KARNATAKA VIKAS GRAMEENA BANK

HEAD OFFICE DHARWAD

CONCURRENT AUDIT REPORT

Review Period: September 2024 From 01/09/2024 to 30/09/2024

Date Of the Audit: From: 04/10/2024 To: 05/10/2024
Branch Profile
Name of Branch MAIN BRANCH BELAGAVI-Code 2202
Regional Office BELAGAVI
Branch under Concurrent Audit since October 2015
Name of the Branch Head S. A. Mhaisalkar
Designation and Scale of Branch Chief Manager and Branch Scale IV

2. Business Profile of the Branch- As on last working day

(Amount in lakh)
Particulars March-Year end 2024 Current month September
2024
Total Deposits 20322.95 18099.67
Low Cost Deposits 5080.35 5422.32
Total Advances 4658.21 4755.10
Non-Performing Assets 1367.58 921.73
Total Income 863.10 211.17
Total Expenditure 1489.64 485.52

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 Checklist Description Observations
CASH and SECURITY:
1 Whether surprise verification of cash is done by the Concurrent Auditor? And Surprise verification of closing cash is
physical cash is tallied with system balance (day book balance) and Cash done by us on 04/10/2024 and physical
Register is signed by the joint custodians cash balance of Rs. 11,34,134.00 which
is tallied with system balance.

Cash Register is signed by the joint

custodians.
2 Whether surprise verification of cash is done at ATM by the Concurrent Physical verification of cash at ATM is
Auditor? And physical cash is tallied with system balance (day book balance) not possible, Due to ATM is under
repair.
3 Whether branch is adhering to the clean note policy and all packets were Yes, bank following norms of clean note
having paper banding only with Bank's Label, branch stamp, date stamp and policy but not followed system of paper
Teller/Officer signature? banding only with Bank's Label, branch
stamp, date stamp and Teller/Officer
signature.
4 Whether notes are sorted into issuable and non-issuable notes? Yes, branch has sorted issuable and non-
issuable notes.
5 Concurrent Auditor has to verify: i) Daily cash transactions, particularly any Yes, Surprise verification of cash by an
abnormal receipts and payments, ii) Whether Surprise verification of cash by officer other than the joint custodian
an officer other than the joint custodian done or not? done on 17-08-2024.
6 Whether cash is held under dual custody and signatures of dual custodians Yes, maintained under dual custody and
obtained in records? signatures of dual custodians obtained
in records.
7 Whether Double lock keys are kept with authorized officials only and proper Yes, Double lock keys are kept with 2
records is maintained while handing over the keys to other officials? authorized officials
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 1) Akhilesh kudari
2) Sambram Naik
Key register is maintained
8 Concurrent Auditor has to verify whether counterfeit note reporting was No such cases
done as per Norms
9 Whether Security Alarm / CCTV are in working condition? And Whether back Yes, back up of 90 days available in
up of 90 days available in respect of CCTV? respect of CCTV.
10 Whether fire extinguishers are refilled on due dates and are place properly? Yes, Date of expiry is on 01/01/2025
11 Whether physical stock of Security Stationery is in agreement with Security Physical stock of Security Stationery is in
Item Register? And whether they are kept under dual custody? agreement with Security Item Register
maintained, but not kept under dual
custody.
12 Whether physical verification of GOLD Loan packets and tallying with Security Verification Date 05/10/2024
register ensured? physical verification of Jewel packets
452
as per security register 452
Difference 0
13 Date of verifications of Vault Cash & Single lock cash by the auditor & Cash verified on 04/10/2024 . Rs,
Discrepancies, if any 11,34,134.00
14 Date of verification of ATM cash attached to the branch by the Auditor & Physical verification of cash at ATM is
discrepancies, if any not possible, Due to ATM is under
repair.
15 Comments on Safe custody of securities, safe deposit lockers. All securities kept in Safe custody
Issued
Total Staff Public Vacant
Small 40 2 38 0
Medium 4 1 3 0
Large 2 0 2 0
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 Total 46 3 43 0
16 Date of balancing of Security/ Stationery items Tallied as on 30-09-2024
17 Safe custody Articles held at branch and Date of balancing Safe custody Articles held at branch are
balancing periodically it is tallied as on
30-09-2024.
18 Rent arrears of Safe deposit lockers, if any No Defects in safe locker agreements
found
19 Defects in safe locker agreements No Defects in safe locker agreements
20 Whether the keys of the vacant lockers are under dual control & tallying with No vacant lockers during our period of
vacant lockers? audit.
21 Advance rent held as term deposit (whether renewed) Yes, Advance rent held at deposit
All FD Renewed
22 Whether any locker operation is allowed in case of default in the payment of Verified No such cases fond
rent? IO to verify and comment. (Note: Operation not to be allowed till the
arrears are cleared)
23 Whether the Branch is providing the following services to the public and i. Yes, branch is issuing fresh / good
adhering to RBI guidelines: i. Issuing fresh / good quality notes and coins of quality notes and coins of all
all denominations ii. Exchanging soiled / mutilated / defective notes and iii. denominations
Accepting coins and notes either for transactions or exchange IO to verify and ii. Exchanging soiled / mutilated /
comment. defective notes is carried out by branch.
iii. Accepting coins and notes either for
transactions or exchange IO not in
practice
24 Whether branch is following guidelines while making inward/outward cash Yes, branch is following guidelines while
remittance? making inward/outward cash
remittance.
25 Whether remittance register is properly maintained and updated? Cash remittance register maintained &

