10 Upto 30% L x x

>30 to 60% M x x

>60% H x x

8 8 x x 4 MEDIUM

2. Courier/ dak services 7 7 x x 0 LOW

3. Security and watch & ward 5 5 x x 3 MEDIUM

4. Maintenance of SFF and Lockers 5 5 x x 2 MEDIUM

5 5 x x 0 LOW

6. RBIA/Recovery Agencies 10 10 x x 0 LOW

7.Other services, sweeper, canteen etc. 10 10 x x 1 LOW

Total Applicable Score 50 50 x x 10 LOW

TOTAL OPERATIONAL RISK SCORE (I.E. SUM OF RS 2.1 TO 2.10) 32

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.

Risk Score

Risk Category

While allocating Risk Score the auditor should see that all prescribed registers as per RMD Circulars are properly maintained & checked.

Cases lodged against Bank in Courts/Banking Ombudsman/Consumer Forums during review period

Penalties imposed in Cases lodged in Courts/ Income Tax Officer/ Ombudsman/ Consumer Forums/RBI during review period

Frauds Detected including cash shortage/ pocketing of cash during review period.

Outsourcing / Other Service Providers (refer check list)

Maximum Marks

Applica-ble Marks

1. Maintenance of computer Hardware/ Software/ATM

5. Reconciliation of ATM (outsourced) Transactions.

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.

B116

Author:



3 EARNING RISK

3.1 Deposit (%age achievement of incremental budgets)

1 LOW

%age achievement for H/Y 31.03.2015 100.00 > 100% to 40% 0 - 5 L

%age achievement for H/Y 30.09.2015 40.54 <40% to 10% 6 - 9 M

Avg %age achievement for 2 H/Y 70.27 <10% to Negitive 10 - 15 H

31.03.2015: (362 - 329)*100/(362 - 329) = 33*100/33 = 100.00

30.09.2015: (407 - 362)*100/(473 - 362) = 45*100/111 = 40.543.2

7MEDIUM

%age of Low Cost for 31.03.2015 70.99 > 2% to 1% 0 - 5 L

%age of Low Cost for 30.09.2015 90.42 1% to (-)2% 6 - 9 M

% Increase In Low Cost Dep >60% > -2% 10 - 15 H

31.03.2015: (257 * 100 )/362 = 70.99

30.09.2015: (368 * 100 )/407 = 90.42

3.3 Credit (%age achievement of incremental budgets

1 LOW

%age achievement for H/Y 31.03.2015 -337.93 > 100% to 40% 0 - 5 L

%age achievement for H/Y 30.09.2015 32.73 <40% & to 10% 6 - 9 M

Avg %age achievement for 2 H/Y -152.60 <10% to Negitive 10 - 15 H

31.03.2015: (835 - 933)*100/(962 - 933) = -98*100/29 = -337.93

30.09.2015: (925 - 835)*100/(1110 - 835) = 90*100/275 = 32.733.4 Priority Sector advances (%age achievement )

1 LOW


%age achievement for H/Y 30.09.2015 -27.91 <40% & to 10% 6 - 9 M

Avg %age achievement for 2 H/Y 6.55 <10% to Negitive 10 - 15 H

31.03.2015: (951 - 910)*100/(1010 - 910) = 41*100/100 = 41.00

30.09.2015: (915 - 951)*100/(1080 - 951) = -36*100/129 = -27.91

3.5Achievement of Profit Budget (%age achiv of budget)

0 LOW



Avg %age achievement for 2 H/Y 65.36 <50% & Loss 10 - 15 H

31.03.2015: (31.30 * 100 ) / 48.00 = 65.21

30.09.2015: (13.10 * 100 ) / 20.00 = 65.503.6 Achi of Bud of Disbursement under Retail Lending

3 LOW



Avg %age achievement for 2 H/Y 85.08 < 50% 7- 10 H

31.03.2015: (814 - 879)*100/(904 - 879) = -65*100/25 = 90.04

30.09.2015: (782 - 814)*100/(976 - 814) = -32*100/162 = 80.12

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.

Increase In Low Cost Dept (SF+CA) as %age to T.Dep

Even though there is decline, if Low cost deposits of a Br remain 60% or above, branch will be rated as Low Risk.

In case PS budget is not given then aggregate of sub-sector bud. such as Agri,KCC etc. may be taken for assessment.



3.7 Achievement of NPA reduction Budget

0 LOW

%age achievement for H/Y 31.03.2015 NA > 100% to 80% 0 - 5 L

%age achievement for H/Y 30.09.2015 NA <80% to 50% 6 - 9 M

Avg %age achievement for 2 H/Y NA < 50% to 0% 10 - 15 H

31.03.2015NA

30.09.2015NA3.8 Average Cost of Deposits

4 MEDIUMAvg cost of deposit of the Circle 5.94 >0.5% to >0.25% 0 - 3 L

Avg cost of deposit of the branch 5.14 <0.25% to > (-)0.50% 4 - 6 M

Difference 0.80 > (-)0.5 % 7 - 10 H

3.9 Average Return on Advances

7 HIGHAvg return on adv of the branch 11.39 > 1% to 0.50 % 0 - 3 L

Avg return on adv of the Circle 10.99 < 0.50 % to (-) 1.50 % 4 - 6 M

Difference 0.40 > (-) 1.50% 7 - 10 H

3.10 Non-Interest Income (%age growth)

9 MEDIUMNon-Interest Income for 31.03.14 6.17 > 50% to > 10% 0 - 6 L

Non-Interest Income for 31.03.2015 5.62 10% to (-) 10% 7 - 12 M

%age growth -8.91 > (-) 10% 13 - 20 H

3.11 Average Business per employee

13 HIGHAve Buss per employee for 31.03.14 267 > 10% to 5% 0 - 5 L

Ave Buss per employee for 31.03.2015 239 >5% to 1% 6 - 9 M

%age increase in buss per employee -10.4 < 1% to Negative 10 - 15 H

3.12 Average Profit per employee

8 HIGHAve Profit per employee for 31.03.14 8.00 > 10% to 5% 0 - 3 L

Ave Profit per employee for 31.03.2015 6.22 >5% to 1% 4 - 6 M

%age increase in Profit per employee -22.25 < 1% to Negative 7 - 10 H

3.13 Revenue Leakage

0 LOWTotal Profit/Loss in year ending 31.03.2015 31.32 0% to 2% 0 - 6 L

Revenue leakage detected in FY 31.03.2015 0.00 >2% upto 5% 7 - 12 M

%age 0.00 > 5% 13 - 20 H

3.14 Reduction in Controllable Expenses (refer check list)

0 LOWNon-Interest Expenditur for 31.03.14 Good 0 - 5 L

Non-Interest Expenditur for 31.03.2015 Satisfactory 6 - 9 M

%age increase NA Unsatisfactory 10 - 15 H

TOTAL EARNING RISK SCORE (I.E. SUM OF RS OF 3.1 TO 3.12) 54

SUMMARY SCORE SHEET OF BUSINESS RISK

Parameters

Present Risk Assessment

Marks allocated by

Auditor ZAO Risk

1 Credit Risk 520 520 76 LOW

2 Operational Risk 280 280 32 LOW

3 Earning Risk 200 200 54 LOW

Total 1000 1000 162 LOW

Controllable expenses are expenses other than Intt, Establishment & other fixed expenses like rent of building, AMCs etc. The auditor should assess this parameter on the basis of efforts made by the Br officials in reducing the controllable expenses.

Sr. No.

Max. Marks

Appli-cable Marks

Previous Risk Assessment by ZAO Direction of

risk (by ZAO)Risk Cate-gory Marks

allocated

RBIA 13/2014

Parameters


Auditor ZAO

I. Credit Functions

1 Exercise of Loaning Powers 23 23 3.3 LOW

2 Pre-sanction Appraisal 44 44 6.9 LOW

3 18 18 5.3 LOW

4 Mortgages 36 36 3.6 LOW

5 75 75 13.1 LOW

6 Acceptances, Endorsements 10 10 1.0 LOW

7 Bills Purchased/Discounted 14 14 1.4 LOW

8 Forex Credit 20 0 0.0 NA

9 NPA Management 36 36 9.6 LOW

10 Revenue Audit in Credit 10 10 3.0 LOW

11 Other Observations 14 14 1.4 LOW

Sub-Total 300 280 48.6 LOW

II. Non-Credit Functions

1 Balancing 12 12 1.2 LOW

2 Cash Management 9 9 2 LOW

3 Currency Chest Functions 8 0 0 NA

4 Remittance in transit 6 6 0.6 LOW

5 ATM 8 8 0.8 LOW

6 Banker a/c & Clg. Imprest 12 12 1.2 LOW

7 Suspense account 7 7 0.7 LOW

8 Sundry Account 7 7 0.7 LOW

9 24 24 2.4 LOW

10 Opening of a/cs & KYC norms 82 82 12.4 LOW

11 26 26 2.6 LOW

12 16 16 1.6 LOW

13 4 4 0.4 LOW

14 Conduct of Govt. Business 8 8 0.8 LOW

15 Safe Deposit Vault etc. 10 10 1 LOW

16 Customer Service 11 11 1.1 LOW

Sr. No.

Max. Marks

Appli-cable Marks

Previous Risk Assessment by ZAO Direction

of risk (by ZAO)

Marks allocated by Risk

Category Marks allocated

Risk Category

Documentation & creation of Charges.

Post-sanction Monitoring & Follow up

Checking of Reports & Morning checking

Conduct & maintenance of a/cs & RecordsSecurity Forms Inventory ManagementBills for collection, DD Receivables & Parcels

12



13


Parameters


Auditor ZAO

III. Computer Functions

1 Environmental Controls 12 12 1.2 LOW

2 Physical / Logical Controls 31 31 3.1 LOW

3 25 25 3.7 LOW

4 Networking Controls 10 10 4.8 MEDIUM

5 Operational Controls 22 22 3.4 LOW


IV.

1 Status of Previous Insp. Report 100 100 26 LOW

2 Submission of Crucial Returns 40 40 4 LOW

3 Communication & Response 40 40 4 LOW

4 Regulatory Compliance 20 20 2 LOW

Sub-Total 200 200 36 LOW

V. Branch Management –

A. General

1 Job Knowledge of staff 8 8 0.8 LOW

2 Up Keep of Branch Premises 22 22 10.8 MEDIUM

3 Expenditures 10 10 1 LOW

4 Punctuality / Discipline 16 16 1.6 LOW

5 12 12 1.2 LOW

6 HRMS 12 12 1.2 LOW


B. Security

1 Security Infrastructure 20 20 5 LOW

2 23 23 2.3 LOW

3 Security Procedure 12 12 1.2 LOW

4 Fire Safety 15 15 11.9 HIGH


Sr. No.

Max. Marks

Appli-cable Marks

Previous Risk Assessment by ZAO Direction

of risk (by ZAO)

Marks allocated by Risk

Category Marks allocated

Risk Category

Maintenance & Business Continuity Controls

Compliance Functions

Rotation of Duties & Placement of Staff

Security Manpower & Equipments

14


GRAND TOTAL (I TO V ) 1000 972 167 LOW

15


\



1 EXERCISE OF LOANING POWERSItem Risk Parameter Risk Yes/ Annex- Deviation RiskNo. Wt No ure No. F V S Scor

A B C D E F G H I1

5 Y 1 5

1 22 N CR- S M 6 12

3 6Y 1 6

ZTL

4

4 Y 1 4

54 Y 1 4

62 Y 1 2

TOTAL 23 332 PRE-SANCTION APPRAISAL

2 15

N CR- F N 2 10FSI

3

2

2

N CR- S M 6 12

FSI

3

5Y F 1 5

FSI

4 4 Y 1 4FSI

4 5

2 N CR- S M 6 12

CONTROL RISK - CREDIT FUNCTION

Loaning powers have been exercised judiciously, within vested powers and have been exercised within the command area.

Loan is sanctioned by the competent authority, is duly recommended by the second officer on prescribed loan proposal format

Overdrawing/adhoc limits have not been allowed beyond discretionary powers & if allowed, action has been got confirmed from competent authority

(a) Over-drawings / adhoc limits under discretionary powers have not been allowed: (i) Frequently, as a matter of routine,(ii) Where limits are overdue for review/ renewal,(iii) Where adequate stocks are not available,(iv) In account(s) showing signs of incipient sickness even if it is under Standard Asset category. (b) Drawings against uncleared cheques/ drafts have not been allowed in a routine manner.(c) Clean overdrafts within discretionary powers are adjusted within stipulated time.

