Call Money Operations
The auditor is required to make comments on system relating to call money operations as under:
System related to inter-bank call money.
The auditor should verify that aspects relating to call money operations, viz., prudential limits in respect of outstanding borrowing and lending transactions, reporting requirement, documentation, etc., are adhered to in accordance with the guidelines of RBI Master Directions on “Master Direction on Money Market Instruments: Call/Notice Money Market, Commercial Paper, Certificates of Deposit and Non-Convertible Debentures (original maturity up to one year)” dated July 7, 2016 (FMRD. Master Direction No. 2/2016-17. Any changes made to the rules and regulation during the year should be scrutinised. Auditor should check that all the above changes are promptly and correctly conveyed to all the branches and whether any branch LFAR contains any negative remarks for the above system.