INDUSTRIAL RELATIONS SECTION Policy No.

: POLICY/78/2024
HUMAN RESOURCES WING Date : 23/04/2024
HEAD OFFICE: BENGALURU Index : Staff
Sub Index : IR

SUBJECT: POLICY ON STAFF ACCOUNTABILITY

The Policy on Staff Accountability of the Bank was introduced with an objective of having detailed
guidelines on staff accountability in different areas of bank’s functions with reasonable degree of
clarity and to spell out specifics in practical terms, vide HO Circular 72/2012 dated 10/03/2012.
Further, the same has been modified/ reviewed from time to time and communicated to branches/
offices, the latest being Cir no. IC/ 221/2023 dated 24.03.2023.

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Now, the policy has been reviewed with certain modifications/ changes as permitted by the
competent authority and are incorporated in the policy. The revised ‘Policy on Staff Accountability’

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for the Financial Year 2024-25 is furnished as Annexure-I to this Circular.

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All the staff members are advised to take note of the contents of the Circular.
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D SURENDRAN
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CHIEF GENERAL MANAGER

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TO: ALL BRANCHES/OFFICES OF THE BANK

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 POLICY ON STAFF ACCOUNTABILITY FOR FY 2024-25
INDEX
CHAPTER PARA NARRATION PAGE
NO.
1 1.0 ACCOUNTABILITY - INHERENT IN EVERY BUSINESS ACTIVITY 4
1.1 ACCOUNTABILITY 4
1.2 ACCOUNTABILITY DEFINED 4
1.3 OBJECTIVE OF STAFF ACCOUNTABILITY POLICY 4
1.4 ACCOUNTABILITY DETECTION MECHANISM 4
1.5 APPROACH 5
1.6 ACCOUNTABILITY GENERAL GUIDELINES 6
1.7 AREAS OF ACCOUNTABILITY 7
1.8 STRUCTURE FOR EXAMINING STAFF ACCOUNTABILITY 8
1.8.1 CREDIT MANAGEMENT/CREDIT MATTERS 8
1.8.1.1 IN RESPECT OF NPA ACCOUNTS 8
1.8.1.2 NPA ACCOUNTS WITH OUTSTANDING UPTO Rs.10 LAKHS 8

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1.8.1.3 NPA ACCOUNTS WITH OUTSTANDING ABOVE RS.10 LAKHS AND UPTO 10
RS.1 CRORE
1.8.1.4 NPA ACCOUNTS WITH OUTSTANDING ABOVE RS.1 CRORE UPTO RS.50 13
CRORE

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1.8.1.5 NPA ACCOUNTS WITH OUTSTANDING ABOVE RS.50 CRORE 15
1.8.1.6
1.8.1.7 QUICK MORTALITY ACCOUNTS :1
REFERENCE TO VIGILANCE WING FOR CVO SCRUTINY 15
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1.8.2 COMPLAINTS 16
1.8.3 IN RESPECT OF NON-NPA CREDIT MATTERS 16
1.8.4 NON CREDIT MATTERS 16
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1.8.5 FRAUD CASES 17

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1.8.6 PROCEDURE FOR CONDUCTING INVESTIGATION 19

2 2.0 CREDIT MANAGEMENT 20
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2.1 CREDIT MANAGEMENT 20

2.2 LENDING PROCESS - VARIOUS STAGES 20
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2.3 APPRAISAL, PROCESSING & RECOMMENDATION 21

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2.4 SANCTIONING AUTHORITY 22

2.5 DOCUMENTATION 22
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2.6 POST SANCTION FOLLOW-UP 23

2.7 RENEWAL OF CREDIT LIMITS 24
2.8 REVIEWING AUTHORITY 25
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2.9 SUPPRESSION OF MATERIAL INFORMATION/NON-REPORTING 25

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2.10 CONSORTIUM ADVANCES 26

2.11 ACCOUNTABILITY ON NPA'S DUE TO EXTERNAL FACTORS 26
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2.12 ECGC/CREDIT GUARANTEE CLAIM SETTLED ACCOUNTS 26

