RBI has ordered for a special audit of Bank of Rajasthan and its accounts. The RBI has mainly arrived at this decision after the Bank of Rajasthan agreed to give a large intra day overdraft to the Lucknow-based Sahara group which is beyond limits permitted. Deloitte Haskins & Sells has been appointed by RBI to audit the bank's lending policy, while Deloitte Touche Tohmatsu, the parent company has been appointed with the task of auditing the information security system of the bank. Such special audits are an exception and are only ordered for when the RBI has serious issues with a bank. Recently, the Bank of Rajasthan had been penalized with a sum of 25 lakhs by the RBI on account of rule violation. The bank had violated property transaction and anti-money laundering norms, had shown irregularities in the conduct of accounts of a corporate group and also failed to provide certain documents sought by RBI.
Deloitte Heskins & Sell's has been appointed to review whether the bank has made proper provisions for bad debts and also whether it has followed the asset classification norms set by the RBI. The superannuation benefits given by the bank to its employees is also a major area that needs check. 90 % of the employees of the bank receive salaries as per the bi-partite agreement that was signed between the Indian Banks Association and the member banks while the remaining 10 % do not get salaries ad per the norms, feels RBI. Deloitte Touche Tohmatsu has been given the major task of verifying that the information security system of the Bank of Rajasthan is as per the best practices standards set for the same and followed by other banks.
Deloitte Heskins & Sell's has been appointed to review whether the bank has made proper provisions for bad debts and also whether it has followed the asset classification norms set by the RBI. The superannuation benefits given by the bank to its employees is also a major area that needs check. 90 % of the employees of the bank receive salaries as per the bi-partite agreement that was signed between the Indian Banks Association and the member banks while the remaining 10 % do not get salaries ad per the norms, feels RBI. Deloitte Touche Tohmatsu has been given the major task of verifying that the information security system of the Bank of Rajasthan is as per the best practices standards set for the same and followed by other banks.
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