Mr. Hemant Parab - ctconline.org CA Hemant Parab... · NAME OF THE REPORT FINACLE BANCS 24 10 Loan...

Mr. Hemant ParabChartered Accountant

1st April 2017

SHANBHAG & PARAB ASSOC. CA's 1

CBS

It is the process of providing a centralized on line system where all the data related to transactions, customer data are stored and are available to all networked branches for access.

The information technology & Communication technology are merged to suit core needs of banking is known as core banking solution.

It is common IT solution , a central shared database support the entire banking application



CenterServer (Data)

Mobile & Phone

Banking

Bank Branch

ATM ,Debit &Credit

Card

Internet Banking

Major types of CBS Program

Finacle

(Infosys)

BaNCs 24 (TCS)

FlexCube(Oracle Corp)

C-Edge(SBI & TCS)



Bank of India (BOI) Dena Bank

Bank of Baroda ( BOB) Oriental bank of Commerce

Indian Overseas Bank (IOB) Andhra Bank

Punjab National Bank (PNB) IndusInd Bank

UCO Bank Axis Bank

IDBI Bank Federal Bank

Vijaya bank ICICI Bank

United Bank of India Kotak Mahindra Bank

Union Bank of India ING Vysya Bank


B) BaNCs 24 (TCS) C) FLEXCUBE (Oracle)

SBI & Associates Banks Syndicate bank

Central Bank Canara Bank

Bank of Maharashtra Yes Bank

Allahabad Bank HDFC Bank

Indian Bank Lakshmi Vilas Bank

D) C- Edge ( SBI &TCS)

Small Rural Bank &

Cooperative Bank

Data Centre

CBS application software ( Finacle /BaNCs 24)

Hardware at Branches & Data center

Network connectivity

Availability of Power continuty

Delivery Channels ( Broadband MTNL, Hathway,

Lease Line)

Disaster recovery site


All data processing

Beginning of the Day (BOD)

Storage, back up operation

MIS report generation

Inter branch account reconciliation

Preparation of B/S ,PL and Trail Balance and

Annual results

Interest application & Other charges

e.g . Folio charges, Minimum balance charges etc.


Manual Check & Control Transaction input and Authorisation Completion of Branch Operation End of the Day (EOD) Verification of Document & Securities Inspection of stock &Book Debts Inspection of Assets & Security Pledge of NSC/KVP/Gold Jewelry Lien of FD & Mortgage of Property KYC Checks Monitoring operation of A/c. End utilisation of fund Classification of Advance as per RBI norms Discretionary Power of Operation -

TOD , Waiver etc.


Threat and risk (Challenge)

(A) Non availability of continuous power

(B) Net work connectivity, low capacity etc

Auditor Roll under CBS : Risk assessment & Control

(A) Audit risk is acceptable at low level

(B) Procedure of Data transmitted is correct & complete

(C) Various control exist between on line and off line records



Confidentiality:

Information is shared with authorized personnel

( Maker and checker concept)

Integrity:

Information is authentic ,accurate and complete

Availability:

Systems responsible for delivering , storing and

processing information

Maker checker concept always in used

No unauthorized person allowed to record the transaction

Only authorized person allowed to modified/amend master data ,under duel control

No operation on Holiday at Branch

Operation error reported and procedure of rectification

Dummy accounts balance should be NIL

Exceptional report must be generated and to be verify


Restriction in server room

Ensure floppy/Pen drive access not allowed on

nodes (except for RTGS)

Internet access should be separate from CBS

machines

Maintain Hardware access Register

ATM Cards & Passwords Pin envelopes are

stored in secured area under duals control


Power back up

Maintenance of down time Register

Machine break down register

Insurance /AMC of Machinery &

Equipment

Fire Extinguisher installed and active


Password management & History

Check active user IDs and guest IDs

Deactivation of User ID –where user

transfer to other branch – Staff, auditor

Special emphasis on unsuccessful login

attempts


SR.N

O. NAME OF THE REPORT FINACLE BANCS 24

1 Abnormal Transaction Inquires ATIDEPOST/ CC / OD & DL/ TL Account & Services ---

Enquiry --- Transaction

2 Account TOD Inquiry ACTODI TOD Report

3 Exception Report EXCPRPT Report Server ---- Exceptional Report

4 Insurance Expired INSEXPD Report Server---Expired Insurance Report

5 Accounts Interest report AINTRPT

Report Server ----CC/ OD & Loan Balance File Or

Product Sheet to be requested from Data centre (If

not available through product name.)

