Decision to audit Less Number of Public Sector Bank
Branches from Current Year
SHRI PIYUSH GOYAL:
Large scale banking is being
operated by public sector banks and all of us are very concerned about
the rising Non-Performing Assets of public sector banks. Despite
such huge increase in NPAs, the RBI, through one study group, has
now proposed to remove a very large part of the banking system from
the purview of branch auditing. All branches, which have advances
less than Rs. 20 crores, will no more be considered for the Branch
Audit System. This will increase the possibility of frauds. Nobody
will be going to check the accounts of the branches and it will have
serious impact on the accuracy of public sector bank accounts. It may
also have a serious ramification on the entire international view of the
Indian banking system. A large amount of deposits and interest
income will remain unaudited and the Branch Manager will arbitrarily
do anthing . The logic given is that this will save audit fee. There will 59
be almost Rs. 5 lakh crores of advances which will get out of auditing.
I suggest that this order should be kept in abeyance until
views from all experts are taken.
operated by public sector banks and all of us are very concerned about
the rising Non-Performing Assets of public sector banks. Despite
such huge increase in NPAs, the RBI, through one study group, has
now proposed to remove a very large part of the banking system from
the purview of branch auditing. All branches, which have advances
less than Rs. 20 crores, will no more be considered for the Branch
Audit System. This will increase the possibility of frauds. Nobody
will be going to check the accounts of the branches and it will have
serious impact on the accuracy of public sector bank accounts. It may
also have a serious ramification on the entire international view of the
Indian banking system. A large amount of deposits and interest
income will remain unaudited and the Branch Manager will arbitrarily
do anthing . The logic given is that this will save audit fee. There will 59
be almost Rs. 5 lakh crores of advances which will get out of auditing.
I suggest that this order should be kept in abeyance until
views from all experts are taken.
(Shri Naresh Gujral, Shri Prakash Javadekar, Shri Kalraj
Mishra, Shri Avinash Rai Khanna and Shri Tarun Vijay associated)
Mishra, Shri Avinash Rai Khanna and Shri Tarun Vijay associated)
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