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 updated properly.
26 Whether daily cash paid vouchers are stitched & preserved in dual lock Yes, stitched, but not preserved in dual
lock.
27 Whether stock of tokens is maintained in stock register? Loss tokens, if any Token Stock register not Maintained.
and action taken
28 Review and Reconciliation of Bank account. Up to which date accounts are Name of Bank GL B/S Bank B/s
reconciled? Long pending entries with date to be reported Canara Bank
Balance As per legder Rs: 8,229.00
Balance As per Bank statement Rs:
8,229

TAX MATTERS
TDS Remittance / Filing Returns:
Yes. TDS in case of interest on
Whether TDS in case of interest on deposits & others is calculated as per provisions of deposits & others is calculated
1 IT Act and remitted on time and return filed in time. Observations : as per provision of IT Act.
Yes 15G/H uploaded in time RO
2 Whether uploading of Form 15G/H is done within the due date. Observations: level

DEPOSITS:
Branch has generally complied
with KYC/AML norms except
cases Reported in Annexure vii,
1 Compliance to KYC/AML guidelines on DEPOSITS if any.

2 Checked all the deposit accounts opened during the Month and risk profile is updated Yes, checked all the deposits.

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 Whether any Accounts opened and closed within a short span of time? Deviations, if
3 any No such cases found
No. of Observations in respect of KYC compliance pending rectification at the end of
4 the Month No such cases found

Whether all the KYC details are appropriately fed in CBS In respect of accounts all KYC details are appropriately
5 opened during the month as above. If No, Observations fed in CBS up to Dated
No, pending signature scanning
6 Whether signature scanning is pending? (inclusive of SB/ CA/OD/OCC accounts) in SB/CA /OD/OCC accounts.

7 Updated up to 30/09/2024
No. of accounts where signature scanning is pending (inclusive of old accounts) scanned
8 Whether any abnormal transactions in reactivated Accounts to be comment upon No such cases found

Yes, generally while closing

Whether deposit receipts are cancelled & used as debit vouchers for repayment of deposits branch has attached
term deposit accounts while closing the term deposit accounts (including matured FD receipts to Debit voucher
9 deposits). Observations: slips.