Facilities particularly LC/Guarantee/ Bills Purchased are not extended on ad-hoc basis frequently instead of setting up of regular limits.

No other irregularity observed in the guidelines relating to exercise of loaning powers (not covered above)

KYC norms have been adhered to / spot verification of borrower’s / guarantor’s place of business/ residence is done/ antecedents are verified to ascertain the genuineness of the borrower/ guarantor and have been recorded in the visit Register.

a). Photographs, photo based ID proof, address proof & PAN (duly verified) of borrower/guarantor & other co-obligants are available on record and ID & address proof documents are entered un (#) detail in CUMM in the system correctly.(b). Unit inspection register as prescribed has been maintained

Eligibility criteria have been adhered to and proper scrutiny of past conduct of account of borrower / guarantor is done by obtaining statement of Bank a/c for past six months,Copies of salary certificates, Income Tax Returns, details of Revenue Record (Khasra/Khatoni) have been got verified from related Offices.

CIBIL records, RBI defaulter lists, ECGC caution lists etc. have been verified to ascertain previous indebtedness of borrower.

(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.(b) CIRs from CIBIL form part of the proposal and copies thereof being kept in 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

4 Y 1 4

A B C D E F G H I7

4

Y 1 4

ZTL

8

3 Y 1 3

9

4 Y 1 4

103 Y 1 3

4 Y 1 4

4 Y 1 4

TOTAL 44 69

(a) In case of financial information/documents signed by CA Firms and submitted by Borrower, (i) Status of Membership and Address of CAs/Firms is ascertained from the Website of ICAI, and(ii) Confirmation is sought from concerned CAs/Firms about genuineness of signatures affixed on financial information/ documents to ensure their authenticity.(b) 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. (c)Assessment of technical feasibility and economic viability of project is ensured by technical officer and appraising officer.(d) Standardized Credit Appraisal Format has been used wherever applicable

(a) Credit risk rating has been done in eligible a/cs as per applicable Risk rating Model and vetted as prescribed.(including accounts due for renewal) (b). Accounts having FB + NFB exposure of above Rs 5 crore have been got rated from approved external rating agency.(c).Wherever applicable Loan Automated Processing System (LAPS), Rule based lending system (including eligible SME advances, Agricultural advances etc.) is being followed. (i) All MSME loans up to Rs. 50.00lacs excluding transport sector & documentaryfilms, have been scored in the scoring Models “PNB SCORE SME”.(ii) Advances to Retail trade (New cases & renewals), Qualified Medical Practitioners & Gramin Chikitsak have been scored in RAD Model PNB Score and all credit decisions have been taken on the basis of score obtained.(iii) Entering score card id in free text field (which is mandatory) has been entered in the CBS (Refer check list)

(a). CRs of borrowers/ guarantors have been compiled properly and are indexed. (b). Assets as per CR have been verified.(c). Compilation and review of CR’s has been done properly, necessary supporting papers obtained and verified.

Search certificate in respect of Registration of charge and also in respect of existing charges have been obtained from ROC and held on record

Guidelines relating to takeover of advances from other banks/FIs (including rating norms) have been adhered

11In case of renewals/ enhancement, adverse features like improper conduct of the a/c, significant variance of projected / provisional balance sheet with final balance-sheet, over dues to other banks/ financial institutions, IR irregularities etc. have been considered in the proposal.

12(a) Other HO Instructions / guidelines are followed, such as - Information which affect interest of borrowers (such as margin requirements, interest rates, various fees/charges etc.) are provided alongwith loan application.- Proper application form complete in all respects duly signed, is obtained from the borrower.- Letter of sanction is being issued to borrowers, Acceptance of terms & conditions obtained from the borrower and copy of Documents handed over to the borrowers.(b) In case of rejection, applicant is intimated the reasons of rejection.(c) Necessary clearances/licenses/approvals have been obtained.(d) Proposals (including export) are disposed off in prescribed time.(e) Proposal received and disposal register is maintained and updated properly.The loan proposals are entered in the On Line Tracking System, wherever applicable. Loan applications received and disposal register are maintained at SSAs (Financial Inclusion)(f) Pre Sanction conditions if any, given in sanction of HO/Circle Office/Retail Hub have been complied.(g) All other formalities prescribed in bank’s various schemes such as Retail Lending, Agriculture Advances, SMEs etc., have been completed.



3 DOCUMENTATION AND CREATION OF CHARGE 5 1

7 N CR- S M 6 42

4Y 1 4

FSI

1 Y 1 1

4 2 Y 1 2

5 4 Y 1 4

TOTAL 18 534 MORTGAGES

1

6

Y 1 6ZTL

2

4 Y 1 4

6Y 1 6ZTL

5 Y 1 5

5

5 Y 1 5

3 Y 1 3

(a) All the requisite documents have been obtained / properly executed and held on record including jointly executed documents in consortium advances (copies of documents, in case of consortium advances, where we are Member). (b) Certified that documents are enforceable in the court of law.(c) Vetting of documents before and after execution have been got done from Bank’s approved advocate, wherever applicable.(d) Documents have been adequately stamped as per rate in force.

2Creation of charge Bank’s charge is registered with the Registrar of Companies within stipulated time and search report thereafter obtained .

3In 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 created in the intervening period by the other Bank/lending institutions to the detriment of Bank’s interest

Second/ Pari-passu and modification of charge is created on the securities charged to the bank within the stipulated period.

Vehicles financed by the bank are jointly registered within one month from the date of disbursement of the loan amount if not simultaneously.

a.) 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 and not merely 13 years.b.) Certified copy of title deed obtained/verified and kept on records. c.) Equitable mortgage created has been registered with central Registry within 30 Days of creation of EM.

IPs offered have been properly got valued from Bank’s approved valuer on Bank’s prescribed format covering points like verification of sites, approved plan, etc.

3BM`s visit cum valuation report certifying valuation of IP is held on record. Site verification of IP has been done independently. Photograph of IPs mortgaged has been obtained & kept on record. (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 property.(c) Certified copy of Board resolution of company mortgaging its IP for 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

The title-deeds of mortgaged IPs have been received within stipulated period and are held on record. (Housing loan cases where the title-deeds 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.(b)All documents mentioned in NEC have been obtained & complete chain of title deed has been obtained.



4 Y 1 4

3 Y 1 3

TOTAL 36 365 POST SANCTION MONITORING & FOLLOW UP

14 Y 1 4

2

1 Y 1 1

33 Y 1 3

4

2 Y 1 2

5

4 Y 1 4

5 Y 1 5

7

5 Y 1 5

8

4 Y 1 4

6 9

6

N CR- F N 2 12

ZTL

105

Y 1 5

7(a) All title deeds in respect of mortgages created are available on record.(b) Title deeds have been kept in strong room in fire proof almirah.(c) Annual checking of Title deeds is being done and necessary certificate is available on record.(d) Fresh valuation of IP’s have been got done in all applicable cases as prescribed.(e) IPs held as collateral securities are checked at prescribed intervals and proper record is maintained in a register thereof.

8(a) Noting of charge/ mortgage in the records of sub-registrar & Revenue authorities has been got done within stipulated time & mutation also got done.(b) Mutation of charge has been verified from Municipal/Revenue records

All the terms & conditions of sanction (including advances under retail lending schemes) have been complied with. (Refer check list).

LADDER Data is created/updated and also checked without delay and in terms of guidelines. Authenticity of Data is ensured. Outsourcing of LADDER work is not being done.

CARD audit has been conducted in eligible accounts and no report in respect of CARD Audit is due for closure

(a) Subsidy has been lodged/ received in eligible cases.(b) All guidelines relating to subsidy provided under Govt. sponsored schemes are followed and interest is not charged on loan amount representing subsidy component.(c) Interest subvention is claimed from the Govt. as per guidelines and correct interest is charged.(d) Claims have been lodged in time and proper record is maintained

(a) All sanctioned limits, including Term Loans, have been renewed /reviewed as per Bank’s prescribed guidelines within due date.(b) CRs for all sanctioned limits have been reviewed/renewed, as per prescribed guidelines.(c) CRs in case of NPAs have been reviewed/compiled, if not reasons thereof have been recorded.

6(a) Balance-sheet and other financial papers for renewal of WC limits have been obtained from the borrowers. (b) Any deterioration in Risk rating of an advance in respect to previous rating has been taken into a\c at the time of review/ renewal.c) Audited annual statements of accounts have been obtained, wherever applicable & on scrutiny no variations have been observed

Pricing of loans (application of rate of interest on advances) has been done as per prescribed guidelines & as per risk rating of the account wherever applicable

Sales proceeds are being routed through the account by the borrowers. Indicate the %age of sales routed through the a/c vis-à-vis actual sales and projected sales

(a) End use of bank’s finance has been verified, guidelines regarding disbursement complied, genuineness of supplier ascertained and necessary certificates from borrowers / auditors about non-diversion/ non-siphoning of funds obtained. (Refer check-list).(b) In case of in-correct certification about end use of funds, prompt action has been initiated, including withdrawal of sanctioned facilities & legal recourse.

Stock Statements are submitted in time by borrowers and stock/ securities are being checked by the branch officials as per terms of sanction/guidelines and record thereof maintained. (separate report is to be prepared for advances of Rs. 5 lacs and above)



10

FSI

Y 1 5

11

2 Y 1 2

12

4 Y 1 4

13

5 Y 1 5

14

5Y 1 5

FSI15

5 Y 1 5

16

5 Y 1 5

7 17

5 N CR- S M 6 30

8 185 N CR- S M 6 30

TOTAL 75 1316 ACCEPTANCES, ENDORSEMENTS & OTHER OBLIGATIONS

1

3 Y 1 3

2 Entries of expired LGs have been reversed as per prescribed guidelines. 1 Y 1 1

Stock Statements are submitted in time by borrowers and stock/ securities are being checked by the branch officials as per terms of sanction/guidelines and record thereof maintained. (separate report is to be prepared for advances of Rs. 5 lacs and above)

(a) Stocks are being checked in rotation by different officials.(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 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 them3.Market rates register is properly maintained

(a) Stock audit in applicable cases has been got done.(b) QRS (2 lac to 1 Cr)/ QMS (5 Cr & Above) statements, wherever applicable (WC 1 Cr), are submitted timely and held on record (including those within BM powers).(c) PMS (Preventive Monitoring System , Total Loan (1 Cr & above) Statements are submitted in applicable cases.(d) PERT Charts, in case of Term Loans of Rs 25 Crore and above are prepared and monitoring is done as prescribed.

(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 accounts including NPAs and entered in CBS system.(b) All insurance policies are renewed on a common date i.e. 15th May, 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 com. approved by bank.

a) Limitation is available in all loan accounts including NPAs and BC letters are obtained at given periodicity and entered in CBS System.(b) No procedural irregularity has been observed in limitation and BC letters. (Refer check list)

All formalities relating to sanction and disbursement are complete in a/cs with securities like Deposits, NSCs/ KVPs, Life Policies, RBI/Govt. Bonds, Shares/ Debentures/Units of Mutual Funds, & Gold/Silver Jewellery/Ornaments etc. and Pension Loans. (including such loans to staff members).

All formalities relating to sanction and disbursement are complete in loans under Staff Welfare Schemes like Housing Loans/ Vehicle Loans/ Festival Loans/Clean OD limits etc. (Refer check-list)

Prompt action is taken in case of persisting irregular accounts / potential NPAs. (details of outstandings irregular a/cs for more than Rs.1 lac are to be enclosed)

All out efforts are made for recovery in priority sector and non-priority sector advances

(a) Facilities of NFB has not been allowed on ad-hoc basis and bills under it not co- accepted where customer is not enjoying credit facilities from us.(b) Terms of sanction and system & procedures are followed in issuance of LGs/LCs. (Refer check-list)



34 Y 1 4

42 Y 1 2

TOTAL 10 107

1 4Y 1 4

FSI2

2 Y 1 2

31 Y 1 1

44 Y 1 4

5

2 Y 1 2

6 Bills are promptly dispatched through courier / registered post. 1 Y 1 1

TOTAL 14 148 FOREX-CREDIT

1 Prescribed procedures are followed in export credit.(Refer check-list) 0 NA

2 Prescribed procedures are followed in import credit.(Refer check-list) 0 NA

3 Prescribed procedures are followed in other forex operations. 0 NA

40 NA

5 FLCs are scrutinised properly. 0 NA6

0 NA

TOTAL9 NPA MANAGEMENT

9 14 N CR- S M 6 24

10 2 There is no fresh slippage of advances to NPA category. 5 N CR- S M 6 30

34 Y 1 4

4

5 Y 1 5

53 Y 1 3

11 6 There is no erosion of primary/collateral securities in NPA accounts. 3 N CR- S M 6 18

7

5 Y 1 5

8 5 Y 1 5

92 Y 1 2

TOTAL 36 96

Bank’s dues have been recovered from customer wherever LGs/LCs have been invoked/devolved. If debited to ‘Due Date Default’, bank’s dues stand recovered.