2.13 LOAN FAILURES AND ACCOUNTABILITY 27
2.14 WILLFUL DEFAULT BY BORROWERS 27
2.15 FIXING OF STAFF ACCOUNTABILITY IN OFFICIALS WORKING IN 27
FOREIGN BRANCHES/OFFICES
2.16 LAPSES AT RO / CO/ HO 28
2.17 REPORTING AND CONFIRMATION 28
2.18 ACCOUNTS UPTO RS.10 LAKHS INCLUDING GOVERNMENT SPONSORED 29
SCHEMES
2.19 ACCOUNTABILITY IN RESPECT OF TERM LOANS 29
2.20 ACCOUNTABILITY IN RESPECT OF CONTINGENT LIABILITIES 29
2A NON PERFORMANCE 29
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 2B NON COMPLIANCE OF STATUTORY OBLIGATIONS/ GUIDELINES 29
2C SPECIAL REPORTS DURING RBIA 29
3 3.0 NON CREDIT AREAS 30
3.1 AMBIT OF ACCOUNTABILITY IN NON-CREDIT AREAS 30
3.2 FIXING OF STAFF ACCOUNTABILITY IN CERTAIN AREAS 31
3.3 ADMINISTRATIVE OFFICE LEVEL 33
3.4 PENAL ACTION FOR TRADING IN CANARA BANK SHARES DURING 33
TRADING WINDOW CLOSURE PERIOD
3A COMMITTEE CONCEPT 34
4 4.0 FRAUDS 35
5 5.0 TIME LIMIT FOR INITIATION OF DISCIPLINARY PROCEEDINGS AND 36
ROLE OF INSPECTING OFFICIALS
6 6.0 FIXING OF STAFF ACCOUNTABILITY FOR RETIRING EMPLOYEES 37
7 7.0 PROCEDURE FOR CONDUCTING INVESTIGATIONS/ RE-INVESTIGATIONS, 38
REPORTING MECHANISM AND EXAMINING OF STAFF ACCOUNTABILITY
8 8.0 ASPECTS TO BE CONSIDERED IN EXAMINING ACCOUNTABILITY - 42

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DISTINCTION BETWEEN VIGILANCE AND NON-VIGILANCE CASES
9 9.0 DEALING WITH NON-VIGILANCE CASES 45
10 10.0 ROLE OF CONTROLLING OFFICES 45
11 11.0 ROLE OF INSPECTING OFFICIALS 46

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12 12.0 GENERAL GUIDELINES WITH REGARD TO IMPOSITION OF PUNISHMENTS 46

13 13.0
BY THE DISCIPLINARY AUTHORITIES
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GENERAL GUIDELINES ON PROCESSING REQUESTS RECEIVED UNDER 48
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SECTION 17(A) OF PREVENTION OF CORRUPTION (AMENDMENT) ACT,
2018
14 14.0 PROCEDURE FOR REFERRING THE CASES TO ADVISORY BOARD FOR 49
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BANKING AND FINANCIAL FRAUDS (ABBFF) CONSTITUTED BY CVC

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15 15.0 POWER TO ISSUE INSTRUCTIONS & RESIDUARY PROVISIONS 51

ANNEXURES – TIME LINES
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DETAILS PAGE NO
ACCOUNTS OUTSTANDING UPTO RS.10.00 LAKHS 53
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ACCOUNTS OUTSTANDING ABOVE RS. 10 LAKHS AND UPTO RS. 1 CRORE 54

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ACCOUNTS OUTSTANDING ABOVE RS. 1 CRORE AND UPTO RS. 50 CRORE (IF 55
ACCOUNT IS HANDLED AT RM& CR SECTION, CO)
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ACCOUNTS OUTSTANDING ABOVE RS. 1 CRORE AND UPTO RS. 50 CRORE (IF 56
ACCOUNT IS HANDLED AT CAM WING, HO)
ACCOUNTS OUTSTANDING ABOVE RS. 50 CRORE 57
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ACCOUNTS OUTSTANDING ABOVE RS. 30 CRORE FOR CVO SCRUTINY 58

