This is with reference to the Reserve Bank of India's circular DBOD No. BP.BC.4/21.04.018/2003-04 dated July 19, 2003 on "Guidelines on Netting Off of Old and Small Value Entries - Clearing Differences" in terms of para 3(e) of which banks should maintain a record of the clearing difference entries transferred to Head Office at the branches/Head Office for verification by internal inspection/auditors/RBI inspection, whereby the netting off at the branches, the transfer of entries by the branches to the Head Office, the netting off at the Head Office and writing off/transfer at the Head Office should be subjected to a 100 percent audit by the internal auditors, the concurrent auditors and the statutory auditors.
Now, it has been clarified by the Reserve Bank of India vide its circular DBOD No. BP.BC.37/21.04.018/2003-04 dated October 20, 2003 to all Scheduled Commercial Banks (Excluding RRBs and LABs) that netting off at the branches, transfer of entries to Head Office, netting off at the Head Office and writing off/transfer at the Head Office should be subjected to a 100 percent audit by at least
two of the following audits viz. concurrent audit, internal audit and statutory audit.
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