10 Whether ND agents are uploading & downloading the collections daily? Observations: No such cases found.

Account Opening
1 Whether prescribed Account Opening Form is obtained in all cases yes

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 Whether CIF is complete/duly filled up like, a) CIF signed by depositor, b) Risk
Categorization done, c)Threshold Limit fixed, d) Nomination opted and Registered (if
not opted, depositor has to specify the same and sign), e) AOF signed by branch
official, f) Specimen signature card obtained, g) Operational instructions obtained for
2 Joint/Other accounts etc. yes
3 Whether nomination details are updated in CBS yes
4 Whether Recent photographs obtained? yes
5 Whether masking of first 8 digits of Aadhar number is done? yes
Prescribed proof of identity, proof of address, PAN card copy/Form 60/GIR etc. of the
applicant/s obtained and verified with the originals and recorded as verified with
originals on the copies held, signed by the Bank Officials along with the date. (For
6 SHG, individual member details to be obtained as per CIR:62/2018). Yes
7 Whether letter is sent to the new customer to verify genuineness of the address No
Yes, obtained wherever
8 Either a copy of PAN Card or Form No.60 is obtained wherever applicable. required.
Certified copies of Constitution, Resolution, Bye-laws in respect of No such accounts are opened
9 Club/Association/Society/Trust as applicable are obtained. during this month
Copy of registration certificate of partnership / copy of certificate of registration of No such accounts are opened
10 trust as applicable is obtained during this month
In case of Company accounts, whether Certified copies of Memorandum/Articles of
Association/Resolution/ Certification of incorporation (whichever is applicable) is
obtained after verifying with originals? Whether Genuineness of the company is
ascertained by verification of the Corporate Affairs Ministry website? Whether copy No such accounts are opened
11 of CIRLIC report is preserved? during this month

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 In the case of Current Account, details of dealings with other Banks are obtained.
Whether CRILIC data extracted before opening Current Account / permission from No such accounts are opened
12 Regional Office is obtained? during this month
No case of accounts opened in anonymous or fictitious / benami name/es, banned
13 individuals / organizations is noticed No such cases found
Before converting inoperative account into operative account, whether all KYC no such accounts are
14 guidelines are followed/KYC documents obtained. converting during this month
15 Whether any abnormal transactions in reactivated Accounts to be comment upon No such cases found
Transactions are monitored to spot suspicious transactions and in case such
16 transactions are identified they are promptly reported to No such cases found
17 Accounts closed within 6 months of opening are monitored from AML angle No such cases found
STR alerts reported under AML package are attended to by the Branch on day to day
basis. Risk categorization and fixing of threshold limits at the time of opening the
18 accounts are adhered to. NIL
Whether all existing accounts are risk categorized as per Money Laundering Risk (viz
19 High/Medium/Low) Yes System based
Whether review of risk categorization of each customer carried out every six months
20 (i.e. Sep & March) Automatically done by system

Beneficial Owners: Whether verification of legal status of the legal person through
21 proper and relevant documents done yes
There is Two case of Death
Settlement of claims of deceased customers and payment of TDRs against lost claim of SB A/c amounting to
receipts and obtention of indemnities, etc. To check revival of dormant accounts and Rs.84,322.00 during the month
22 accounts with minimum activities of September2024.

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 Whether branch obtains PAN/GIR number: For time deposits exceeding Rs50000/- Yes branch obtained PAN/GIR
and Any cash deposit aggregating Rs. 50000/- in any day. If any deviation/non- number: For time deposits
23 compliance Observations specify separately as annexure: exceeding Rs. 50,000/-
Verify and comment high velocity transactions in newly opened SB and Current
24 Accounts. No such Cases

Cheque Book /Debit card:

Cheque books are issued only
Cheque books are issued only against requisition slips and in case where cheque against requisition slips, and
books are issued against request letter, acknowledgement of the account holder is acknowledgement obtained by
1 obtained Its account holder
Issue of cheque book is immediately recorded in the Cheque Book Issued Register
2 and in the system (i.e. VPIS module) as well Yes recorded in VPIS module
Whether Branch is loading cash in ATM on daily basis and updating the physical cash Branch is loading cash in ATM 2
3 details? IO to verify and comment. to 3 days
Whether branch had ensured that Debit Card is not issued to the following account
holders:1.Joint Accounts where operation condition is Jointly 2.Accounts of all minors
except Minor Students who are aged 10 years 3.Accounts under Garnishee/
attachment orders or which are subject to litigation/ dispute 4.Encumbered accounts.
4 IO to verify and comment. No such cases found
Whether branches have ensured to update the Mobile numbers of all the Debit
cardholders in CBS, both existing as well as newly issued cardholders to facilitate
sending of SMS alerts in respect of card transactions, as a security risk mitigation Yes, branch has ensured and
5 measure? IO to verify and comment. updated all details in CBS.

LOANS and ADVANCES:

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 No. of Advances/Loan accounts Opened during the month - (FRESH
LIMITS and LOANS / RENEWALS/ADHOC/ENHANCEMENTS) - (Split up Loan accounts Opened during the month Split
1 details may be furnished) up detailed list attached
Whether loan application register is maintained & updated properly? Yes loan application register maintained &
2 Deviations, if any updated up to 19-09-2024
3 Whether branch has adhered to KYC norms in respect of borrowers. Yes, Branch as adhered to KYC norms.
4 Whether Sanctions made are within the delegated powers stipulated Yes, sanctions are made within delegated
powers.
No. of cases where ratification not obtained where sanctions/ADHOC
permitted beyond branch powers during the Month. Details to be
5 furnished. No such cases found
Pre sanction verification/ due diligence, credit investigation, compliance
to eligibility norms, deviations, if any, noticed. Whether Credit Risk
6 Rating is done? Details of account wise to be specified. Refer Annexure vi
Whether legal opinion, asset valuation certificate, IT/GST returns,
7 Financial statements are obtained wherever prescribed? Deviations if any Refer Annexure vi
8 Whether CIBIL data, RBI DEFAULTERS DATA etc verified before sanction. Refer Annexure vi
9 Deficiencies on Quality of Appraisal, if any to be listed account wise Refer Annexure vi
10 Whether prescribed applications are obtained / received complete in all yes
respects?
Whether credit reports / appraisal reports are prepared in the required
11 formats? And whether branch has done credit appraisal as per norms? yes
In case of rejection of proposals, whether the same has been handled as
12 per the guidelines? No such cases found
13 No. of accounts where Deficiencies are noticed Refer Annexure vi
No. of cases where PBS/ABS and copies of latest tax returns, licenses /
14 approvals, other financial papers not obtained while processing a Refer Annexure vi
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 proposal
Whether appropriate method is adopted for assessment of working
15 capital? yes
Submission of KA-82 and sending copies of process note, LRF,BCS, ROR
16 to RO and attending to Review Observations. CA to comment KA-82 updated up to July 2024
Whether security perfection for all the securities charged in favor of the
Bank has been done (i.e. charge creation/mortgage, CERSAI registration,
17 ROC registration, hypothecation marking in RC book etc.)? Refer Annexure vi
Yes, accounts covered under CGTMSE
18 Whether CGPAN no. obtained for accounts covered under CGTMSE? scheme obtained.
19 Whether correct rate of interest has been applied in CBS? yes
Whether proper loan documents are obtained for the loans sanctioned
during the month under report and confirm they are written/complete in
all respect? (Furnish the details of missing documents, blank &
20 incomplete documents, if any in Annexure VI Refer Annexure VI
Whether all the loan documents obtained in respect of loans sanctioned Securities Register (B-31) maintained and
21 during the month are recorded in the Securities Register (B-31)? updated till 06-06-2024.
Whether the genuine deposit receipts are attached to the Loans on Yes , deposit receipts are attached to the
22 Deposit accounts? Loans on Deposit accounts.
Whether pre-release audit has been conducted wherever applicable
23 (Rs.50 lakh & above) No such case found during this period
24 Whether pre-release audit observations are complied with yes
Whether financial statements are analyzed and commented as per yes
25 guidelines. Comment on the quality of analysis separately
Whether the branch has worked out the critical ratios and commented in yes
26 the credit report?