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NON CREDIT MATTERS 59

ANNEXURES – FLOW CHARTS
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DETAILS PAGE NO
ACCOUNTS OUTSTANDING UPTO RS.10.00 LAKHS 60
ACCOUNTS OUTSTANDING ABOVE RS. 10 LAKHS AND UPTO RS. 1 CRORE 61
ACCOUNTS OUTSTANDING ABOVE RS. 1 CRORE AND UPTO RS. 50 CRORE 62
ACCOUNTS OUTSTANDING ABOVE RS. 50 CRORE 63
ANNEXURES – FORMATS
DETAILS PAGE
NO
ANNEXURE – I - FORMAT FOR PRELIMINARY REPORT - APPLICABLE FOR ACCOUNTS WITH 64
OUTSTANDING UPTO RS.10 LACS AS ON THE DATE
ANNEXURE-II - BRIEF REPORT FOR PRELIMINARY EXAMINATION BY COMMITTEE 67
ANNEXURE-III – FORMAT FOR STAFF ACCOUNTABILITY REPORT 72
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ANNEXURE IV – DETAILED REPORT FOR PRELIMINARY EXAMINATION BY THE COMMITTEE 78
ANNEXURE V - INVESTIGATION REPORT FOR THE ACCOUNTS OUTSTANDING UPTO RS. 1.00 CRORE 86
ANNEXURE VI FORMAT OF INVESTIGATION REPORT FOR THE ACCOUNTS OUTSTANDING ABOVE 93
RS. 01.00 CRORE
ANNEXURE VII FORMAT OF INVESTIGATION REPORT FOR THE NON-CREDIT MATTER 116
ANNEXURE VIII CHECK LIST OF ITEMS FOR MATTERS RELATING TO SECTION 17A OF THE PC ACT 121
1988
ANNEXURE IX RANKS OF POLICE OFFICER FOR SEEKING PREVIOUS APPROVAL UNDER SECTION 123
17A IN RESPECT OF DIFFERENT CATEGORIES OF PUBLIC SERVANTS
ANNEXURE X REFERENCE TO ADVISORY BOARD FOR BANKING AND FINANCIAL FRAUDS 124
(ABBFF)
ANNEXURE XI FORMAT FOR REFERRING NPA ACCOUNTS WITH OUTSTANDING RS. 30.00 131
CRORE AND ABOVE SLIPPED DURING THE QUARTER

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 POLICY ON STAFF ACCOUNTABILITY

1.0 ACCOUNTABILITY - INHERENT IN EVERY BUSINESS ACTIVITY:-

1.1 The term 'Accountability' has over the years come to acquire a negative connotation in the
minds of employees and officers. However, the dictionary definition of the expression
'accountable' reads:
"Bound to give account; responsible (for things, to persons); explicable; hence
“ACCOUNTABILITY".
Thus, far from being negative, the term 'Accountability' merely means that one is responsible
for one's actions and omissions. It is inherent in any business that every employee whatever
be his rank, is prima facie accountable / responsible for every act of his.

1.2 Accountability Defined:

The term ‘Accountability’ means that one is responsible for one’s actions and omissions.
Accountability is inherent when there is delegation of power or delegation of duty. In a large

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organization where number of people are vested with various levels of powers, it is fundamental
and unavoidable that they should be responsible for their actions. As long as the actions are within
the framework of the laid down guidelines, rules, regulations and procedures and are in the interests
of the bank, they do not attract accountability.

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Every employee is duty bound to discharge work faithfully in accordance with:
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a. Systems and procedures laid down;
b. Rules and Regulations in force;
c. Guidelines whether general or specific; &
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d. To work within the authority delegated or when such authority is exceeded, with the approval
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of appropriate authority.

Due diligence (or absence of negligence) must be seen to have been exercised in one's discharge of
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duty at the originating level where the responsibility cast is direct, or at the supervisory / controlling
level where the responsibility, though indirect, becomes constructive or constitutional to bear.
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The actions with malafide intention even if within the delegated authority or actions without due
diligence or actions exceeding delegated authority without the approval of the appropriate authority
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will not qualify for indemnity or absolution from staff accountability even though there may not be
any monetary loss to the bank.
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Additionally, staff accountability is equally required to cover lapses on administrative matters where
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gross negligence or ill motive is manifest vis-a-vis non-observance/ compliance of laid down norms
and procedures both internal as well as by external authorities such as RBI, IBA, CVC, DFS etc.
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1.3 Objective of Staff Accountability Policy

The aim of the staff accountability policy should be to protect employees for their bonafide actions
and at the same time make them accountable for any wrongdoing or any inaction on their part. Staff
Accountability is also required to identify and punish only those employees who are prima facie
responsible for the lapses of non-compliance with the laid down systems & procedures or
misconduct and/or non-adherence to the “due-diligence” norms. Within this, there would be a
subset of cases of vigilance aspects involving connivance or corruption.

