II. Liabilities
Deposits
(i) Have the Controlling Authorities of the bank laid down any guidelines with respect to conduct and operations of Inoperative Accounts? In the cases examined by you, have you come across instances where the guidelines laid down in this regard have not been followed? If yes, give details thereof.
Refer the guidelines issued by Head Office in this regard.
Whether, such guidelines are followed strictly.
Wherever the guidelines are not followed report the same along with full details.
Whether system identifies the inoperative accounts and converts the status of such accounts to inactive.
Whether branches are transferring inoperative accounts and shown under a separate DEAF Deposits accounts in the branch General Ledger.
Whether unclaimed liabilities (whether amount due has been transferred to DEAF) is reflected as Contingent Liability.
Note down the procedure for making such inoperative account, operative.
Whether guidelines/circulars issue by RBI on Demonetisation of specified bank notes with respect to deposit in inoperative accounts have been followed, if not, then it should be reported. Particularly, concurrent auditor or other Management report sent by branch to Controlling Authority in this regard should be reviewed and deviation if any required to be reported.
(ii) After the balance sheet date and till the date of audit, whether there have been any unusual large movements (whether increase or decrease) in the aggregate deposits held at the year-end? If so, obtain the clarifications from the Management and give your comments thereon.
Compare the aggregate deposits as on 15th March, 20XX, 31st March, 20XX and last day of audit.
Ascertain the reason for large variation other than due to application of interest / provision as on 31st March, 20XX
Ensure there is no evergreening
(iii) Are there any overdue/ matured term deposits at the end of the year? If so, amounts thereof should be indicated.
Refer the guidelines issued by Head Office in this regard.
Whether, such guidelines are followed strictly.
Whether interest is provided on matured deposit as per RBI guidelines.
Follow up done with customers to renew such accounts