Audit Manual - Core Treasury System Uttarakhand

Government of Uttarakhand
Audit Manual
Sr. No Activity Risk Audit Steps
F
Cooperative Banks
28 Cooperative Banks • Unauthorized loans
• Non Recovery of due amount
• Inefficient working of cooperative banks
• Non Adherence to Banking Regulation
Act
• Check that no bank has made any loans & advances on the
security of its own shares (Banking Regulation Act,1949 Part V,
Section 20)
• Verify whether a prior permission of the Reserve Bank is taken by
co-operative bank before opening a new place of business or
change otherwise than within the same city (Banking Regulation
Act,1949 Part V , Section 23)
• Verify that co-operative bank maintained cash reserve as
prescribed in Banking Regulation Act,1949 Part V , Section18)
• Verify whether that the co-operative banks, other than a primary
co-operative bank, submitted a copy of the return which it submits
to the Reserve Banks also to the National Bank (Banking
Regulation Act,1949 Part V Section 27)
• Verify whether a proper procedure is followed by cooperative
banks while sanctioning loans
• Verify whether a record all sanctioned loans is maintained
• Verify whether all the bank formalities(security deposit/bank
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