Tuesday, April 12, 2016

Oversight of Government Business in Agency Banks

It has since been decided to put in place a new system of oversight of government business:

(a)       In addition to various branches and CPPCs, the scope of the inspection will now also cover the Head Offices of agency banks.

(b)      No reports will be issued at the end of the review/inspection. However, the offices/branches will be advised of action points.

(c)       Comments in respect of action points marked as “Major” may be submitted to the Regional Offices of the Reserve Bank.

(d)      Regarding other action points, necessary rectification may be ensured by the bank itself. This may be examined and commented upon by internal audit.

As a part of the new arrangements, it has been decided to introduce offsite monitoring of government business.

It has also been decided to have periodical interactions with senior executives dealing with government business. The agenda for discussion would broadly depend on the bank’s size and nature of government business being handled by it. The discussions would, at a minimum, include the following:

(a)  Developments since last inspection;

(b) Sustenance of compliance with the inspection report findings;

(c)  Progress in case of large frauds relating to government business;

(d) Position of  complaints;

(e)  Pension related issues;

(f)  Issues raised by Government Departments such as delays and penalties;

(g) Issues raised by the Office of C&AG and other government agencies regarding the conduct of government business by the agency bank; and

(h) Other related issues.

Based on RBI circular dated 7/4/16. For further details please refer www.rbi.org.in”.................... Poppy Sharma