6 Loan sanction Limit Reivew LARORCC /OD & DL/ TL Accounts & Services --- Enquiry -

---Short/ Long Enquiry

7

List of Pending & Dishonored

Bills FBPADB Report Server --- MIS Report/ Trade Module

8 Loan Interest Detail Inquiry AITINQCC / OD/ DL/ TL Accounts & Services ---- Interest

Rate History

9 Loan Overdue Details LOANODUECC / OD/ DL/ TL Accounts & Services --- Enquiry ---

- Long Enquiry / Short Enquiry


SR.NO.NAME OF THE REPORT FINACLE BANCS 24

10 Loan Overdue Position Inquiry LAOPI

CC / OD/ DL/ TL Accounts & Services ---

Enquiry ---- Long Enquiry / Short Enquiry

11 Loan Document expiry dates INQLAC

DL / TL Accounts & Services --- Security ---

- Customer --- Amend/ Enquiry

12 PCFC Balancing Report PCFCBAL

Report Server --- MIS Report / Trade

Module

13 Pending Installment List PLIST

CC / OD & DL/ TL Accounts & Services ---

Enquiry ---- Accounts

14 Rate List History Query RTHQRY

CC / OD/ DL/ TL Accounts & Services ----

Interest Rate History

15

Report for Matured OD/FD

Accounts ODFDREP

Report Server --- MIS Report --- Security

Matured Report

16 TDS Inquiry & Printing TDSIP

Through offline monthly repost on Account

wise/ Transaction wise tax deduction

17 Transaction Exceptions Inquiry TEI

CC / OD & DL/ TL Accounts & Services ---

Enquiry ----Transaction

18

Guarantee Expired but not

Reversed GENR

Reports Server---- Trade Module----

Guarantee Expired Report

19 Overdue Foreign Bills ODFB Report Server --- Trade Module


SOL ID – Service out Let ID i.e. Branch code

Set ID – Branch back office No. Branch who

initiated the transaction

Transaction ID , Journal No.& Date –

A Unique No. generated after completion of

Transaction through TM Module with date


Account No. Formation under Finacle

Separate series of Account No. for different Types of Accounts

E.g. A/c. No.34800 204 0006666 , made up of branch code i.e.

34800, Account Type - 204 , Account No.0006666

Transaction event

Entered – Post- Verified-Modified -Authorised

for Valid Transaction there are Two persons- Maker & Checker –

Dual Control matrix used for all transaction

Transaction types and sub type

Tran Type Eg. C- Cash , T- Transfer

Sub Tran Type Eg. CR- Cash Receipts, CP – Cash Payment

General Ledger Concepts

GL->GL subhead->Account

Stage- A- Add , I – Inquiry , V– Verify , M- Modify , D- Delete

Z – Closure


Exception Types :Control error handle through Warning, Exception and Errora) Warning – Systems gives warning for possible error based on prefixed

criteriab) Exception – Transaction recorded in the exception report for override

rules by userc) Error – Systems gives error message for incorrect value and not allowed

to go further Accounts and Customer Master :

a) ACM : Account Customer Master – Its provide basic detail Cust ID,Accounts types etc.

b) INTTM : Int. table Maintenance Used to modify interest rate on depositsand Advance

c) ACINT : To verify running interest Calculationd) TM&TI : Transaction maintenance and transaction Inquiry – with used of

TranID & Date transaction can be locatede) FTI : Financial Transaction Inquiry – Used to find the transaction based

on various search criteria.


f) SRM : Security Register Maintenance For setting up of Drawing

Power and maintenance of securities , bank officer need to up

date the stock and book debts statement ,Insurance /Valuation date

not filled in

g) ALM : Account Lien Maintenance – used to mark/lift lien from a/c

h) ACTODM : Account TOD Maintenance – Setting up TOD system

allows user to process to specific customer transaction beyond

the regular limit set up at account level TODRP – monthly /yearly

TOD report for all customers System generated TOD – interest ,

bank charges applied as debit in insufficient limit and Manual/user

generated TOD –Payment against clearing allowed within

prescribed limit for specific period

i) LTL : Limit Tree Lookup – Used to monitor utilized and available limit

for customer

j) ACLHM : Account Limit History Maintenance – History of DP and

Limit


k) AINTRPT : Account Interest Reports

l) DDSM : DD/PO Issued Status Maintenance

m) ICHB : Issue Cheque Books

n) ISRA : Inventory Status Report – Stationery available under

SOL ID

o) TDSIP : TDS inquiry/print – Various menu as per different bank

p) BRBPR :Balancing Report for Bills Purchased (Inland) –Long

pending /overdue bills can be verified

q) FBP : Foreign Bill Inquiry – Lodgment (L), Realization ( R) ,

Closure (Z)

r) AFI : Audit File Inquiry - any change in Account status (eg.