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 Auditors to comment on Level of compliance to critical terms and No such case found during this period
27 conditions of sanction
Number of Accounts where Sanction terms and conditions not complied No such case found during this period
28 with? Details of deficiencies to be furnished
Whether the branch has obtained Provisional Balance Sheet and other yes
29 financial statements when the ABS is more than 6 months old?
30 Whether pre sanction visits are made and recorded? yes
Whether branch has done credit appraisal as per norms and whether yes
confirmed availability of necessary licenses/permits which are required
31 to deal in certain commodities and confirmed in the credit report?
Whether financial statements are analyzed and commented as per
guidelines. And whether it is ensured that the available balance sheet is
32 not more than 7 months old? yes as per guidelines
Yes, Insurance due date register is
33 Whether Insurance follow up register is maintained maintained
No cases where Insurance policy not made available/ securities not
insured/ expired but not renewed / policies where Bank Clause not
34 available. (No. of under insurance cases also to be furnished) Refer annexure vi
Whether periodical statements of stock/debtors and financial statements
etc. are received from the borrowers and are properly scrutinized by the
35 branch officials and drawing powers have been correctly arrived at Stock register maintained and not updated.
Whether the stock statements, drawing power register and Insurance Stock statement and DP register maintained
36 registers are maintained? Comment and updated upto March 2024
No. of accounts where Penal charges not charged on Delayed/non-
37 submission of stock statements No such case found during the month
38 Any other defects :

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 Whether Project Appraisal Report covers all the essential ingredients and
39 negative aspects if any brought is overlooked? yes
Whether sanction from appropriate authority is obtained for takeover of
40 borrowal account? yes
Whether Quick Mortality accounts have been correctly identified and
41 reported? No such cases
In the case of term loans whether loan proceeds along with margin are
directly remitted to the supplier, in the case of advances for purchase of
42 machinery? No such cases
When there is change in supplier / machinery to be purchased, whether
43 sanctioning authority approval is obtained? No such cases
In the case of building under construction whether disbursement made
only in stages, after inspection and architect s / engineer s certificate for
44 work completed with cost thereof is obtained? No such cases
Whether there are any transactions which is are of accommodation
45 nature? (cite such instances with reason) No such cases
Hypothecation agreement has been obtained in case of transactions
46 involving machinery, vehicles etc. No such cases
The reversal of expired guarantee has been done as per guidelines,
particularly in respect of Guarantees issued in favor of Govt. and Govt. No such cases
47 Depts
CA to verify correctness of master creation of all loan accounts created
during the month under audit including correctness of interest rate, Verified in CBS master creation of all loan
moratorium period, repayment schedule in CBS. Any divergences from accounts created during the month found
48 the policy guidelines/sanction letter to be reported specifically correct
Adherence to time norms for disposal of credit applications particularly
49 SME and other priority credit. If No Observations. yes
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 KA-82 statement submitted upto August
50 Whether Branch is responding queries raised by RO / HO for KA-82 2024.
I) There were 112 Suit Filed accounts as on
31-07-2024.
ii) There were 54 Decreed Accounts.
Review of accounts marked for Recovery and Suit filed cases in Court/ iii) There were 29 Accounts in which EP Filed.
51 DRT iv) No 25 Pending Accounts for EP filing.
Number of suit filed accounts available at branch and whether
permission for the same is obtained/ available? IO to verify and Total Suit filed cases in the Court are 112 in
52 comment. which permission obtained.
Whether Branch has ensured creation of Charge/ Mortgage on
agricultural land through respective online portal wherein the same is
taken as security for our exposure and preserved a copy of charge Yes, Branch has ensured creation of charges
creation/mortgage documents along with respective loan papers? IO to and Mortgage.
53 verify the same and comment
CA to visit minimum of 2 units/borrowers financed during the month and
54 comment on the end utilization of loan amount. Visited the spot & reported below
Loan A/c No. Name Amount Loan type Property details AREA Property/ Stock/Value
89165661508 Nagarathna 1,00,000 VIKAS Hypothecation on Goutam Canteen DC 1,00,000.00
Guru Gunaga ANNAPOORNA Stock Compound Belagavi
89165881024 Sadanand 80,000 FSSCC- VEH TWO Hypothecation of R/O H.No 4219/A-2, 1,17,464.00
Narayan WHEELER Vehicle Khadak Galli Belagavi
Sulkar

