RBI amends Master Direction on KYC norms

RBI on Tuesday amended the MD on KYC to further leverage the Video-based Customer Identification Process (V-CIP) and to simplify and rationalise the process of periodic updating of KYC. Banks and other regulated entities have to undertake Customer Due Diligence (CDD) while dealing with the customers as per the process laid out in Master Direction…

These 14 Types of Bank Audits you need to know

The audit is classified into many different types and levels of assurance according to the objectives, scopes, purposes, and procedures of how auditing is performed. The financial statement auditing is done normally in accordance with International Standards on Auditing (ISA) as well as other local auditing standards. An operational audit involves checking the efficiency of…

RBI relaxes bad loans provisioning rules for banks, permits 100% utilization of floating provisions

The Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday announced that banks are allowed to utilise100 per cent of floating provisions/counter-cyclical provisioning buffer for making specific provisions for non-performing assets. RBI in its circular dated May 5, 2021 stated that “In order to mitigate the adverse impact of COVID 19 related stress on…

RBI Governor Statement: The situation has reversed from being on foothills of strong economic recovery to facing a fresh crisis

Reserve Bank of India (RBI) Governor Shaktikanta Das today made an unscheduled speech as the second wave of coronavirus continues to devastate the country. “As the financial year 2020-21 – the year of the pandemic – was drawing to a close, the Indian economy was advantageously poised, relative to peers. India was at the foothills…

The objectives and scope of risk-based internal audits in banks

Historically, the internal audit system in banks has been concentrating on transaction testing, testing of accuracy and reliability of accounting records and financial reports, integrity, reliability, and timeliness of control reports, and adherence to legal and regulatory requirements.  Recently, vide circular DoS.CO.PPG./SEC.04/11.01.005/2020-21 dated January 07, 2021, RBI asked banks to align their internal audit function…

How revenue audit carried out in Banks?

Revenue audit of a bank branches is the audit of items governing income & expenditure of banks.The audit is conducted with a view to verify the accuracy, relevance of expenditure incurred & Incomes earned by the banks according to applicable latest notification and circulars. The audit is entrusted to a Charted Accountant who has to…