Mr. Kejariwal had levelled serious charges against HSBC earlier .
Now 3 major private sector Banks ICICI , AXIS & HDFC is stated to have been indulged in money laundering activities . They donot need any branch audit -
What is the Assurance We the Auditors have that the public sector banks will not indulge in such practices ? Worth pondering at this point of time --
Mr. Kejariwal had levelled serious charges against HSBC earlier .
Now 3 major private sector Banks ICICI , AXIS & HDFC is stated to have been indulged in money laundering activities . They donot need any branch audit -
What is the Assurance We the Auditors have that the public sector banks will not indulge in such practices ? Worth pondering at this point of time --
Mr.Hareesh,
your point is correct. RBI informed that due to computerised environment no audit is requried. But now these type of frauds detected in the private sector. RBI must realise and make arrangements for private bank branch audit also.
Dear Mr.Kanagaraj
Earlier our collegue Mr. Satayanayanan had asked in another context
" Who is there to bell the Cat ? " - some of us are busy in centres of excellence -
That question is relevant here also .
Exactley and I agreed with thr context.
Our government is known for for waking up only after the unwanted things happened. IT is not surprising to see these kind of frauds in the private sector banks. The central auditor audits the most of the branches and most of the branches are unaudited by the out side auditors. Unless any thing happens in the nationalised banks like this, they will not realise the value of the branch statutory audit. I am not saying this becuase we are loosing the audit opprtunities I am very much concerned that our values are not properly highlighted and educated to the govt by our insititute.
Bank,s Management is under severe pressure this year as magnitude of NPA has reached unprecedented levels . Economy is not doing well , & business houses find it difficullt to honour their financial obligations.
Career consciuos officers of Banks had started there work well in advance -- I had been witness to a small case where crores of Rupees were advanced as Temporary over draft to a seemingly Performing account, where from it was loaned to a borrower who used the proceeds to dress his account , which was on the verge of being categorised as Non Performing.
Can Core banking capture these sort of manipulations ?
CBS is mainly for speedy disposal of works. It noway a mechanism to curb the frauds
CBS system cannot detect manupulated entries by bankers.todays Bankers can make transfer entries from one account to another from escaping its NPA.Bankers are fianancing more and more advances,whether borrower is genuine or not ,whether banker has checked all about brrower or not
Can CBS check ???????
Above all previous comments are correct and we fully agreed CBS is not an substitiute of Branch auditor.
Before some days i talked with one Branch manager his wording was as below
"Yaar hume apne internal auditors se itna dar nahin lagta jitna SBA se lagta hai" (Moral Pressure)
Dear friends,
There is no use in ventilating our feelings here. Having faith on our insitute is nothing but waste. `What we have to do next?` that is the point to ponder. Here after in my view, we have to get the help of politicians like MPs. We can educate them what is going on in the banks and why the audit is necessary there. We can get collective support from our member in our respective city and can go and meet the MPs. So that, atleast next year, we can rectify the mistakes done by our CC & RC members.
I welcome any other suggestion.
It is fully agreed that there is no point in ventilating our feelings .
We have faith in ourselves
We have faith in each other
We all constitute our Institutte
Root cause is the rotten politics prevailing in our country
Let this profession we pursue be the noblest
We Branch Auditors need to be very cautious on Intra day TODs or TODs for a very short period say up to 4-5 days . This has been one of the widely used means to dress NPA a/cs . We may not find even a request letter from the borrower to whom such TODs are granted .
1) A request letter from borrower clearly stating his need for funds & the amount needed- period for which such TOD is needed - means of repayment ---- Process of such request letter within the Bank and sanction by the appropriate authority with proper notes etc would be examined
We have witnessed the ordeal that a genuine costomer had to undergo in getting a facility or an enhancement of limit from a PSU Bank - These procedures should equally apply to such TODs
Dear All
Bankwise list of Auditors for 2012-13 is available now
Go to
https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=1965
WISH YOU ALL THE BEST
Hello All
I FINISHED 2 BRANCHES OF CANARA BANK
MOC COULD HAVE BEEN GIVEN ( 240 LAKHS ) FOR NOT REVIEWING OR RENEWING THE LIMITS WITHIN 90 DAYS OF EXPIRY
HOWEVER RENEWAL WAS UNDER PROCESS AND OBTAINED A DECLARATION THAT RENEWAL WHEN MADE WOULD BE WITH RETROSPECTIVE EFFECT .
EAGER TO KNOW HOW ALL OF YOU ARE DOING -
CAclubindia