Dormant to active)

s) Q -Exit


Under CBS risk is higher if controls are week and

incorrect /incomplete input date entered in the systems

a) Systems Level Checks & Control

Operating systems manual

Password expiration

User ID register

Duty roster

Antivirus updation

Computer manual

Day end control


b) Manual Checks & Control:

• Correct input data and complete filled up in the

systems as per statutory compliance

• Physical verification of Assets and Cash &Security

• Monitoring operation of account and end utilization of

fund

• Opening Advance A/c and deposit as per correct prefix

, Chose correct product is chosen

• Verification of Loan document for compliance with

sanction terms

• Classification of advance as per RBI norms


Zero Balance in account

Loan a/c with zero interest rate

Overdue Term Deposits/LC

Application of Interest, Minimum balance Charges ,

folio charges etc

Vouchers have to initialled by same officer who

authorize on screen

Numbers to be noted on the vouchers for system

generated transaction

Over due instalment & int on advances

Suspense/Nominal /sundry creditors/Sundry deposits


TDS verification , without PAN charge @20% systems

shall applied or not ,filing of return on time

Service tax collection and payment proper data transfer

to H.O/Zonal

Check for 15H/15G

Account closing charges ,DD/PO charges, cheque return

charges

Whether all mandatory report generated ,verify & signed

including Sunday & Holiday

Transaction T.O in CC a/c

Verification of system uploading of transaction during

downtime


Exceptional report –Changes of DP, Review of TOD , if

exceed reported to HO for approval

Duplication of customers IDs

Log Register for change in schemes IDs

Substandard account restructured during the year

Interest variation

Interest applied but failed report for advance & deposit

Advance pending for renewal (Limit Expired )

Frequent over limit CC/OD

Cash deposit /withdrawal beyond define limit

GL Error report

Failure of standing instruction


Debit in income head a/c or credit in expenditure head a/c

Inactive a/c reactivated

Overdue bills and bill returned

Temporary OD above sanction limit/excess allowed

Withdrawal against clearing

Maturity record deleted

Debit balance in deposit a/c.

Advance disbursed by transferring to deposit a/c.

Report on Large cash transaction/KYC

Change in master : check mainly for 29-30 Sept 16,

30-31March 17, 1-3 April 17

Account with negative balance

Used Excel as audit tool


Generally there is separate software for classification of NPA , some of the branch doing manually NPA classification in Customer Master

Exceptional report on change in NPA parameters Verify NPA report for March 16 ,Dec 16 & March 17 Report of irregular advances

BaNCs 24 (TCS) : Mostly NPA report generated from Same CBS systems e.g. CBI additional report generat in ALL in One Program

Finacle (Infosys) : Mostly Finacle base program bank generate NPA report from different software : BOB- Ascrome BOI – SASCAL Dena bank –D2K


Overdue stock/ book debts/QIS statement.

Overdue reviews/ renewals of credit limits.

Expired insurance/ under insurances of securities.

Overdue renewal of loan documents /inspection ofsecurities

TDRs where lien has been lifted.

Loans against TDR where lien not marked.

Cash balance above the cash retention limit.

Divergent trends in income/ expenditure of the currentyear may be analysed with the figures of the previousyear

Window dressing


Suspense accounts are adjustment accounts in

which certain debit transactions & Sundry Deposits

certain credit transaction are temporarily posted &

authorization is pending for approval

Check the nature of entries parked in such Accounts

Check any movement in such old balances and

whether the same is genuine and has been properly

authorized by the competent authority

Provision should be recommended against old

balances(beyond six months) unless recoverable


Mr. Hemant Parab - ctconline.org CA Hemant Parab... · NAME OF THE REPORT FINACLE BANCS 24 10 Loan...

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