1.4 Accountability Detection Mechanism:

Accountability can be identified from the following sources:

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 a) Inspection Report of the Branches/ Controlling Offices;
b) Report of Internal/ External Concurrent Auditors/ Statutory Auditors, RBI Inspectors;
c) Charge taking report from the new incumbent;
d) Branch visits/interface Review of NPAs, Inspection Reports, periodical returns, Year-end
statements, etc.;
e) Complaints;
f) Whistle –blowing;
g) Loan Card, NF 606, NF607 submitted by the Branch;
h) Offsite Transaction Monitoring Reports;
i) Irregularities on account of warning signal by controlling authorities;
j) Special Reports;
k) Any other source.

1.5 Approach

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‘Staff Accountability’ should not necessarily imply that each and every act will be subject to scrutiny
for the sole purpose of punishment. Extant guidelines do not mandate assessment of Staff
Accountability for each and every NPA. RBI Circulars do, however, require assessment of Staff
Accountability in the following:

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a) Compromise or Negotiated Settlements of NPAs – DBOD No BP.BC.81/21.01.040.95 dated

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28.07.1995.
b) Guidelines on Purchase/Sale of Non-Performing assets – DBOD dated 13.07.2005
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c) In the matters relating to transfer of borrowal accounts from one bank to another, the policy
may include norms relating examination of staff accountability especially in cases of Quick
Mortality of such cases after takeover- DBOD dated 10.05.2012
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d) With a view to keep the incidence of corruption and malpractice under check, there is a need
for fixing Staff accountability aspect of irregularities, malpractices etc. at all levels, at the
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appropriate time – RBI Circular DOS. No. PP.BC.20/06.03.026/96-97 dated 01.11.1996.

e) RBI Master Directions of transfer of Loan Exposures dated 24.09.2021
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f) RBI Master Directions on Frauds

RBI guidelines as mentioned above must be followed without any deviations.
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The motive of the Staff Accountability is not to discourage the exercise of initiative and decision
making. The approach for staff accountability should be to instill confidence amongst the officials
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for decision making and to examine the reasons for the account turning into NPA and for non-
recoverability of bank funds. Staff accountability exercise is to be carried out in the light of
circumstances prevailing at the time the events occurred and not with benefit of hindsight. Isolating
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the specific cause(s) for the loss is an important step in fixing staff accountability.
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If the cause of the NPA is essentially due to external factors and beyond the control of the Bank e.g.
change in Government Policy, revised environmental norms, natural calamities, non-release of
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government subsidy/grant, takeover of land or securities by the government agencies, etc., it should
not attract staff accountability.

Branches/Offices rely on certain Third party reports while processing/sanctioning loan proposals
or while handling the loan account. These third parties are service providers who are empaneled by
the bank/IBA based on their Qualifications and credentials such as Advocates, Valuers or hold
professional qualification such as CAs etc. While the reports are generated externally, bank officials
also have a role to play in terms of processing such reports. By various Circulars/Guidelines, Bank
specify the role of the officials for obtaining/handling the reports of such intermediaries/Third Party
service providers. For instance, UDIN verification from the ICAI portal may be mandatory. Various
Circulars/Guidelines issued by the Bank for obtaining/handling of reports such as for Title
Investigation, Valuation, Audited Accounts, Legal Opinion, Stock Audit are to be followed.
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1.6 ACCOUNTABILITY GENERAL GUIDELINES:

While accountability encompasses all transactions and administrative actions, its predominance is
more visible in the credit management. Lending is a primary function of a banker involving
optimization of the risk return trade off. Hence, the possibility of failure of loans cannot be ruled
out. The very business of banking revolves around risk taking and risks of varying degrees present
themselves in almost every transaction that a banker undertakes.