Whether there is any misutilisation of the loans and whether there is No such cases found
55 instances/indicative of diversion of funds
Whether branch is maintaining AOD register and updating the AODs
obtained in CBS? Particulars of time barred accounts shall be furnished in
56 Annexure I AOD register maintained.
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 GOLD LOANS
Whether Gold jewels are handed over to appraiser by the borrower in the presence
of manager/ Officer and appraisal is done by the appraiser in the presence of
1 borrower and officer of the bank yes
Yes, gross and net weight of
Whether gross and net weight of each item is mentioned separately along with each item is mentioned
mentioning total number of items and weight in the loan application form as well as separately in loan application
2 in CBS form as well as in CBS
Whether the loan docket is signed by the Borrower, Jewel Appraiser and Officer/
3 Manager yes
Whether the appraised jewels are taken control by the key holders immediately after
4 appraisal and safe dual custody is ensured yes
Whether the gold pledge and redemption register is maintained properly as per the
5 structured format yes maintained
Whether the appraiser is seated in such a way that the appraisal work is monitored/
6 captured under the surveillance of CCTV camera yes
Comment on Jewel loans completed 12 months from the date of loan and the action
7 taken for re-appraisal and recovery. Details to be furnished in Annexure III Refer Annexure III

RECOVERY
Yes, marking is done in respect
Whether marking is done in respect of loan accounts covered under CGTMSE which of loan accounts covered under
1 slipped to NPA within the timelines? CGTMSE which slipped to NPA
Whether claim is lodged under CGTMSE for eligible accounts within the prescribed Yes, claim is lodged under
2 timelines? CGTMSE for eligible accounts

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 are 33 amounting to Rs.
49,22,481.00
Yes, maintained as per Cir.
3 Whether suit filed accounts are maintained as per Cir. 43/2012? 43/2012
There were 54 accounts which
4 No. of accounts pending for obtention of Decree? are pending Decree.
There were 25 accounts
Pending for filing EP No. of
5 No. of accounts pending for filing EP? accounts
No such case covered under
6 No. of accounts pending for obtention of Recovery Certificate under KPMR/KACOMP? KPMR/KACOMP
7 No. of time barred accounts due to non-execution of decree/Recovery certificate No. NIL
Whether branch has initiated action under SARFAESI for all eligible accounts?
8 Discrepancies, if any Under SARFAESI No 25
9 Comment on status of cases under DRT, if any cases under DRT No 14
Black list register is maintained
10 Whether branch is maintaining & updating Black list register as per the guidelines? but not updated.
Yes, OTS proposals are settled
as per the existing norms and
11 Whether OTS proposals are settled as per the existing norms? There are 0 accounts.
Whether branch has entered all the OTS proposals in OTS portal invariably? IO to Yes, branch has entered all the
12 verify and comment. OTS proposals in OTS portal

GUARANTEES:
01 guaranty issued during the
1 No. of guarantees issued during the month month.