LCs have not been opened without consent of competent authority, where there have been two consecutive devolvement.

BILLS PURCHASED/ DISCOUNTED Unauthorized DDs / Accommodation bills/cheques have not been purchased and if purchased, got confirmed from the competent authority.

No irregularities have been observed in bills purchased / discounted transactions.(Refer check list)

Detention period at drawee branches is generally adhered to and proper follow up of overdue bills is made.

DDs purchased are realized in reasonable time. Efforts are made for recovery in overdue cases. List of DDs outstanding for more than 30 days be enclosed.

Bills drawn on parties whose bills have been returned unpaid / unaccepted earlier, are not again accepted for purchasing/ discounting.Amount has been recovered from the party in respect of Bills/cheques returned unpaid.

The amount of loss is recovered where Forward Contracts booked by the parties are not honoured.

The unrealised export bills are de-linked on due dates and the un-recovered portion, if any, is debited to the appropriate head.

(a) Identification of NPAs & their reporting is done as per guidelines.(b) Identification of NPA through LADDER matches with CBS System.

There are no cases of quick mortality (advances becoming NPA within one year of release/disbursement)

(a) Efforts have been made for upgradation of a/cs under NPA category by making all efforts including implementation of Securitisation Act for recovery/State Recovery Act/ Lok Adalat, wherever applicable.(b) Timely & Proper steps have been taken for taking possession of IP’s and disposal of properties possessed under SARFAESI Act.

Proper record of all written- off a/cs is maintained and continuous efforts are being made for recovery in written off accounts.

(a) Suits have been filed in eligible cases.(b) In suit filed cases proper follow up is made with advocates / DRTs for fastening recovery.

(a) Application for Attachment before judgement has been made in eligible cases.(b) Execution petitions have been filed in Decreed Accounts and are being followed up regularly/ effectively.

Proper follow up has been made in the cases where Recovery certificates have been filed under State Recovery Act.



10 REVENUE AUDIT IN CREDIT1

3 Y 1 3

12 2

2 N CR- S M 6 12

13 32 N CR- S M 6 12

41 Y 1 1

5

2 Y 1 2

TOTAL 10 3011 OTHER OBSERVATIONS 1

4 Y 1 4

2

2 Y 1 2

31 Y 1 1

41 Y 1 1

54 Y 1 4

6 Any other irregularity not covered anywhere in credit function 2 Y 1 2

TOTAL 14 14II - NON CREDIT FUNCTION

1 BALANCINGItem Risk Parameter Risk Yes/ Annex- Deviation RiskNo. Wt No ure No. F V S Score

1 5Y 1 5FSI

2

2 Y 1 2

3 5Y 1 5FSI

TOTAL 12 12

Following reports are being generated checked and corrective action being taken.(a) Shortfall charges Report (Dayrpt 23/3) generated and charges recovered on daily basis.(b) Report CHGIR generated & checked for recovery of deviated charges.(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

(a) Correct interest rates are being charged in loan accounts.(b) Cases with Interest rate reset clause stipulations are diarized and the interest rates are examined/reviewed w.e.f. reset date (c) Correct interest table codes have been entered in the system in loan accounts.

Interest success and failure reports are being generated and corrective action being taken.

(a) Penal interest is being recovered.(b).Checking of interest calculations and interest applications is being done, as prescribed.

(a) Processing fee/ Upfront fee/Documentation charges have been recovered in all loan accounts as prescribed.(b) Charges for allowing advances against uncleared effects are invariably recovered. (.Ref-report Raudit 2/20)(c) All charges to be recovered from borrowers have been recovered (NEC, 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.

SRM (Security Register Maintenance) is done / updated correctly, vital details such as limitation, insurance, drawing power etc. are properly entered, updated and valid MIS Codes correctly entered in the system for MIS generation in the CBS System. List irregularities, if any.

Guidelines in respect of exposure to sensitive sectors (which includes finance to Capital Market, Real Estate Sector, Edible Oil, Cash Crops, Agriculture Produce and other Sensitive Commodities) have been followed.

Guidelines in respect of credit exposure to a single/ group or industry have been followed.

Guidelines in respect of consortium advances/multiple banking have been followed including periodical exchange of information/financial data

Guidelines in respect of sick units, terms & conditions of rehabilitation packages and monitoring of such units etc. are followed.

All balances required to be tallied in CBS have been tallied. (including manual ledgers if any).

(a) Balances of overdue FD/RD/cash order wherever kept in current account have been tallied / reconciled as prescribed.(b) Balances of PPF/RBI Bonds/ Tax Savings scheme have been reconciled with RCC/Link Office

Balances of any head(s) has not been tallied by creating a separate dummy account for parking of entries and there is no outstanding in upload accounts.



2 CASH MANAGEMENT1 1

1 N NCR- F N 2 2

2 3Y 1 3

FSI3 2

Y 1 2FSI2 4

2 N NCR- S M 6 12

5 No other deviations have been observed.(Refer check-list) 1 Y 1 1

TOTAL 9 203 CURRENCY CHEST FUNCTIONS

1

0 NA

2

0 NA

3

0 NA

4

0 NA

5

0 NA

60 NA

TOTAL4 REMITTANCE IN TRANSIT

15

Y 1 5FSI

2

1 Y 1 1

TOTAL 6 65 ATM (INCLUDING CASH MANAGEMENT)

11 Y 1 1

(a) Cash Ratio of the branch is & is not with in prescribed limit. (average from last Inspection till date for fridays & monthe end)(b) Cash beyond prescribed/ insurance limit was not held (c) Insurance of cash and devices are arranged by BCA/BCO. (Financial Inclusion)

Cash is kept in joint custody (including cash at ATM)& checked at prescribed intervals.ATM Cash register (PNB 1064) is being maintained.

Proper control over tokens is exercised, PNB 135 is maintained and safeguards are followed meticulously

(a) Clean Note Policy is being observed.(b) Cashiers/ Head Cashier have been provided CBS system and are using the same.(c) Duplicate keys (including ATM Key) have been got exchanged during the course of audit.(d) System of computer generated Cash receipt has been implemented. (e) System generated receipt is being given to all customers on Successful transaction and records of the same is properly maintained at all Sub Service Areas (SSAs) (Financial Inclusion)

(a) Monthly certificate in terms of GBD HO Circular is being submitted to Circle Office by Currency Chest.(b) Bi Monthly verification of chest balances is being done by an officer duly authorized by the Circle Head.

(a) Police guard / Home Guard deployed in the Currency chest Whether the strength of police guards found adequate at the time of inspection (check their attendance register).(b) Various security gadgets installed in Curr Chest are in working order

(a) Currency chest slip on form i-02/ICCOM format showing daily transactions / operations as well as currency chest balance is put up to the Incumbent Incharge on daily basis.(b) Balances are tallied on daily basis with Link office / RBI.(c) Currency chest is implementing all parameters of clean note policy.

Currency chest book in TE-1 is maintained by chest officer strictly as per RBI instructions and daily cash balance report sent to link office / RBI through I-02/ICCOMS report duly tallied with balance in currencychest book

(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.(c) Cash holding in currency chest is within capacity.(d) Joint custody / control is exercised by both the custodians.(e) Transactions are not allowed by the C.Chest directly to any customer.(f) Branch Cash/ Documents are not kept in the strong room of C.Chest

No amount is outstanding in suspense register on account of shortage /forged note detected.

Prescribed safe guards have been observed in remittances & Cash Movement Cash Remittance Register (PNB861) is properly maintained

(a) Cash is being remitted through authorized vehicle/prescribed mode only.(b) No entry remains outstanding beyond a period of 3 days in the branch relating to remittance to other offices/Currency Chest.

a) ATM cabin door lock is working, cabin is clean, dust free and AC functions properlyb) CCTV installed in ATM is functional and recording is retained as prescribed.



2

1 Y 1 1

31 Y 1 1

4

1 Y 1 1

5

2 Y 1 2

6

2 Y 1 2

TOTAL 8 86 BANKERS ACCOUNT AND CLEARING IMPREST ACCOUNT

1 6Y 1 6

ZTL

22

Y 1 2

FSI

33

Y 1 3FSI

41 Y 1 1

TOTAL 12 127 SUSPENSE ACCOUNT

11 Y 1 1

21 Y 1 1

3 Proxy entries in Suspense a/c are adjusted within 3 days. 2Y 1 2FSI

4 2Y 1 2FSI

51 Y 1 1

TOTAL 7 78 SUNDRY ACCOUNT

11 Y 1 1

2 Proxy entries in Sundries are reversed at the earliest / within 3 days 2Y 1 2FSI

(a) Cash holding limit has been fixed as per norms.(b) In case of ATMs where cash is replenished by the branch, BM/ 2nd man conduct physical checking of cash alternately on fortnightly bases and at irregular intervals.

(a) Custody of the Top Chassis of the ATM remains with ATM Incharge(b) In case of bio-metric ATM- Admin Card remains in dual custody.

a) ATM custodians or outsource outsource CIT agency perform EOD activity as prescribed to check the cash in each cassette physically and tally the same with printout taken from machine.(b) All necessary records are maintained in prescribed register as applicable to ATM

(a) Combination lock is changed by new custodian during handing over / taking over process and new code replaced in sealed cover.(b) JP logs are retained in branch record with vouchers

(a) ATM Imprest account (Finacle – 5811331) is reconciled on daily basis.(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 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

Branch is tallying / reconciling Clearing Imprest account (3211201) entries on daily basis and making it NIL on Friday but not by parking difference in a dummy account

(a) Branch is tallying/ reconciling imprest accounts of Extension counters/ administrative offices and other impersonal accounts including subsidy account at prescribed periodicity. (b) In case of on-line mode, all transactions of SSAs are being routed through the settlement account of BCA. (c) In case of offline mode, customer account balances are reconciled with the bank. SSA Transactions are being uploaded on daily basis,whenever required. (Financial Inclusion)

1 AOFs of all a/cs opened are available on record and kept under proper custody.Banker’s account is tallied with GL and reconciled with statement received from the concerned Bank periodically and proper follow up is made for early adjustment of outstanding entries. Differences are not parked in a dummy account. Details of un- reconciled entries of more than one month old be attached.

Heavy balances are not maintained in Banker account and excess balances are remitted through RTGS.

(a) All debits are passed by the Incumbent Incharge/authorized officer. (b) No unauthorized debits / unusual items observed.

Report on outstanding entries are taken down every month and checked by Incumbent Incharge

Suspense clearing entries are adjusted within 10 days and clearing differences have not been parked in Suspense Account

There are no old outstanding entries (beyond 15 days) including RDA other than of permanent nature. If yes, details of such entries be attached.

Original vouchers are retained in separate file as per prescribed procedure and concerted efforts made for adjustment of outstanding entries



3

1 Y 1 1

4

1 Y 1 1

5

1 Y 1 1

61 Y 1 1

TOTAL 7 79 DAILY MONITORING SYSTEM (DMS) & CHECKING OF REPORTS

1

4 Y 1 4

2

5

Y 1 5FSI

3

6

Y 1 6ZTL

4

3 Y 1 3

56

Y 1 6ZTL

TOTAL 24 2410 OPENING OF ACCOUNTS AND KYC NORMS

(a) Entries pertaining to Sundry FEX revaluation, TDS, ATM, Sundry FD interest, excess cash unclaimed for more than 6 months etc. are being adjusted in time and as per guidelines.(b) There are no old outstanding entries (beyond one month) other than of permanent nature. If yes, details of such entries be attached

Entries connected with deposit a/c :- outstanding for more than 2 years stands transferred to ‘Sundries – Unclaimed Deposit’ head on half yearly basis.- outstanding for more than 5 years have been transferred to Circle Office as per prescribed procedure/ guidelines

Entries in Sundry Non Customer a/c 3171160 and Sundry RCC 3171158 are normally reversed on daily basis, but no entry remains outstanding for more than 3 days.

