02 July 2012
During statu audit of bank i realised that bank neglect to check the aunthenticity of attachments...exm. Renewal of shop act, cross verification of itr filed simultaneously & financial statements , valid proof existance of busi....which may cause fraud ... When i questione same... They answered ..if repayment is smooth...then this is needless...is it right.?
03 July 2012
Banks generally prescribe the conditions of their sanctioning of loans in their file. It is called as a sanction letter. It is basic for any bank to verify the existence of a shop before sanctioning the loan. It is common sense that in case of illegally occupying a shop, the borrower may land in trouble at any time. With the non existence of a legal shop, what can a bank do? You could have given your observations to the bank or contain it in your audit report for suitable authorities to take necessary action.
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