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 Whether Guarantees issued in specified format with protective clause as per norms
2 (indicate deviations if any) Yes
Guarantees. issuing
/extending /renewing
Collection of applicable commission while issuing /extending /renewing the commission recovered as per
3 Guarantees. - Income leakage to be reported under Annexure guidelines
Yes Counter Indemnity/
guarantees obtained as per
4 Whether Counter Indemnity/guarantees obtained as per guidelines guidelines
5 Deficiencies if any furnish details No Deficiencies found
6 Whether any guarantee is invoked? No guarantees are invoked
7 No. of expired guarantees, amount and observation NIL

INTERNAL CONTROL / HOUSE KEEPING:

1 Pending BA / SA/SL/Suspense entries beyond 30 days No such cases
Comments on operations in Staff accounts deposits, OD and others. Review of
transactions in the employees accounts Overdrawn/ Over dues, Credits/Debits
2 beyond the means of the staff etc. OBSERVATIONS: No luscious account found
Yes staff card maintained &
3 Whether staff cards are maintained upto date? updated
4 Whether complaints received are recorded in register and disposed off promptly? Yes complaints box maintained
5 Whether exchange of keys and allotment of work are recorded properly in office 1) Yes exchange of keys
order book? recorded properly in office
order book
2) Work allotment done
(01/10/2024), and recorded
properly in office order

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 book.
Whether the branch has reconciled and tallied all BGL accounts? Furnish the details in
6 Annexure V Refer Annexure V
Whether the contra account heads (i.e. OBC/OBLC, Legal expenses receivable on suit Yes, All contra account heads
7 filed a/cs/Unrealised expenses on suit filed a/cs) are reconciled and tallied? are reconciled and tallied
In respect of front end subsidies received, whether the same is utilised as margin
money or credited to loan account immediately after the disbursement in tune with
the respective scheme guidelines. (Note: Every front end subsidy received should be
backed by subsequent opening of loan accounts, in the name of the respective
8 borrower). If there are any deviations, please mention the full details. NIL
In respect Back end subsidies received, are there any cases of adjusting to Loan
9 accounts before the completion of Lock-in Period? NIl
In respect Back end subsidies received, are there any cases of adjusting to un-related
10 Loan accounts? No
Are there any instances of CGTMSE claims received being credited to Commission CGTMSE claims received being
Heads without crediting to respective Loan accounts (after exhausting all Recovery credited to CGTMSE claims
11 measures as per the guidelines)? (If any, please mention all such details) received BGL head

Income related:
During the audit 2 death case
claimed branch has settled
Whether Branch is settling the death claims duly adhering to the prescribed time using all the prescribed time
1 norms ? CA to verify and comment. norms.
Yes death intimation marking
2 On receipt of intimation of death, whether the branch is marking the same in CBS? in CBS

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 Whether branch is scrutinizing and maintaining the signed copy of the mandatory Yes, maintaining and
3 reports including the daily slips/vouchers/challans? IO to verify and comment. scrutinizing done periodically.
Segregation of records to be
Whether Current and Old records are being segregated periodically in order to done periodically for easy
4 accommodate additional/ new records for easy access? access.
5 Whether the debits to the General charges are within the powers of the Manager? yes
Whether PCs are accessed by any third party (viz., BC, agents of subsidiaries, jewel
appraiser, daily wager, etc.) other than authorised bank staff? IO to verify and
6 comment. No