The elemental aspect of conducting Accountability Study is to ascertain the reasons for account
becoming NPA and the reasons for non-recoverability of bank dues which will facilitate in
engineering systemic improvements to bolster the structure and process of Banking.

Against this backdrop, the following broad principles may be reckoned with, while examining
accountability connected with credit lapses:

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 While accountability has to be examined in respect of losses caused to the organisation,
every loss either pecuniary or non-pecuniary need not necessarily become the subject
matter of a vigilance enquiry.

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 It would be quite unfair to use the benefit of hindsight to question the technical merits of

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managerial decisions from vigilance point of view.
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 A distinction has to be drawn between a business loss, which has arisen as a consequence of
a bonafide commercial decision, and an extraordinary loss, which has occurred due to any
malafide, motivated or reckless performance of duties. While the former has to be accepted
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as a normal part of business and need not be proceeded with, the latter has to be viewed
adversely and dealt with under the extant disciplinary procedures.
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 Responsibility needs to be fixed where it lies e.g. in an account turned to NPA due to
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improper monitoring, accountability should not be ascribed on the officials involved in the
sanction level.
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 Examination of lapses should not be done with hindsight and circumstances prevailing at the
relevant time must be taken into account.
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Considering all the above aspects, the following guidelines may be observed while examining /fixing
staff accountability and initiating/ waiving further action based on the findings:
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 The Bank is a commercial organization where decisions are taken on the basis of available
data and each decision contains some element of fair banking risks. In the process, there is
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possibility for genuine errors of judgment/decisions taken on purely commercial

considerations and in good faith after following the procedures. Such errors and decisions
need to be examined with an absolute professional approach.

 The aim of the Bank in conducting the exercise of staff accountability is to safeguard the
larger interests of the Bank. To that end, the first step that ought to be taken should be to
identify the areas where the rules and procedures designed to protect the interests of the
Bank were not being followed.

 Irregularities pointed out in various Audit/Inspection reports during the preceding Four
years will act as a basis of identifying the areas of lapses. Only the lapses attributed to the

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 officials, who have a contributory effect and have direct bearing on the account becoming
NPA and thereby cause monetary loss to the organization shall be taken cognizance of.

 Bonafide mistakes shall be viewed as errors of judgment in the usual course of business and
a clear distinction has to be made between the acts done in good faith without malafide
intentions and acts with malafide intentions which shall be dealt with seriously.

 Wherever it is found that staff lapses by way of acts of commission or omission have not
contributed to the failure of the credit facility, the mere presence of such lapses should not
become a cause for proceeding against the employee concerned.

 The nature of omission / commission, the circumstances under which it occurred, the track
record of the person involved, the extent of relationship of the omission/commission to the
causes of the loss, and the kind of message that is sought to be conveyed to others in respect
of such lapse(s) are the relevant factors that should be weighed before taking a decision on
the nature of action that is to be taken against the errant staff.

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 The aim of punishment should be to instill a sense of guilt and resultant repentance on the
part of the staff / official who committed the lapses, so that in future, he will conduct himself
in a more responsible manner.

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 Further the punishment should be demonstrative and should act as a deterrent to other staff
/ official from resorting to such omission/commission.
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 While examining the staff accountability aspect, the competent authority should take into
consideration the job role/area of responsibility of different officials as enumerated in this
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policy.
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 While determining the course of action in respect of specific credit lapses in individual cases,
the performance record of credit functionaries involved in recommending and sanction of
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credit facilities may be taken into account for objective examination of accountability
aspects. If the percentage of erroneous decision is not large, lapses attributed on the official
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involved could be viewed in that angle.

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 Controlling offices who have direct access to the track record of the Officer have to take
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cognizance of this while examining the staff accountability aspects. Whether the official
against whom Staff accountability is examined, has been responsible for any omission and
commission on earlier occasion too, thereby exposing the funds of the bank to the risk of loss
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is one of the criteria while recommending for further action.