(a) All debits are passed by the Incumbent Incharge/ authorized officer. (b) No unauthorized debits / unusual items observed.

Following reports are being generated and checked - Dayrpt 1/8-List of authorized users. - Details of manual transactions where value date is less than Trans date. PNBRPT 2/29A.- Day Book

a) Control Reports (vig ‘User Created Transfer Entries’, ‘System Generated Transfer Transactions’ and ‘Clearing Journal) prescribed for tallying of vouchers are being generated. b) Other important reports of PNBRPT, PNBREP, DAYRPT and RAUDIT are generated and checked regularly. Corrective action is being taken in terms of reports generated and checked.

(a) Daily Monitoring System (DMS) is meticulously implemented in Branch and following Control reports are generated / monitored / checked daily as prescribed:(i) Exceptional Transactions Report (EXCPRPT)(ii) Temporary overdrafts Report (TODRP)(iii) Outstanding Proxy Posted Transactions (SPTM and MSGOIRP)(iv) Long Book of Incumbent (PNBRPT – 2/19)(v) UPM CHANGES Reports (AFP for UPR) - Changes made in the profile of ‘Users’ of the branch.(vi) GL balance Report (DAYRPT – 6/1)(vii) Report on Intersol TOD granted in CC/OD/SB/CA ac (DAYRPT-2/28)(viii) Transactions entered/posted by same employee (DAYRPT-2/20)(ix) Report of Manual Transaction in ‘System only Ac’ (PNBRPT–9/91) (x) Report on Position of Assets & Liabilities.(b) All above reports have been filed and stored properly.

a) Products and interest calculation checked as per guidelines.b) Intt Success & Failure Reports in Deposit A/cs and other Raudit reports are generated, checked and corrective action is being taken.c ) Correct provision of intt accrued on deps & adva has been made .

Confirmation/authorization by the Incumbent Incharge/authorized officials obtained on vouchers relating to Intt Accrued Head, as per guidelines



1

10 Y 1 10

FSI

2

5 Y 1 5

3

5Y 1 5

FSI4

6

Y 1 6

FSI

5

6Y 1 6

FSI

6 Independent verification of the address of new a/c holders is done. 5Y 1 5

FSI7

5Y 1 5

FSI8

6Y 1

6

ZTL

(a) Proper AOFs have been obtained in respect of all accounts opened including accounts at SSAs (Financial inclusion) (b) AOFs of all a/cs opened are available on record and kept under proper custody . (c) AOFs of SSAs are being sent to the base/link branch for verification and opening of Accounts. (Financial Inclusion) (d) Required KYC documents/Photograph of the customer are collected in repect of all SSAs (Financial inclusion) (e) AOFs accompanied by all supporting papers like Partnership deed, Memorandum and Article of Association, PNB 984 etc as prescribed. (f) While opening accounts of Sole-Proprietorship Concern, "Customer Identification Procedure' guidelines are followed. (g) In addition to KYC documents of the Proprietor, any two documents in the name of the firm are being obtain ed as per banki's guidelines.

(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.(b). Records for NRE accounts and relative AOFs are kept separately as per RBI directives. c) Bio metric of the customers is being captured in presence of Bank Officer at BCA locations

(a) Self attested recent photograph of the account holder have been obtined (b) Photographs havee been duly verified by branch official with PA number.

(a) Proper Photo based ID proof has been obtained. (b) ID proof document obtained is properly entered in (#) details in CUMM in the system. (c) Photograph on ID proof matches with actual photograph. (d) Name on ID proof and on AOF/System is exactly same. (e) Photo ID Card for BCA has been issued by the Bank in case of individul BC and jointly in case of BC Agent of Corporate BC by the Bank and BC (Financial inclusion).

(a) Address proof document has been obtained. (b) Address proof document is properly entered in (#) detail in CUMM in the system. (c) Address on address proof and on AOF/System is exactly same. (d) Letter of thanks is sent to new account holders through Regd Post/Speed Post or through courier & POD is held on record

(a) ID Proof/address proof are not old and are valid (e.g. copy of telephone bill/electricity bill/bank a/c/ statement.credit card statement held is not more than three months old, Passport/DL expiry date is not prior to account opening date etc.).(b) Photocopies of ID proof and address proof have been verified from originals and duly signed by verifying official with stamp and PA No (c) Income proof of the depositor has been obtained (Salary Ceretificate, ITR copy, Audited Balance sheet etc.)

(a) PAN/ Form 60 has been obtained in all applicable accounts and copies of PAN Card duly verified held on record. (b) PAN/Form 60 has been recorded in the field "PAN/GIR No.' under Customer Tax details in 'CUMM' in the system. (c) In case of Minors account, Form 60/ 61/PAN of guardian has been obtained



9

6Y 1 6

ZTL10

5Y 1 5

FSI11

4 Y 1 4

12

6 Y 1 6

3 136 N NCR- M M 7 42

14

6 Y 1 6

4 14 Any other irregularity in observation of KYC norms not covered above 1 N NCR- M M 7 7

TOTAL 82 12411 CONDUCT & MAINTENANCE OF ACCOUNTS & RECORDS1

3Y 1 3FSI

23

Y 1 3

FSI

31 Y 1 1

4

5

Y 1 5

FSI

(a)Occupation/activity/profession/business (specify) (Business nature) of the account holder/s has been correctly and specifically mentioned on AOF. (b) Appropriate code of profession/activity/Business nature of the account holder is selected in the system to ensure that correct Risk categorization of customers is done.(c) Correct Risk categorization of customers is being done on the AOF and in the system.

Cheque books in new accounts are not being issued without verification of address

(a) Nomination has been obtained in all eligible accounts and properily recorded. (b) In case minors nomination has been made by guardian only. (c) Acknowledgement of nomination is being given to customer. (d) Nomination has been properly witnessed (Nomination is to be witnessed even in case of non availment of nomination facility by depositor).

(a) Beneficial Owner's is being identified in all the eligible category of accounts as per bank's guidelines. (b) The Cust ID of Beneficial Owner is created and/or entered in (P) details in CUMM in the system with relation code as '026'. Cust ID of an exiting customer is used for opening his/jher account and no fresh Cust ID is created of an existing customer, as per bank's guidelines.(a) Periodical updation of KYC data/information (i.e. obtaining recent photograph, iD proof & address proof document of the customers whose KYC data is due for updation as per their AML Risk Category, are obtained and kept on record), is done as per bank's guidelines. (b) After periodical updation of KYC data of the customer, ID & address proof documents are entered in the system and the field 'KYC updation date' is updated/modified in the (#) details in CUMM in the system.

Transactions in newly opened a/cs are monitored/ watched for at least first 6 months as per guidelines. Every leaf of First cheque book issued is being marked as ‘New Account’ on the top

(a) Transactions are monitored as per AML guidelines and Suspicious Transactions, if any, are reported to KYC-AML Cell, HO for onward submission to FIU-IND. (b) Whether any Anti Money Laundering (AML)/Combating of Financing of Terrorism (CFT) non-compliance issue (major or minor) identified by any audit (internal/concurrent etc.) during the period. (c) In cae if any suspicion or any suspicious transaction is attempted by the customer including walk-in-customer is being reported to KYC-AML Cell, HO for onward submission to FIU-NLD. (d) Counterfeit Currency Note is reported in a prescribed manner on the date of detection itself.

Payment is not allowed on withdrawal slip without passbook. If allowed, permission of incumbent is obtained. & any other irregularity (Refer check list)

a) Cheque book is issued on the basis of request other than on Requisition Slip with BM’s/authorized officers’ permission.b) Requests for personalized Cheque Book / IBS / Debit Card are entered & verified on the same day. (c) Acknowledgements from a/c holders (on PNB 119) are obtained & marked off as prescribed, in case of Non-personalised cheque books.(d) Magnifying Glass and Ultra-Violet (UV) Light Source are installed and used on every desk in the branch dealing with cheque payments / cheques sent for collection / clearing and handling Cash.



5

1 Y 1 1

6 6Y 1 6ZTL

7

1 Y 1 1

8 Vouchers are handed over to Daftri against proper receipt. 1 Y 1 19 3

Y 1 3FSI

10

2 Y 1 2

TOTAL 26 2612 SECURITY FORMS INVENTORY MANAGEMENT1

1 Y 1 1

2 6Y 1 6

ZTL3 5

Y 1 5FSI4 2

Y 1 2FSI

51 Y 1 1

61 Y 1 1

TOTAL 16 1613 BILLS FOR COLLECTION, DDS RECEIVABLE AND PARCELS1

1 Y 1 1

21 Y 1 1

31 Y 1 1

41 Y 1 1

TOTAL 4 414 CONDUCT OF GOVERNMENT BUSINESS 1

3 Y 1 3

23 Y 1 3

a) Letters are issued to Account Holders (after 5 & 21 months for CA a/cs, after 11 & 21 months for SF a/cs), in case of a/cs likely to be transferred to Inactive & Inoperative Category respectively, due to non-operations.b) Demand deposit accounts not operated for 24 months have been transferred to inoperative others accounts.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.

Prescribed safeguards in operation and maintenance of inoperative accounts have been observed.

Full particulars of a/c holder, cheque book issued, other instructions are entered & regularly updated into the system and checked/ authorised by the Section Incharge. Record of the customers instructions etc. kept properly in era files.

Vouchers are tallied,stitched and signed by the custodians in the voucher register and voucher register is up to date.

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.(b) Cash payment Vouchers have been kept in the strong room.

Security forms have been kept in a fireproof cabinet / safe in the strong room, under the joint custody of two officers,

Security forms (including KCC and ATM/ Debit cards) are checked at the time of receipt from Head Office and entered in the system as per guidelines

Security forms have been segregated in High risk /Low Risk categories,as prescribed

Daily in and out register (PNB-862)/ record in CBS is maintained and control is exercised on security forms during the day. IMR is generated and checked.

GBPAs of all authorised officials and Bank’s book of authorised specimen signatures kept in dual custody and handled by authorised official only and updated regularly

a) Periodical checking of Gold Coins is done as prescribed. (b) All guidelines related to Gold and Gold Coin Business are followed.

Procedural instructions regarding custody / disposal of Inward/Outward Bill and Parcels are observed.

Outstandings of unpaid bills is taken down / generated and physical checking of Bills forwarding with outstandings is done on the basis of prescribed guidelines.

Senders’ / branch’s instructions are being complied with and Inward bills are over detained only with express authority from the sender branch / party.

Regular follow up is being done for realisation of instruments sent for collection. (Details of outstandings for more than one month be enclosed).

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 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.

All govt. dues viz. direct taxes, indirect taxes, PPF, etc. are collected and remitted on the same day by Intersol and there is no delay.



3

2 Y 1 2

TOTAL 8 815 SAFE DEPOSIT VAULT & ARTICLES / DOCUMENTS IN SAFE CUSTODY 1

2 Y 1 2

2

2 Y 1 2

3

1 Y 1 1

41 Y 1 1

51 Y 1 1

6

2 Y 1 2

7

1 Y 1 1

TOTAL 10 1016 CUSTOMER SERVICE1

3 Y 1 3

2

2 Y 1 2

No default observed in payment of pension/reliefs/arrears maintenance/ updation of Pension Payment Orders, obtention of life / non-marriage / non-employment certificates and marking payments on PPOs etc.

No irregularity has been observed in obtention and custody of lease-deeds of lockers.

.(a) Locker Module has been implemented in CBS & Manual ledgers are discontinued. (b) Lockers are being operated & their keys are kept by authorized officials as per norms

(a) Locker holders have been classified Medium & High Risk categories. (b) Monitoring of operations in lockers is being done and other guidelines are being followed

Record of Rent in arrear has been properly maintained and regular follow up is made for recovery of overdue rent.

Nomination facility is made available to SDV and locker holders and recorded properly.

