COMMENCEMENT OF AUDIT AND INSPECTION

 

Commencement of Audit and Inspection :

Immediately after sending the Commencement Letter to the Head Office, the Inspecting Official shall start Security verification in the following parameters :

 

CASH DEPARTMENT VERIFICATION :

 a)   The very first step would be checking the Physical Cash available in the Bank Branch.  This should be done before commencement of the Cash Hours so that the Customer Service is NOT affected in any case. 

b)  Confirm that the Safe keys are held under Joint Custody and tallies with the entries made in the Key Register.

c)   Arrive at the entire physical cash available at the Bank Branch. This should tally with the Cash Balance Report as at the close of the previous day.  Complete this exercise in the presence of the Cashier or Cash-in-charge and the Officer of the Bank Branch, who is in-charge of the Safe Keys, otherwise called as the “Joint Custodian”.

d)  Differences, if any, should be immediately brought to the notice of the concerned Bank Branch Head / concerned Officials. 

e)   Call for necessary explanation for the differences and verify whether any late payments have been made on the previous working day.  Verify necessary request letters and vouchers for the same.

f)    Ensure that the Duplicate Keys are deposited in another Branch of the Bank at periodical intervals and the same is rotated as per the Head Office Policy.

g)  Confirm that the Branch strictly follows the Security guidelines while handling cash from Safe in and Safe out as per the guidelines of Head Office.

h)  Ascertain that the inter-transfer of Cash is recorded (if cash is handled in more than One Counter at the Branch)in the Cash Transfer Register.

i)     Whether the system generated Cash Scroll reports are signed by both the Cashier(s) and the Custodian on all days.

j)     Check whether excess / shortage of cash is recorded properly in the register and necessary entries have been passed in the system with due knowledge of the authorized officials of the Branch.

k)  Ensure that the Cash is maintained within the Cash Retention limit as per Head Office guidelines and if the balance is exceeded, call for clarifications from the concerned Officer of the Branch and make a note of it in the Report. 

l)     Check whether the Cash Department is provided with necessary machines like Cash Counting Machine, UV Rays machine and Sorting machine and whether they are in working condition.

m)                       Whether the Branch is holding any counterfeit notes and the same has been reported to Higher Office as per guidelines in vouge.

n)  Whether the Branch is exchanging cut/mutilated notes as per Central Bank (RBI) guidelines.

JEWEL LOAN VERIFICATION :

a)     Take a print out of Ledger account pertaining to all categories of Jewel Loan portfolio and conduct a physical verification of Jewel packets held at the Branch.  It should be ensured that the Jewel packets are kept in the Safe and if any deviations are observed, the same should be brought out in the Report and necessary steps to be taken to ensure that the Bank’s interest is safeguarded.

b)     Any difference is observed, the same should be got clarified with the concerned Officials of the Bank Branch. 

c)     In some Banks there is a practice (as per the instructions of Higher Offices) that some of the jewel loan items are scanned for genuineness of the items contained in the packets with the assistance of an Appraiser from another Branch of the Bank.  If any such report is available, the Inspecting Official should go through the same and seek clarifications in case of any irregularities.

d)     The Inspecting Official should conduct the above exercise with the help of an Appraiser from another nearby Branch of the Bank in the presence of an authorized Official of the Branch, the Appraiser of the Branch (which is under Audit) and necessary certificate should be taken from the Appraiser who conducts the verification.  The Certificate should be signed by the Inspecting Official, Appraiser of the Branch (which is under audit), the Branch Head or an authorized Officer of the Branch / Custodian of the jewel packets.