Professional Documents
Culture Documents
N.Gopal
Deputy General Manager & MOF
CAB Pune
Reserve Bank of India
Background
1931 to 1966
Various committees and study groups commended
the working of the UCBs in extending support to
the micro agencies to whom the commercial
banking sector was quite wary of lending.
Gaining Importance
Background. Cont.
Division of Responsibilities
Reserve Bank Control and
Regulation (Banking related
functions)
Licensing,
Branch Licensing,
Area of operation,
Inspection
Directions
Imposition of Penalty
Prudential Norms
Capital, (CRAR)
Asset Quality,
Earnings,
Liquidity, CRR and SLR
Systems and Control,
Customer Service etc
Incorporation, Registration
Constitution of Board,
Removal of Directors
Superseding the Board
Audit,
Enquiry into the conduct of
Directors
Winding up
Objectives of licensing
RBI Inspection
i.
ii.
iii.
iv.
v.
vi.
B.
C.
RBI inspection-types
On-Site Inspection
Four key elements
I.
System of continuous / on going supervision;
II.
Focussed monitoring and examination powers;
III.
Discrimination between sound and unsound banks; and
IV.
Enforcement of regulatory requirements and correction
of deviations.
Statutory Audit
CAMELS
Reserve Bank of India
Capital
Capital cont..
Computation of Networth
Transfer from various reserves
IFR and IDR
Transfer of certain Items to Reserves- DDs Payable etc
Unclaimed Deposits
Transfer of IFR to P & L account to show increased profits
LIABILITIES : CAPITAL
Authorized Capital
Paid up share capital
Free reserves
Capital Reserves from surplus from sale of assets
TIER II CAPITAL
Provisions
Long term Deposits
Investment Fluctuation reserves
LIABILITIES : DEPOSITS/BORROWINGS
Bills payable
Branch Adjustments / Inter-office adjustments
Interest Payable
Suspense / Sundry Creditors
Provisions
Asset quality
Asset Quality
Asset Quality
Categorization of Advances
Sampling of Accounts
CRITICAL AREAS
Underestimation of NPAs
Erroneous classification of NPAs
Adequacy of Provisions
Diminution in value of various assets particularly
investments, deposits with banks
Interbank Exposure limits
Government Securities Transactions
Non-SLR investments
Exposure to real estate sector
ASSETS --CASH
Custody
Strong Room
Safe keys
Insurance
Security Arrangements
Checks and Balances
ASSET QUALITY--SLR
Management
Earnings
Liquidity
Systems
PERIODICITY
Scheduled
--- Annual
Non-scheduled Grade C & D --- Annual
Non-scheduled A & B
24 months
Post inspection
COMPLIANCE
Thank You