Efficient record management is one of the cornerstones of banking. Banks are legally required to preserve financial and customer records for specific periods, ensuring compliance, operational continuity, and customer trust. In India, the Reserve Bank of India (RBI) and other regulators mandate clear timelines for record retention, alongside procedures for secure destruction after expiry. This…
An Information Systems Audit (IS Audit) is a specialized review conducted to ensure the security, integrity, and effectiveness of an organization’s information technology infrastructure, especially vital in banking. IS Audit focuses on evaluating IT controls, risk management, and compliance within the computerized environment of banks. Purpose and Scope An IS Audit in banking aims to:…
Audits and auditors form the backbone of accountability in the banking sector. By ensuring compliance, detecting risks, and fostering transparency, they safeguard public trust while reinforcing the stability of the financial system. Let’s break down this vital subject in a clear, reader-friendly way for banking professionals and enthusiasts alike. ## What Is an Audit in…
The banking industry is constantly evolving, and behind its stability and growth lie key processes such as winding up, mergers, and acquisitions (M\&A). These mechanisms don’t just affect banks—they influence financial stability, market competitiveness, and customer trust. To ensure fairness and resilience, they are governed by strict regulatory frameworks, primarily the Banking Regulation Act, 1949,…
A company’s balance sheet, also known as a “statement of financial position,” reveals the firm’s assets, liabilities, and owners’ equity (net worth) at a specific point in time. It’s used by investors, creditors, and analysts to assess a company’s financial strength, ability to pay debts, and growth potential liabilities, current liabilities, contingent liabilities & assets.)…
The Banking Regulation Act, 1949 prescribes various statutory returns that banking companies must submit to the Reserve Bank of India (RBI), and in some cases to NABARD (for cooperative banks). These returns ensure that the regulator has accurate, timely, and consistent data to monitor the financial health of banks and to safeguard the stability of…
Correct and accurate compilation of financial information and its disclosure, in a manner that is standardized and understood by stakeholders, is central to the credibility of the corporates including banks. The preparation of financial information and its audit is regulated by the banking regulator in India (RBI) with stringent penalties for non-observance. Accounting Standards serve…
Loans and advances form the backbone of the Indian financial system. To ensure responsible lending and safeguard both borrowers and institutions, they are governed by a robust regulatory framework. At the center of this framework is the Reserve Bank of India (RBI), which issues detailed guidelines for banks, Non-Banking Financial Companies (NBFCs), and digital lenders.…