(a) Locks of surrendered lockers are interchanged and keys of vacant lockers are checked.(b) No default observed in compliance of guidelines in breaking open of lockers.

(a) Articles in safe custody are kept and recorded properly as per norms/ guidelines.(b) Articles in safe custody are being checked as prescribed.(c) Temporary out register (PNB 167) is maintained for recording movement of securities.

(a) Customers are properly attended & their queries are responded 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 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, Displayof phone number of Helpline etc are displayed prominently in the branch/Sub Service Areas under Financial Inclusion. (h) BC Certificate as an authorised Bank’s BC has been displayed in SSAs. (Financial Inclusion) (i) Records of customers enrolled by SSAs are available and Customer’s contact register is being maintained. (Financial Inclusion)

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 of Head office instructionc) Branch allows interest at prescribed rates for delays in collection of outstation cheques beyond 7 / 10 / 14 days as laid down.d) Branch has implemented ‘Single Window’ system as per HO guidelines.(e) Branch follows extended Business Hours system of the bank.f) One Window remains functional during lunch hours (wherever applica)g) Customers are encouraged to avail SMS Alert Facility & such requests are entered in the system on the same day.



3

3 Y 1 3

4

3 Y 1 3

TOTAL 11 11

1 ENVIRONMENTAL CONTROLSItem Risk Parameter Risk Yes/ Annex- Deviation RiskNo. Wt No ure No. F V S Score

A B C D E F G H I1

3 Y 1 3

2 Electrical and Data cabling is done in structured manner and not loosely held. 3 Y 1 33

4 Y 1 4

4 Whether all PCs/Printers are regularly cleaned and kept dust free 2 Y 1 2

TOTAL 12 122 PHYSICAL & LOGICAL CONTROLS

1

6 Y 1 6

2

4 Y 1 4

3

5 Y 1 5

46

Y 1 6FSI

56

Y 1 6

(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 copies are available and provided to customers.(d) Customer Service Committee is constituted and functioning at the br, 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.

(a) Complaint register PNB-640 is maintained and complaints are entered, Communication from customer is acknowledged .(b) Prompt action is taken on all complaints and redressal is done to the satisfaction of customers.(c) Complaints received from CMD Secretariat are redressed within 48 hours(d) Status of complaints in respect of cashier refusing to accept the cash and directing the customer to deposit the same at cash deposit machine.(e) Call Center site ‘ANDROPNB’ is accessed daily and complaints relating to branch are promptly redressed.(f) Names of Grievance redressal officials and contact numbers have been displayed at SSAs and complaints/feedback received from the SSAs’ customers are forwarded to Circle Head in time. (Financial Inclusion)

III - COMPUTER FUNCTION

Only IT systems are backed up by UPS(except for the minimal support light) and UPS is backed up by generator or standby UPS depending upon the power supply of the area b) The device battery is charged/in ready mode for providing service at SSAs. (Financial Inclusion)

Earth to Neutral voltage is less than 2 and checked at least once in a quarter. (Mention last date of checking with reading).

(a) Proper IT inventory details are maintained and regularly updated in register with following details. PC – Date of purchase, Company, Make, Processor, HDD capacity, RAM, 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 (b) There is safe upkeep of Front end devices viz. HHT, Mobile, PC Kiosk at SSAs. (Financial Inclusion)

.(a) Proper record is maintained in respect of Creation/ Deletion of USER IDs in the user maintenance register on specific approval of Incumbent Incharge or Departmental Head.(b) Ceiling of 40:60 for Free and Captive Users is adhered (in case of VLBs / ELBs).

Proper record is maintained for the password of other users changed by the DBA in the register and same carries approval of the Incumbent/ authorised official.

Adequate segregation of duties is ensured for maker checker concept. Separate userID used for performing DBA functions, routine financial transactions and compliance ensured through report dayrpt 2/20 .

DBA of branch ensures enabling and disabling of users, creation and deletion of users, etc on daily basis and active user list / report dayrpt 1/8 is generated and checked on daily basis by Incumbent In- charge / authorised official.



5

FSIY 1 6

64 Y 1 4

TOTAL 31 313 MAINTENANCE & BUSINESS CONTINUITY CONTROLS

14 Y 1 4

24

Y 1 4FSI

3 Timely support of hardware vendor is available within 4 hours. 2 Y 1 24

3 Y 1 3

53 Y 1 3

6 6 Y 1 6

1 73 N F M 5 15

TOTAL 25 374 NETWORKING CONTROLS

2 12 N F M 5 10

2 Link Downtime register is maintained and updated regularly 2 Y 1 2

3

3 3 N S M 6 18

4 43 N S M 6 18

TOTAL 10 48B C D E F G H I

5 OPERATIONAL CONTROLS1 Duties of IT functions have been allotted through office order. 2 Y 1 22 Number of DBA’s in the branch are as per sanction / prescribed 4 Y 1 43

4 Y 1 4

4

3 Y 1 3

DBA of branch ensures enabling and disabling of users, creation and deletion of users, etc on daily basis and active user list / report dayrpt 1/8 is generated and checked on daily basis by Incumbent In- charge / authorised official.

Undertaking to comply with Security Policy as per ITD guidelines is obtained from users and kept on record.

BCP guidelines are followed in case of link down or non availability of server. Services are rendered to customers as per BCP guidelines.

Vendor/BFs/BCs are not allowed to perform any routine job/ sensitive jobs etc. in place of DBA/ CTO/Authorised officer and their activities are monitored by an authorised official and Equipment taken outside bank’s premises do not contain any information / data. (b) BC Agent is working on working day as per bank’s guidelines. (Financial Inclusion)

(a).Hardware items are covered under warranty/ AMC.(b) .A Copy of AMC/Service Level Agreement is held in the Office.© Users are aware of the terms of AMC and the names and contact numbers of AMC Vendors/helpline number of technology/device provider are known. (Financial Inclusion)

Old data of legacy systems are stored properly. Back up of the same is converted into CD-ROM and kept in joint custody.

Dedicated PC is kept operational on 24x7 basis for updation under BCP Automated Guidelines of ITD.

No obsolete hardware is lying in branch and the same is disposed off as per ITD guidelines.

COMP-

Network equipment like Router / Switch / Modem are placed in the least accessible area in a mounted rack under lock and key.

COMP-

(a) In case of failure of Primary link (normally Leased line), immediate switch-over to Secondary link (normally ISDN line) is ensured.(b) No delay is observed in switch-over back to Primary link, after its restoration. (c) Bills of Secondary link are paid promptly and their functioning is tested on regular basis.

COMP-

Internet access is not given to PC/System being utilized for a bank application having critical data. COM

P-

a) No unauthorised software/ game etc. is loaded in computers b) Access to external media (CDs, DVDs, USB etc.) has been blocked in PCs connected to CBS network

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:Government BusinessCash Management Services (CMS) DepositorySWIFTMobile BankingSMS Alert FacilityPOS TerminalsInternet BankingNEFT/RTGS



5

6 Y 1 6

5 6 The signatures are being captured and authorized in the system on daily basis. 3 N F M 5 15

TOTAL 22 34

IV - COMPLIANCE FUNCTION1 STATUS OF INSPECTION REPORTS

Item Risk Parameter Risk Yes/ Annex- Deviation RiskNo. Wt No ure No. F V S Score

2 1 AIR dt 5.4.14 was closed on 24.6.2014

40 N COL- F M 5 200

2

15 Y 1 15

315 Y 1 15

415 Y 1 15

5

10 Y 1 10

65 Y 1 5

TOTAL 100 2602 CRUCIAL RETURNS

1 Statement register/ calendar of statements is properly maintained 3 Y 1 3

210

Y 1 10FSI

3 Queries related to control & other returns are promptly attended/replied. 2 Y 1 24

10 Y 1 10

55 Y 1 5

610 Y 1 10

TOTAL 40 403 COMMUNICATION AND RESPONSE

15 Y 1 5

2 Courier dak is entered in the register by branch staff only. 5 Y 1 53

5 Y 1 5

45 Y 1 5

510 Y 1 10

5a) Anti virus software is installed on all PCs and is updated. b) Updated version of frontend applications have been downloaded at SSAs. (Financial Inclusion) c) Branch/BC is keeping the PIN/CSP Cards secret to obviate any possibility of unauthorized use of technology/device. (Financial Inclusion)

COMP-

(a) Daily / monthly / quarterly audit reports are promptly attended and irregularities are removed (applicable for under Concurrent Audit).(b) Observations/irregularities pointed out by the auditors during the course of regular audit (both, concurrent & non concurrent br) are attended to promptly & spot rectification done (to the extent possible)

FSI-ZTL, Critical /Very High / High risk/ items are attended on top priority and irregularities are removed within the stipulated / reasonable time.

Irregularities / deficiencies pointed out in Visit Reports of Senior Officers / Security Officer are rectified promptly.

(a) Legal Compliance certificate being submitted and corrective action taken by the branch if irregularities reported in the certificate. (b) Quarterly Statement of cheques dishonoured (of Rs.1 crore & above and 3 or more cheques of Rs.25 lacs to Rs.1 crore per account) for want of sufficient funds is submitted to Circle Office as prescribed.(c) Branch is monitoring accounts reported above with frequent instances of dishonor, having unsatisfactory conduct & borrowal a/cs having liquidity crisis,

Co-coordinator in the concurrent audit branch has been designated and working effectively.

Control returns are generated & checked. Wherever required, the same are submitted timely to controlling office.

Other returns including returns sent to RBI / Income Tax Office and other Statutory returns are checked submitted timely as prescribed.

(a) Proper record of duly signed copies of statements are maintained.(b) List of pending statements is available.

MMC is correctly compiled and submitted on time.Queries of CO on MMC are responded promptly.

Registers for Ordinary/Registered/Courier dak/telegram are maintained as prescribed.

Dak receipt/disposal register is maintained and its weekly outstanding is taken and checked regularly.

Bills, DDs and other documents are delivered to the Officer Incharge with the initials in the Dak Register.

(a) Correspondence from Public/RBI/HO/CO is attended promptly.(b) Email is opened and correspondence generated on daily basis and attended prompted.



65 Y 1 5

75 Y 1 5

TOTAL 40 404 REGULATORY COMPLIANCE

14 Y 1 4

24 Y 1 4

3

4 Y 1 4

4

4 Y 1 4

5 Raj Basha (Official Language) Policy is implemented as per guidelines 4 Y 1 4

TOTAL 20 20

1 JOB KNOWLEDGE OF STAFFItem Risk Parameter Risk Yes/ Annex- Deviation Risk

No. Wt No ure No. F V S Score

A B C D E F G H I1

4 Y 1 4

2

4 Y 1 4

TOTAL 8 82 UP-KEEP OF BRANCH PREMISES

1 1

5 N BM- F M 5 25

2

3 Y 1 3

2 3 Old and unserviceable items have been disposed off, as per guidelines. 3 N BM- S N 3 9

3 4

5 N BM- M H 10 50

5

3 Y 1 3

4 6

3 N BM- S M 6 18

TOTAL 22 1083 EXPENDITURES

Separate files for ‘Documents’ and Correspondence are maintained in Borrowal Accounts.

Correspondence is filed methodically, files are paged properly and the standard of correspondence is satisfactory.

There is no violation of Govt. / RBI Guidelines / Directives. (in case instances of violations are noticed and the same are not covered elsewhere under any parameter, the details be enlisted in an Annexure)

Income-tax, Statutory Returns viz TDS on salary, rent, interest etc. are prepared and submitted in time.

a) Ghosh / Jilani Committee recommendations relating to frauds / mal-practices are complied with. b) Mitra committee recommendations (on legal aspects of Bank Frauds -legal compliance certificate) are complied

(a) In case of fraud ,Fraud Proforma is submitted as per guidelines within 2 days on FMR-1.(b) FIR has been lodged in all fraud cases, as per bank’s guidelines (Present status be given).

V - BRANCH MANAGEMENT FUNCTION - (A. GENRAL)

(a) The staff, particularly in loans and foreign exchange deptt., (including in-charge) have adequate/ requisite knowledge & experience.(b) The staff is adequately trained and equipped with knowledge of CBS/computer system and other new concepts & services.

(a) Whether conscious efforts are made to upgrade the knowledge and skill of staff.(b) Whether staff nominated for training is invariably relieved for participation.

