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)

Pankajji   , satyanarayananji , Kanagarajji  -   then why our esteemed members holding official positions in the  Institute failed  to prove this point .  Even at this late hour  is there any official communication  from them   ? 

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 

" Uthishtitha  ,Jagratha , Prapya vara nibodhatha"

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  -