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Common Irregularities in General Banking

Common Irregularities in General Banking

Common Irregularities in General Banking department of a Bank

Common Irregularities in GB

Cash department

• Vault Limit exceeded.
• Time of movement of cash to and from the vault is not being mentioned /recorded in the vault register.
• Entry for inward and outward cash remittance (Denomination wise) not given in vault register in accordance with remittance letter.
• Passing officer not always put initials in the specific column of cash payment & receiving register.
• Branch does not verify the No. of Prize Bonds with the result sheets of the draw.
• HOB is not holding key violating of G.B. Manual of Mercantile Bank.
• Rotation of duplicate keys not done by the branch since long.
• No Stamp register maintained by the Branch.

• Stamp register not being checked by the authorized officer.
• The stock of stamps in hand are not agreed with the statement of affairs. The difference is due to non-use of stamps on charge documents.
• Surprise cash checking not done by Head of Branch on the regular interval.
• Signature of the authorized officer and security personnel not obtained in the Cash Remittance Register in some cases.
• Account opened without obtaining Photographs of the account holder.
• Account opened without attestation of photographs of the account holder.
• Account opened without introduction.
• Introducers signature not verified by the authorized officer.
• Account opened without obtaining Trade License.
• Account opened by obtaining expired Trade License.
• Certificate of incorporation not obtained.
• Constitution & Bye-laws not obtained.
• Memorandum & Articles of Association not obtained.
• List of Management Committee / Executive Committee /Governing Body not obtained.
• Resolution relating to open & operation of the account not obtained.
• Nominee’s photograph not obtained.
• Nominee not declared.

• Nationality Certificate/National ID Card/Photocopy of Passport not obtained.
• Partnership deed not obtained
• Partnership Account Agreement and Letter of Partnership (MF6 & MF7) not obtained.
• License for Clinic / Diagnostic Centre / Hospital not obtained.
• KYC not authenticated/approved by the authorized officer.
• TP not obtained.

Maintenance of different types of A/Cs

• Cheque Book found Issued but Undelivered since long.
• Cheque books were issued and delivered but recipient signature not obtained.
• Balance Confirmation letter not sent to deposit holders.
• Letter of thanks has not been sent to the A/c holder & introducers.
• Overall anti-money laundering activities of the branch is not satisfactory.

Functions of A/Cs Department

• Vouchers were kept without Seal Gala.
• Voucher movement registers not maintained by the branch.
• Contra head not maintained in the voucher in case of transfer voucher.
• Transfer Register not maintained by the Branch.
• Balancing of the Security Stationery/Printing Stationery not done.
• Balancing of Sundry Creditors A/C not done.
• Balancing of Suspense A/C Payment Proceed of sanchay Patras not done on monthly basis.
• Balancing of Sundry Deposit : Sale Proceed of sanchay Patras differs with Statement of Affairs.
Dead Stock :
• Balancing Not done, Entry not updated in the register, Depreciation on dead stock not calculated properly.

Functions of Bills Section

• Monthly Balancing of OBC not done.
• Balancing of Demand Draft Payable not done.
• Balancing of Pay Order not done.
• Stop payment register not maintained by the Branch.

Functions of IT Section

• There is no access control register for entry into server room is maintained.
• Standard password protected screen saver are not available in most computers.
• There is no insurance policy of the hardware assets related to IT.
• Network design and its security are not implemented under a documented plan.
• Access privileges were not changed/locked within 24 hours when users’ status changed or left the branch.
Internal Control & Compliance
• No updated office order relating to duty allocation was found.
• DCFCL not prepared by the Branch.

Common Irregularities in General Banking