(a) Sign boards/indicator boards are installed/displayed in the branch as prescribed. b) Display of Signage in SSAs as approved by Bank.

i) All SFF items including computers and peripherals are marked with serial numbers and Physical checking is done with SFF records periodically. ii) Provisions like box, almirah for safe upkeep of finger print canner/Device etc. and other stationary/registers are available at BC location. (Financial Inclusion)

(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.(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.

The lease deed/ rent deed of premises is not due for renewal in near future or otherwise requisite steps have been taken to get it renewed in time. Due date of renewal of lease deed

(a) The current cum old record register is maintained, (b) Old record requiring destruction is segregated as prescribed.(c) Old record has been destroyed as per laid down procedure.(d) Date of last destruction



13 Y 1 3

21 Y 1 1

3

2 Y 1 2

4 Excess expenditure, if any, has been got confirmed from the competent authority3 Y 1 3

5 Prescribed procedure has been adopted for making purchases/ expenditures.1 Y 1 1

TOTAL 10 104 PUNCTUALITY / DISCIPLINE

13 Y 1 3

23 Y 1 3

33 Y 1 3

4 Sub-staff is attending the office in proper uniform. 1 Y 1 15

3 Y 1 3

6 Discipline is maintained to ensure prompt / good customer service. 3 Y 1 3

TOTAL 16 165 ROTATION OF DUTIES & PLACEMENT OF STAFF

1

2 Y 1 2

2 5

Y 1 5FSI

31 Y 1 1

42 Y 1 2

5

2 Y 1 2

TOTAL 12 126 HRMS

1

4 Y 1 4

2

4 Y 1 4

Expenditures are incurred under various heads within vested powers and proper record thereof is maintained, as prescribed.

The prescribed crucial statements including QAC are submitted to CO as per guidelines

.(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(b) All expenditure vouchers have been debited to correct heads.

No irregularity observed in timely opening of branch and prescribed public hours are observed.

Staff members mark their presence 15 minutes before the working hours of the branch and do not leave office before time.

Leave record is properly maintained in HRMS and there is no unauthorized absence.

Movement Register, Deviations Register, and Branch Document Register, are maintained properly.

Duty sheet (with complete detail of duties) is implemented through office order and the duties have been assigned covering all aspects of CBS environment like maker checker, separate IDs for DBA functions and financial transactions etc. Branch maintains proper record of duty sheets.

a) Duties of all staff members are being rotated at prescribed intervals and staff members are performing their assigned duties. b) Mandatory availment of leave by staff is complied with. Required no. of BCAs for base branch, as per SSAs mapping are actually functional (Financial Inclusion)

The services of Customer Care Officer (CCO) is being utilised strictly as per duty sheet designed by H.O.

(a) Relations between Incumbent and second man are cordial.(b) Relations between managerial and workmen staff are cordial.

Periodic meetings of staff are held to discuss various issues and for finding solutions to different problems, staff members are involved for improving customer service and achievement of budgets of deposits / advances / profit / recovery / reduction of NPAs/ compromise etc.

(a). HRMS activities are being handled by authorized staff member(s) / officer(s) only and the Pass Word is not compromised.(b) All day to day activities are being performed by the branch in terms of HRDD HO circulars. (HRDD Cir 508 / 14.01.09)(c). Monthly certificate of Incumbent for having paid the salary as per HRMS is invariably held on record.

(a) Attendance is marked in HRMS within 30 minutes from schedule working hours by the incumbent.(b) Leave applications are duly sanctioned, entered in Leave Register through HRMS on day to day basis and filed properly.



3

4 Y 1 4

TOTAL 12 12

1 SECURITY INFRASTRUCTURE (LOCATION / PREMISES)Item Risk Parameter Risk Yes/ Annex- Deviation RiskNo. Wt No ure No. F V S ScoreA B C D E F G H I

1 Branch is located in safe area. 3 Y 1 1 32

5 Y 1 5

3 Windows/ventilators etc. have strong grills/iron bars. 3 Y 1 34

3 Y 1 3

1 5

3 N BMS- S M 6 18

2 63 N BMS- S M 6 18

TOTAL 20 502 SECURITY MANPOWER & EQUIPMENTS

13 Y 1 3

2

3 Y 1 3

3

3 Y 1 3

43 Y 1 3

53 Y 1 3

6 Auto dialer (wherever applicable) is installed and functional. 2 Y 1 27

6 Y 1 6

TOTAL 23 233 SECURITY PROCEDURE

1 Branch is opening and closing are as per bank’s guidelines 3 Y 1 32

2 Y 1 2

3 Branch premises is not being used for any unauthorized activity. 2 Y 1 24

3 Y 1 3

a) All employee related expenditures are entered in the HRMS, as prescribed.b) Whether following HRMS reports are being generated to check discrepancies:1. Monthly absence exception report2. Officiating exception report3. Expenditure reports of Newspaper reimbursement, Petrol Reimbursement to Scale-IV & above officials, Conveyance/petrol reimbursement, Residential phone reimbursement, Washing allowance reimbursement

V - BRANCH MANAGEMENT FUNCTION - B.SECURITY

Collapsible gate and shutters are provided on all entrances and main entrance entry is restricted by channel gate or turnstile gate.

Branch has RCC (Reinforcement Cement Concrete) strong room. or Branch has safe room and safe is embedded in RCC walls

a) Branch has separate Locker room. Cash Safe or Locker Room are segregated by wall partition. (b) Whether Cash Safe is as per latest specification

Branch has proper Cashier Cabin, covered with glass/ wire mesh and automatic night latch.

Gun Licensee is renewed on due date in the name of Incumbent In-charge and names of guard/s are entered as retainers.Next renewal is due on

a) Gun History sheet has been maintained to ascertain the firing/test firing record.Last test firing done on (b) Servicing of guns got done within a year. Last service done on (c) Cartridges have been replaced after expiry. Last date of replacement

(a) The security alarm system is installed and fully functional. (b) If.anti burglary devices are installed with night mode facility, it is fully functional. ORIf integrated alarm system is installed, it is fully functional. (c) Operational guidelines are being followed meticulously

CCTV (wherever applicable) installed / functional and recording for 30 days is carried.

Time lock wherever installed is functional and handling of time lock keys is as per bank’s guidelines.

Armed-guards are posted in the branch, if sanctioned and performance of duties of armed guards is satisfactory

i) Branch is being visited by an officer on Sundays and holidays and record of such visits is being maintained. ii) Branch Officials are visiting BC location as per specified periodicity. Visiters/Bank Officials visit register is being maintained for SSAs. (Financial Inclusion)

a) Handling / control of strong room keys is as per guidelines. (b) Procedure adopted for withdrawal of cash from strong room is as per guidelines.



52 Y 1 2

TOTAL 12 124 FIRE SAFETY

3 14 N BMS- S M 6 24

4 25 N BMS- M M 7 35

5 3

4 N BMS- M H 10 40

6 42 N BMS- M H 10 20

TOTAL 15 119

There are no outstanding observations / irregularities as per Circle’s Security Officer (CSO) Report

Electric load is as per sanction and condition of electrical wiring and accessories appropriate

Proper storage system exists for Record and Stationary is stored properly to avoid fire hazard.

Fire fighting system i.e. proper fire extinguishers including Gas based are available at the branch and special attention is paid for their maintenance.Next refilling is due on

Fire alarm system with adequate number of smoke detectors is functional, wherever installed

INTERNAL REGULAR AUDIT BO:


FSI INDEX REPORTRisk Parameter Out of Col. 4 FSI Cate-gory

ZTL Items

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

Exercise of loaning Power 60 60 0 /1 0 0 0.0 Low

Pre sanction Appraisal 200 200 2, 3 0 /1 2 /4 22 11.0 Low

40 40 0 /1 0 0.0 Low

Mortgages 120 120 0 /2 0 0 0.0 Low

Post Sanction Follow up 160 160 6 1 /1 0 /2 12 7.5 Low

Bills Purchased 40 40 0 /1 0 0.0 Low

Balancing 100 100 0 /2 0 0.0 Low

Cash Management 50 50 0 /2 0 0.0 Low

Remittance in Transit 50 50 0 /1 0 0.0 Low

110 110 0 /1 0 /2 0 0.0 Low

Suspense Account 40 40 0 /2 0 0.0 Low

Sundry Account 20 20 0 /1 0 0.0 Low

170 170 0 /2 0 /1 0 0.0 Low

540 540 , , 0 /2 0 /7 0 0.0 Low

200 200 0 /1 0 /4 0 0.0 Low

130 130 0 /1 0 /2 0 0.0 Low

Physical & Logical Control 120 120 0 /2 0 0.0 Low

40 40 0 /1 0 0.0 Low

100 100 0 /1 0 0.0 Low

50 50 0 /1 0 0.0 Low

TOTAL 2340 2340 1 /12 2 /37 34 1.5 Low

% age Score Upto 30 % > 30 % - 50 % > 50%

FSI Category Low Medium High

Overall FSI Category : Low

Max. Risk Score of ZTL/ FSI

Items

Appl. Risk Score

Sl. Number of Parameter as per RBIA Format relating to ZTL/FSI Items (only those

items to be indicated, where Irregularities are observed)

Sum Total of Their Deviation Score (i.e. Col. 9 of

RBIA Format)

FSI Index

(%age score)

(col. 6x100) col.3

Other FSI Items

Documentation & Creation of Charge

Bankers Account and Clearing Imprest Account

Checking of Reports and Morning Checking

Opening of Accounts and KYC Norms

Conduct & Maintenance of Accounts and Records

Security Forms Inventory Management

Maintenance & Business continuity Control

Submission of Crucial Returns

Rotation of Duties & Placement of Staff

INTERNAL REGULAR AUDIT BO:


(Aggregation of Business Risk and Control Risk)

Particulars Business Risk Control RiskMaximum Marks 1000 1000Applicable Mark 1000 972Marks Obtained 162 167

16.2 17.18Risk Category LOW LOWDirection of Risk*

Sr.NoBusiness Risk Control Risk

Risk Score Risk category Risk Score Risk category1 UP To 30% LOW RISK UP To 30% LOW RISK2 >30% TO 60% MEDIUM RISK >30% TO 50% MEDIUM RISK3 MORE THAN 60% HIGH RISK MORE THAN 50% HIGH RISK

BUSINESS RISK H H VH EHM M H VHL L M H

L M HCONTROL RISK

Overall Risk of Branch LOW

Overall Direction of Risk*

Previ. Inspection Curr. Inspection

BUSINESS RISKCONTROL RISK

OVERALL 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:-

Risk score (Marks Obtained as %age of

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

*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

Direction of Risk (↔) (↑)

(↓)Applicable Marks

Marks Obtained

% Risk Score

Applicable Marks

Marks Obtained

% Risk Score

33

document.xlsx Surinder Malhotra (Int. Sr.Auditor)

OVERALL RISK

103


CREDIT FUNCTIONS

(Excluding staff loans and loans against deposit etc.)

EXERCISE OF LOANING POWERS Annx No

a) b)

c)

d) Any other

2 PRE-SANCTION APPRAISAL√ a) CR-

b)

c)

d) CRs of borrowers/guarantors not compiled in _______ accounts. e)

f) Any other

DOCUMENTATION AND CREATION OF CHARGE √ a) CR-

b)

c)

d)

√ e) CR-

f) Joint registration in vehicle loans not done in a/cs with o/s of Rs. Lacs.

g) Any other

4 POST-SANCTION FOLLOW UP a)

b)

c)

1) Total no. of loan accounts is with aggregate of Rs. lac.

2) Out of which NPA a/c are with Rs. lac. 3) The advances (excluding staff loans and loans against dep.etc.) increased by Rs. ______ lac i.e. _____%. 1.

Loaning power exceeded by Rs. Lac in a/cs.Overdrawings allowed beyond discretionary powers to the tune of Rs.____ in __________ accountsClean overdrafts have been allowed in ____________ accounts exceeding vested powers / in violation of HO guidelines.

Responsible: S/Sh _______________________ Desi _____________

KYC norms not adhered to in ______ accounts with outstanding of Rs._______ Lac.Genuineness/non encumbrance of title deeds not checked in accounts with outstanding of Rs. Lacs.Proper scrutiny of financial data and assessment of PBF not done in _______ accounts.

Scrutiny of past conduct of a/cs of borrowers/guarantors not done in ________ a/cs.