COMPLIANCE OF INSPECTION OBSERVATIONS

Whether the branch had attended the critical observations of previous months’
concurrent audits and submitted compliance? Whether the compliance submitted by August 2024 months concurrent
the branch is in order? Particulars of the critical observations of previous months not audits compliance submitted
1 attended/properly complied shall be reported in Annexure VII (on 28/0/2024) .
2 Sensitivity of the branch to Fraud Prone / Vulnerable / Sensitive areas No
3 Persisting irregularities if any No
4 COMPLIANCE OF INSPECTION OBSERVATIONS
Any other critical issues to be brought to the notice of RO/HO for immediate
5 intervention No
Whether legitimate income of the Bank is collected and accounted correctly?
6 Seepage of income to be furnished in Annexure II Refer Annexure II
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 Yes, Q numbers/journal
numbers are written on
Whether Q numbers/journal numbers are written on vouchers and signed by the vouchers and signed by the
7 maker and checker? maker and checker
B75 register maintained and
8 Whether B75 register is upto date updated up to 15/05/2024
Whether password secrecy is maintained by staff? Comment if any deviation is Yes, Password secrecy is
9 observed maintained by staff.
Screens will be automatically
locked when not in use within 2
10 Whether screens are locked by the user when they are away from the system? minutes

HOUSE KEEPING
Whether branch has ensured Ambience maintenance and up keep of premises
including frontage, exterior outlook, sign boards, interior walls/flooring, toilets,
counters, manager cabin, locker area, store rooms and ATM lobby etc.? CA to verify
1 and comment. Need some improvement.
Yes notice boards inside the
Whether all the following mandatory notice boards inside the premises are available premises is available and details
2 and details are updated are updated
When was the last destruction of old records process carried out in the branch? Destruction of old records done
3 (Note: Eligible old records to be destroyed once in a year) in the year of 2021
Whether Branch had ensured 100% detection, Reporting and Monitoring of Suggested to follow the said
4 Counterfeit Notes as per the extant guidelines? IO to verify and comment. guidelines
5 Whether GST of the Bank has been displayed on the name Board? GST number displayed on the
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 notice Board

SOCIAL SECURITY SCHEMES & THIRD PARTY PRODUCTS MARKETING

Yes, Branch has obtained
Whether Branch has obtained appropriate Application (Consent-cum-Declaration) appropriate Application
under PMJJBY, PMSBY & APY from the applicant for enrolment under the scheme and regarding PMJJBY, PMSBY &
1 the same is completely filled? APY
Whether all the applications received under PMJJBY, PMSBY & APY have been filed
2 properly and kept in safe custody? Yes
In case enrolments are sourced from dormant Accounts, such accounts have to be
3 activated as per the extant guidelines applicable for activating dormant accounts. extant guidelines followed
Whether consent from the customer is obtained while selling insurance products?
4 Discrepancies, if any No such cases

EARLY WARNING SIGNALS

1 Whether any high value NEFT/RTGS payment to unrelated parties observed? No such cases
2 Whether any instance of heavy cash withdrawal in loan accounts is observed? No such cases
No such cases found (see EWS
3 Whether any suspicious transactions are noticed? report)

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 CERTIFICATE

Certified that the daily routine work of the Branch was checked with an aim to supplement the branch efforts in ensuring a good internal
control system in the critical and sensitive areas of branch functioning. Further, the irregularities observed and brought out in the
Concurrent Audit Report were discussed with the Manager of the Branch and they have been requested to set right the irregularities and
submit their rectification report.

All the areas mentioned in the guidelines, including that of verification of seepage of Income have been covered while conducting
Concurrent Audit and finalizing the report for the month under Audit. Further certified that the Branch has attended to the rectification of all
irregularities mentioned in the earlier concurrent audit reports except the following:
a) Nil
For M/s. S S Kamate & Associates
Chartered Accountants
FRN 011403 S

Place: Belagavi
Date:05/10/2024
CA Shivanand S Kamate
M No. 217616
Proprietor
UDIN:
SUBMISSION OF CONCURRENT AUDIT REPORTS: The following procedures should be adopted in the matter of submission of Audit
Reports.
1) Original to the Branch Received copy of the report and compliance will be
2) Copy to the Head Office submitted within 7 days to RO/HO Inspection Dn.
Place: Belagavi

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Date:05/10/2024 Branch Manager

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