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CANARA BANK

ORGANISATION AND METHODS SECTION  INSPECTION WING : HEAD OFFICE

BANGALORE - 560 001.

 Index                  : General : 112

Circular No.        : 242/2005

Date                     : 06.09.2005

                                A F E Z

 

Sub:  Employees' Account - Verification by branch-In-charge - Reiteration of existing guidelines - Additional controls - compliance of RBI guidelines

 

Synopsis 

       1. To facilitate the branch-in-charge to review all employees' accounts on a daily basis (as per existing guidelines), system will generate a report on the lines of exceptional transactions. 

      2.    Branch-in-charge to review all transactions in staff          accounts with the help of this report and accord             the certificate thereat.

 Attention of branches / offices is invited to HO Circular 147/01 dated 26.7.2001 and 97/02 dated 27.4.2002 wherein guidelines for verification of transactions in all employees' accounts by the branch-in-charge are detailed.

Reserve Bank of India, Department of Fraud Reporting and Monetary Systems in their Action Plan on anti-corruption measures 2004-05 for Public Sector Banks and Financial Institutions, has directed further streamlining the existing systems and procedures regarding operations in the employees' accounts and to build additional controls.  

After a review, while reiterating the existing guidelines, it is decided to strengthen the existing system to build additional controls as detailed hereunder to facilitate the branch-in-charge for a proper review.  

a. The system shall generate a list of transaction on all staff accounts by way of ‘exceptional transactions’ report on a daily basis.  Generation of a report is necessitated on account of the fact that many instances of employees related frauds indicate non-preparation of slips/vouchers.  Further, the report will include all operative accounts, individual as well as joint accounts of employees.  

b. With the help of this report, the branch-in-charge should review the slips / vouchers pertaining to all the employees' accounts.                                                                                                         

c. On the same report, the branch-in-charge to accord the certificate for having reviewed and ensured normalcy in all the operations. 

d. Basing on the daily report, a certificate in PRR-18 is to be furnished which will enable a control.  

Department of Information Technology Wing has already initiated necessary steps to ensure automatic generation of list of transactions in staff accounts daily in all the platforms. 

The above measures initiated are only to facilitate the branch-in-charge to accord the required degree of diligence in the matter and are accordingly advised to utilise the additional comfort provided to them for a proper and meaningful review.

All other guidelines in the matter remain unchanged.

ANIL D PRABHU

GENERAL MANAGER