Responsible: S/Sh _______________________ Desi _____________ 3.

All necessary documents have not been obtained / executed properly in a/cs with outstanding of Rs. Lacs.Equitable / Regular mortgage of IPs have not been created as per norms in _____ accounts with outstanding of Rs.________Lacs and related papers, title deeds have not been obtained and filed properly in _____ accounts with outstanding of Rs._________Lac.

Mutation of charge not done in accounts with outstanding of Rs. Lac.Bank’s charge not registered with Registrar of Companies within stipulated time in ________ accounts with outstanding of Rs.___________Lacs.

Consent clause in terms of CIBIL not obtained in _____ a/cs with o/s of Rs.______ Lacs


Important terms and conditions of sanction not complied in a/cs with outstanding of Rs. Lacs.Working capital / limit against IPs have not been renewed in accounts with outstanding of Rs. Lacs.CRs have not been renewed in accounts with outstanding of Rs. Lacs.

104


4

d)

√ e) End-use is not verified in accounts with outstanding of Rs. Lacs. CR-

f)

g) Insurance is not available in a/cs with outstanding of Rs. Lacs.

h) Limitation is not available in a/cs with outstanding of Rs. Lacs.

√ i) Recovery % as at _________ is only ________%, which is not satisfactory. CR-

√ j) CR-

k) Any other

ACCEPTANCE, ENDORSEMENT AND OTHER OBLIGATIONS a)

b)

c) Any other

6 BILLS PURCHASED / DISCOUNTED a) Irregularities observed in ______bills purchased/discounted of Rs._______.

b) _________IDDs over detained of Rs._______without sender’s consent.

c) Any other

7 FOREX CREDIT a) Irregularities observed in ___ export bills purchased/discounted of Rs._____.

b) Irregularities observed in ______import bills of Rs._______. c)

d) Other irregularities observed in forex business in ____ cases of Rs._____

e) Any other

8 NPA MANAGEMENT√ a) Irregularities observed in NPA identification in a/cs of Rs. Lacs. CR-√ b) There is erosion in securities charged to the Bank in _______ NPA a/cs. CR-√ c) CR-

d) Reduction of NPA budget achieved/not achieved.e) Any other

9 OTHER OBSERVATIONS a)

b) Guidelines in respect of exposure to sensitive sector not observed. c) Any other

Sales proceeds have not been routed in accounts with outstanding of Rs. Lacs.

Stocks / securities not being checked as per sanction / guidelines in ________ accounts with outstanding of Rs.___________Lacs.

Prompt action is taken / not taken in case of persisting irregular accounts/potential NPAs.


5.LGs / LCs not issued as per guidelines in _____ accounts with outstanding of Rs._______.LCs opened despite two consecutive devolvements in _____ accounts with outstanding of Rs.________ Lacs without permission of competent authority.



Record of forex rates received from FEO / SPMO and reportings to them not maintained in _______ cases.


NPA accounts have increased/decreased by Rs._________ Lacs (______% of NPA to total advances ___________).


SRM records / vital details not properly entered and updated in a/cs.

105


9


106


NON-CREDIT FUNCTIONS12 Daily Balance Register is Register is properly maintained / not maintained.3 Morning checking is being done / not done.4 AML/KYC norms are being followed/not followed

1 BALANCING a) The balances of _______General ledger heads are not tallied since ________.

b) O/s of overdue term deposits, RD etc. not reconciled since _________. c) Any other

2 CASH MANAGEMENTa)

b)

√ c) Clean note policy is not being observed. NCR-d)

3 REMITTANCE IN TRANSIT a) Prescribed safeguards not observed in remittance of cash.

b)

4 BANKER'S ACCOUNT AND CLEARING IMPREST ACCOUNT a) Clearing Imprest a/c entries are not tallied/reconciled since ________.

b) Banker account entries are not tallied / reconciled since _______. c)

5 SUSPENSE ACCOUNT a)

b) ________ unauthorised debits of Rs.____________ observed. c)

d) Any other

6 a)

b) Original vouchers of outstanding entries kept/not kept in separate file. c) _____ proxy accounts entries of Rs._______ outstanding since _______.

d) Any other

The house-keeping of the branch has improved / deteriorated as compared to previous Insp Rep.


Cash in hand as on date of inspection is checked physically and it tallies with Cash Memo Register.Shortage of cash, security forms, traveller cheques found during inspection is given hereunder:-

Any otherResponsible: S/Sh _______________________ Desi _____________

Any other Responsible: S/Sh _______________________ Desi _____________


46 entries of adjustable nature aggregating Rs. are outstanding in Suspense A/c over 15 days without proper follow up for their adjustment.

_____ proxy accounts entries of Rs._______ outstanding since _______.

Responsible: S/Sh _______________________ Desi _____________SUNDRIES ACCOUNTProper follow-up is not being made for adjustment of entries. Outstanding entries increased/decreased by entries of Rs. .


107


7 INWARD REMITTANCES AND IMPREST ACCOUNTS a)

b) Imprest accounts of extension counters are not tallied/reconciled since ___

c) Accounts of administrative offices are not tallied / reconciled since _______.

d) Proper follow-up of missing/repeated serial numbers of Drafts/TPOs not done.

e) Any other

8 OUTWARD REMITTANCESa)

b) Any other

9 CHECKING OF REPORTS / REGISTERS a)

b)

c) Provision on deposits is short by Rs._________. d) Any other

OPENING OF DEPOSIT A/CS WITH KYC NORMS a)

b) KYC norms not observed in accounts. c) d) Introduction not obtained in __________ accounts. e) Independent verification of address not done in _______ accounts. f) Form 60 / 61 not obtained in ________ accounts. g) Photographs / signatures not uploaded in the system in ______ accounts.

h) Any other

11 a) Anti-money Laundering guidelines are not being followed. b) PNB-119 not obtained in __________ cases. c) d)

e) Any other

12 SECURITY FORMS INVENTORY MANAGEMENT a) Security forms not checked on receipt from Printing & Stationery Deptt.

b) Monthly checking of security forms not done since ____________. c)

d) Any other

Proper follow-up is not being made for adjustment of entries. Outstanding entries increased/decreased by _______ entries of Rs.___________.


Guidelines regarding punching of drafts and affixing of cello-tapes on Drafts/ TPOs/FDRs not done.


All print-outs / records are checked / not checked and signed by authorised officer.Checking of 09 Reports (under Daily Monitoring System) is not done on _____ days.

Responsible: S/Sh _______________________ Desi _____________ 10

Total number of accounts opened since last IR

AOFs not held in accounts.

Responsible: S/Sh _______________________ Desi _____________CONDUCT & MAINTENANCE OF ACCOUNTS & RECORDS

______ accounts are not transferred to Inoperative category.____ no. of vouchers not tallied, stitched and signed by custodian in Voucher Register.


Daily In and Out Register/computer record (PNB 862) not maintained and checked.


108


13 BILLS FOR COLLECTION, DDs RECEIVABLE AND PARCELS a) Follow-up of overdue outstanding bills not done. b)

c)

14 CONDUCT OF GOVT. BUSINESSa)

b) _______ life certificates not obtained in Pension accounts. c) Any other

15SAFE DEPOSIT VAULT & ARTICLES / DOCUMENTS IN SAFE CUSTODY

a) Rent on Lockers overdue Rs.________. b) c) Locks are not changed in surrendered lockers as prescribed.

d) Operations in ______ lockers allowed where rent is in arrear.e)

16 a) Complaints are not redressed within reasonable time.

b) Time norms for discharging different jobs not followed. c)

COMPUTER FUNCTIONS1 ENVIRONMENTAL CONTROLS

a)

b)

c)

2 PHYSICAL CONTROLS a) Proper record of creation/deletion of User IDs not maintained.

b) PCs/Printers are not regularly cleaned and covered when not in use.

√ c) COMP-

d)

3 PASSWORD MANAGEMENT a)

b) Secrecy of Password is not maintained.

c)

d) Any other

_________IDBC over detained of Rs._______ without senders consent.Any other Responsible: S/Sh _______________________ Desi _____________

The data is not tallied and amount is not being remitted to Focal point on the same day.


_______ lease deeds of lockers not available.

Any other Responsible: S/Sh _______________________ Desi _____________CUSTOMER SERVICE


Location of computers is not safe and free from hazards like water seepage, fire etc. UPS is used for other utilities also and not only for computer system.Air conditioning, ventilation and humidity controls are not in place for Servers/ critical equipments/ATM/UPS etc.Responsible: S/Sh _______________________ Desi _____________

Critical equipments (router/switch/hub) are not placed in least accessible area under lock and key. Any other Responsible: S/Sh _______________________ Desi _____________

Separate User ID is not used for performing DBA functions & routine financial transactions.

Password of System Administrator is not kept under sealed cover / dual custody.


109


4 MAINTENANCE & BUSINESS CONTINUITY CONTROLS a)

b)

c) BCP guidelines are not followed properly.

d) Old data not stored properly.

e) Fall back report on hard disk is not taken, as prescribed.

f)

5 NETWORKING CONTROLS a) Responsibility and liability of network vendors is not defined in AMC.

√ b) Internet access is given/ not given to PCs / system having critical data. COMP-

c) Any other

6 OPERATIONAL CONTROLS a)

b)

c)

d)

e) Interest success and failure reports are not generated / checked.

f)

g)

h) Any other

COMPLIANCE FUNCTIONS1 CLOSURE OF PREVIOUS IR

√ a) COL-

b)

c) Legal Compliance Certificate not submitted since _________.

d)

2 SUBMISSION OF CRUCIAL RETURNS a) Statement Register for Control returns not maintained.

b) Control returns, namely __________________ not submitted in time.

c) TDS return not properly prepared and submitted in time.

d)

e)

Vendor is allowed/not allowed to perform routine jobs & his activities are not monitored. Copy of AMC / SLA is not held.

Any other



Duties of IT functions have not been allotted through Office Order.Control reports like exceptional transactions, audit trail, GL affected balances etc. are not being generated and scrutinized by the appropriate officials.

Reports of Non-financial transactions e.g. limit enhancement / reduction, DP maintenance etc. are not generated and checked.DBA of Branch does not ensure enabling/disabling and creation/deletion of users on daily basis.

Controls in respect of Tele Banking, Remote access, SWIFT, SFMS, RTGS etc. are not being exercised. Prescribed registers e.g. Checksum register, Machine breakdown register, Media stock movement register etc. are not being maintained & checked.


The previous inspection report dated ___________ not closed within stipulated time. Daily / monthly / quarterly audit reports are not attended to.


MMC not correctly compiled and submitted in time.Any other Responsible: S/Sh _______________________ Desi _____________

110


3 COMMUNICATION AND RESPONSE a) Despatch register is not properly maintained.

b) Dak receipt and disposal register is not properly maintained.

c) Correspondence from HO/ZO/RO not attended to promptly.

d)

4 REDRESSAL OF COMPLAINTSa) Customer Service Committees are not constituted and functioning.b) Complaint register is not maintained.c) Complaints are not redressed to the satisfaction of customers in time.d) Any other

5 REGULATORY COMPLIANCE a) There are violations of statutory guidelines/directives.

b) Ghosh/Jilani/Mitra Committee guidelines not complied with.

c) Any other

BRANCH MANAGEMENT (GENERAL)1 JOB KNOWLEDGE OF STAFF

a) Staff, especially on loans seat, does not have requisite/adequate knowledge.

b)

c) Any other

2 UP-KEEP OF BRANCH PREMISES a) SFF items are not serially marked & unserviceable items not disposed off.

√ b) BM-

c) Lease-deed not available / overdue for renewal.

d)

3 EXPENDITURES a)

b) Any other

4 PUNCTUALITY / DISCIPLINE a) Branch is not opened in time and prescribed public hours not observed.

b) Staff members are attending office late and leaving early.

c) Leave record is not properly maintained.

d) Prompt/good customer service not ensured.e)

5 ROTATION OF DUTIES & PLACEMENT OF STAFF a) Rotation of duties not done as prescribed.

b)

c) Any other




Staff is not adequately trained and does not have knowledge of computers system.


Ambience not good and cleanliness not maintained.


Financial powers have been exceeded/confirmation not obtained in various heads as under:

a. __________________________


Any otherResponsible: S/Sh _______________________ Desi _____________

Staff members are not involved for improving customer service and achievement of budgets.

111


5

BRANCH MANAGEMENT (SECURITY)1 SECURITY INFRASTRUCTURE

a) Collapsible gate and shutters are not provided on all entrances.

b) Windows/ventilators etc. do not have strong grills/iron bars

c) Branch safe is not embedded in RCC walls

√ d) Cash safe and locker room are not segregated by wall partition. BMS-

e) Any other

2 SECURITY MANPOWERa) Performance of duties of armed guards is not satisfactoryb) Any other

3 SECURITY EQUIPMENTS a)

b) The security alarm system not working.

c) Any other

4 SECURITY PROCEDURE a) Branch is not opening and closing as per bank’s guidelines

b) Handling/control of strong room keys is not as per guidelines.

c)

d) Any other

5 FIRE SAFETY√ a) BMS-

√ b) Proper storage system does not exist for record and stationery. BMS-

√ c) Adequate fire fighting system is not available at the branch. BMS-

d) Any other




Gun License is not renewed on due date in the name of IncumbentIncharge as retainer.


Procedure adopted for withdrawal of cash from strong room is not as per guidelines.


Electric load is not as per sanction and condition of electrical wiring and accessories is not appropriate.


1. Identification of Potential Risks :

2. Comments on Concentration Risk in respect of:

b) Borrower (with largest Exposure) :

c) Depositor (with highest Deposit) :

3. Suggestions for Mitigation of High & Very High Risks

4. Suggestions for Management :

AUDITOR

SWOT ANALYSIS1. 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 RISKCHECK-LISTThe check-list for different areas is given below. The lists are illustrative and not exhaustive. Thelists have been provided to enable the inspecting official to assess risk category and allocatingmarks against these items. Wherever necessary, the assessments made as per the check-listsare to be substantiated with facts & figures.2.10 Outsourcing / Other Service Providers1. Whether only those services/activities have been outsourced which have beenprescribed/allowed by the Bank/Competent Authority?YES/NO2. Whether credibility and capability of outsourced agency has been ensured? YES/NO3. Whether a proper watch and control is exercised on outsourced activity? YES/NO4. Whether safeguards have been taken against misuse of Bank's data/informationby the outsourced agency?YES/NO5. Whether over-dependence on outsourced agency has been avoided and analternative plan is in place?YES/NO6. Whether the database is not exposed to AMC vendor during maintenance/repairof the system?YES/NO7. Whether in case of outsourcing of Canteen services in Branch, police verificationof the Contractor and his staff got done/independent verification of antecedents ofContractor done?YES/NO8. Whether in case of outsourcing of despatch of outward Dak through Courier,access allowed only to authorised employees of the company with properidentification, who are not permitted to enter Dak?YES/NO9. In case of outsourcing of Concurrent Audit function, the guidelines prescribed byI&AD, HO from time to time are adhered.YES/No3.14 Reduction in Controllable Expenses1. Whether expenditures are incurred under various heads within vested powers? YES/NO2. Whether proper record of expenditure under various heads maintained? YES/NO3. Whether austerity measures put in place and conscious efforts made to controlavoidable expenditure?YES/NO4. Whether proper control is exercised for expenditure in respect of Stationery itemspurchased locally as well as TA bill & local conveyance expenditure?YES/NO5. Whether it is ensured that only the required lights, fans etc. are kept on duringnon-public dealing hours?YES/NO6. Whether the prescribed expenditure statements submitted timely to ControllingOffice?YES/NO37 RBIA FORMAT- Non-Specialized Branches (version 2.03-Revised_Final)

CONTROL RISKCHECK-LISTI. CREDIT FUNCTIONSThe check-lists for different areas are given below. The lists are illustrative and not exhaustive. The listshave been provided to enable the inspecting official to assess risk category and allocating marks againstthese items. The irregularities observed as per the check-lists are to be covered under the annexuresenclosed for that item.2. 7 Pre Sanction Appraisal1. Prescribed guidelines relating to the score model “PNB SCORE SME” have been complied with, Interms of MSME Division Circular no. 12 dated 20.07.2011.2. Prescribed guidelines related to assigning the Score card Id obtained from “PNB SCOREMODELS”, in “Free Text 6” ( have been mandatory) field in ‘V-MIS Details’ in terms of ITD/CBS Cir.No. 92/2011 dated 31.10.2011, 96/11 dated 03.12.2011 & 39/2012 dated 12.07.2012 and MSMEDivision circular No.05/2012 dated 02.05.2012 have been complied with.3. ITD has also customized the three monitoring reports in the system (vide circular no. ITD/CBS Cir.No. 39/12 & 53/12for the existing accounts viz.i) PNB RPT -3/74a: list of SME loan account with bank score card id in free_text_6.ii) PNB RPT- 3/74b: list of SME loan account with invalid score card id in free_text_6.iii) PNB RPT- 3/74c: list of SME loan account with valid score card id in free_text_6.5.1 Terms and conditions of sanction1. 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.5.9 End use verification1. 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.6. Certificates are obtained from the borrowers, particularly in case of Corporate Loans, WorkingCapital Finance, Project Finance, Short Term Loans etc., certifying that the funds have been usedfor the purpose for which these were obtained and are not diverted to Capital Market/some otheruse.5.10 Checking of stocks1. 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 hasentered the stock statement and verified the correctness of drawing power and (ii) who hasphysically inspected verified the stocks.5. Please annex details of securities due for verification and securities verified during the reviewperiod.6. List of sundry debtor and creditors is being submitted and analysed alongwith the stock statementwherever applicable.7. Number and amount of securities/stock missing. Give details alongwith the position as per lastinspection.8. Any other irregularity observed.38 RBIA FORMAT- Non-Specialized Branches (version 2.03-Revised_Final)

5.14 Limitation and BC letters1. Limitation Register has been maintained properly and updated.2. Position of limitation expiring within 12 months is monitored by the branch.3. BC letters have been adequately & properly 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.5.15 Advances against Deposits/NSCs/KVPs/LIPs/Jewellery etcAdvance against Deposit1. 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 customerslike minors, illiterate persons etc.Advance against NSCs/KVPs/Govt Securities1. Genuineness of Govt securities has been verified.2. Lien has been noted with Post Office/Govt. Deptt. by sending our own staff or through registeredpost .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.Advance against Life Iinsurance Policies1. 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.Advances against Shares/Debentures/Units of Mutual Funds1. 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 wellCollateral 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.Advances against Gold / Silver Jewellery & Ornaments1. 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.39 RBIA FORMAT- Non-Specialized Branches (version 2.03-Revised_Final)5.16 Advances to Staff under Staff Welfare Schemes1. 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 perapplicable rules.6.1 Procedural irregularities in LG / LC / SBLC / LOC1. Application form for issuance of LG/LC/SBLC/LOC has been obtained.2. LG/LC/SBLC/LOC 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.7.2 Procedural irregularities in Bills Purchased/Discounted1. 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-LISTThe check-list for different areas is given below. The list is illustrative and not exhaustive. The list has beenprovided 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 thatitem.8.1 Export Crediti) Whether the Branch is properly maintaining GR/PP/SOFTEX/SDF forms after completing requisiteinformation on the reverse of the same at the time of realization of export bills, if not comment. Withdetail 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/SBLC/LOC 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 formonitoring purpose.vii) Whether advance remittances received by the branch towards exports are being monitoredregularly.viii) Confirmation that export bills are not being accepted in respect of caution listed exporters, whichare 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 aftersubmission 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, which40 RBIA FORMAT- Non-Specialized Branches (version 2.03-Revised_Final)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 ofsanction/enhancement, in case of any irregularity, comment.xvi) Whenever new limits are sanctioned or existing limits are enhanced/ reduced/cancel, it should bereported to ECGC on the prescribed format in duplicate and this duplicate copy, duly signed, isreturned 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 onaverage daily product.xviii) Rate of premium should be, as per the rate circulated by IBD, every year effective from 1st July to30th June.xix) Premium on WTPCG is to be debited from exporters account whereas premium on WTPSG is tobe 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 submittedto 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 classificationsub-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) orCaution List. Also, if any of director/partner/ guarantor figure in the list, then without prior approvalof ECGC. Otherwise, such advance is not covered by ECGC.xxiii) Country wise classification by ECGC should be adhered and restricted cover countries exportsshould not be financed, without ECGC prior approval.xxiv) Any extension in due dates beyond 360 days in Pre-shipment & 180 days Post Shipment casesshould not be permitted without ECGC prior approval.xxv) Report of default- Branch should report within one month of recalling the advance or within fourmonths 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 notcovered if prior approval is not obtained.xxvii) All recoveries in any account, subsequent to settlement of claim by the corporation, net of recoveryexpenses, are to be shared between corporation and bank in the ratio in which the loss wasadmitted by the corporation.xxviii) Claims may be lodged with the corporation within 6 months from the date of report of default toECGC.xxix) Whether foreign currency notes/travelers’ cheques towards payment of exports are accepted onlyfrom the overseas buyers during their visit to India; in case of any deficiency, comment.8.2 Import Crediti) Whether the branch is properly maintaining records of A-1, A-2 & A-3. Forms for release of foreignexchange 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 Indianotification 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 fromthe applicants.iv) Custom Bill of Entry has been received, checked and properly filed in all cases as per guidelines.v) Whether LCs/SBLCs/LOCs have been issued as per articles of UCPDC 500.8.3 Other FEX Operationsi) Whether the branch has undertaken foreign exchange transactions with due diligence by ensuringadherence to guidelines pertaining to EXIM Policy, FEMA directive, Anti Money Laundering & KnowYour Customer norms, comments.ii) Whether all crucial returns/statements such as X0S, BEF, STAT-,1 1BS, NRD-CSR, Gold Import, RReturnare correctly compiled and promptly submitted by branches to RBI/their Regional/Zonal Officesetc.iii) Whether the branch while undertaking foreign exchange transaction has indulged in indiscrete use offinancial 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 andother basic details of the transaction in terms of RBI's guidelines.41 RBIA FORMAT- Non-Specialized Branches (version 2.03-Revised_Final)v) Whether applications in respect of Forward Contract booked by the customers have been obtained andsubmitted to the concerned FEO/SPMO.vi) Whether confirmations in respect of Forward Contracts booked by the customers have been obtainedand submitted to the concerned FEO/SPMO.vii) Whether charges in respect of booking/cancellation of forward contracts have been recovered from thecustomer.viii) Whether balance of FCNR Deposit Accounts in Foreign Currency as well as Indian Rupees have beenreconciled with the nodal office FEO. New Delhi.ix) Whether the branch has kept on record on the specimen of draft and specimen signature of authorizedofficials of the EH.x) The period of validity of the draft issued the EH is not in excess of three monthsxi) Verification that no payment other than those specifically permitted as per Foreign Exchange Circularreferred to above have been made from Trade Transaction for the accountxii) Verification that no payment other than those specifically permitted as per Foreign Exchange Circularreferred to above have been made from Trade Transaction for the accountxiii) The designated branch has introduced the prescribed register for recording the details of drafts/chequepaid and the date of claim raised with Account Maintaining Branchxiv) Verify randomly with reference to two drafts per week and indicate the average time gap observed overlast six months between the date of payment of the draft if the designated branch level and the date ofreimbursement by the Account Maintaining Branchxv) Charges Recoverable/Recovered, if anyII. NON CREDIT FUNCTIONSThe check-list for different areas is given below. The list is illustrative and not exhaustive. The list has beenprovided 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 thatitem.2.5 Other Irregularities in Cash Management1. Necessary steps are taken in case of detection of counterfeit/forged currency notes and STR isfiled 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 safeovernight.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 monthlybasis.10. Soiled notes are exchanged as per RBI guidelines.11. Cash Scroll system is being followed in rural and semi urban branches.11.3 Other Irregularities in Conduct & Maintenance of Accounts & Records1. The signatures on requisition slips/request letter are being verified before issuance of chequebooks.2. Separate series of cheque-books with prefix NRE are issued to non-residents (external) accountholder.3. The standing instructions are examined during the month by the Manager/authorized officer toensure regular and timely compliance.4. Token system is followed meticulously.5. The interest is credited regularly on due dates in Special FD A/cs6. 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 themajority attained accounts8. All guidelines observed in holding, preparing and dispatch of pass books/statement of a/cs.*********