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 At Corporate Office level, only such lapses attributed to the official are to be taken cognizance
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of, which have a contributory effect / or a direct bearing on the account becoming NPA, and
thereby causing monetary loss to the organization.

 In cases of accountability on the part of Board level officials, CVO, Department of Financial
Services (DFS) will be examining the same.

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Areas of Accountability:

Irregularities or lapses may originate from any of the following areas of operation:

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 a) Credit Management/Credit Matters including processing, recommending, sanctioning, reviewing,
disbursement, pre and post sanction visit, documentation, monitoring, etc.
b) Non-Credit Areas including irregularities/lapses which lead to commission of Frauds and may
include theft, embezzlement, cheating/ forgeries, any unauthorized debit & Credit/ violation of
guidelines & statutory requirements / wrong usage of Credit Parking GLs or Debit Parking
GLs/Internal accounts or any other head etc.;

1.8 STRUCTURE FOR EXAMINING STAFF ACCOUNTABILITY:

Examination of Staff Accountability can arise in respect of following:

A) CREDIT MANAGEMENT/CREDIT MATTERS

B) NON-CREDIT MATTERS/AREAS

1.8.1 CREDIT MANAGEMENT/CREDIT MATTERS:

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The structure of accountability should factor in recent developments in banking.
Appraisal and sanction of retail and home loan is rapidly moving away from branches to
loan factories, loan processing hubs and online platforms. Appraisal is being done by
algorithms based on data and machine learning, wherever applicable. The role of

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branches has become more about servicing and monitoring. In the context of the above

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background, a four-tier structure is now envisaged for staff accountability as under:
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a. NPA accounts with outstanding liability upto 10 Lacs.

b. NPA accounts with outstanding liability above Rs 10 Lacs and upto Rs. 1 Crore.
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c. NPA accounts with outstanding liability above Rs 1 Crore and upto Rs. 50 Crores.
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d. NPA accounts with outstanding liability above Rs. 50 Crores.

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With regard to Credit Management/Credit matters the following are the

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guidelines/procedures:
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1.8.1.1 IN RESPECT OF NPA ACCOUNTS:

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Once an Account becomes NPA every effort should be made to recover the entire overdue
and upgrade the Account. However, it should be ensured that within 45 days from the end
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of the quarter in which the Account has become NPA, the reasons why the account has
slipped to NPA has to be examined as per the guidelines given below. Recovery measures
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shall be simultaneously carried out by submission of Loan Card i.e., NF 606/607 as per
Recovery Policy of the Bank.
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The exercise of examining the reasons for loan account slipping to NPA, would be carried
out by Credit Administration & Monitoring Wing (CAM Wing), Head Office through the
respective CR & M Section of the Circle Office and CRM Section of Regional Office. After
examination of the Preliminary Report/ Staff Accountability Report/Investigation Report,
if the analyses reveal that the lapses from staff angle have contributed to the account
slipping to NPA, the matter should be taken to logical conclusion from staff angle as
prescribed in the following Paras.

1.8.1.2 NPA ACCOUNTS WITH OUTSTANDING UPTO Rs.10 LAKHS:

Small value Loans of upto Rs. 10 Lacs are generally collateral free as mandated by
RBI/Government guidelines. Generally, these loans are sanctioned to small units, small
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 traders, small and marginal farmers and also for various activities under different
Government Schemes. In many of these cases, the borrowers are new to credit i.e. new to
borrowing from the formal banking system and lack financial literacy. This class of
borrowers is also unaware about credit bureau scores and reporting (e.g. CIBIL) and
consequence of default on credit record. Often, they do not have a documented financial
background or a permanent place of business/residence. In these types of activities, even
a slight change in the circumstances including a family health and crisis or prolonged
shutdown or death in the family lead to disruption in daily cash flow resulting into default
on Bank loan, thereby turning the loan into NPA. These accounts are large in number but
do not constitute a major percentage of the NPA portfolio by amount.

Increasingly most of the loans sanctioned in this range are template based with rapidly
diminishing discretion available to the opening officials. Moreover, examining staff
accountability in such low value accounts involves disproportionate costs, using up of
Management bandwidth especially at middle level and it affects a large cohort of officers
as the number of individual cases has been large. This puts a strain on the already scarce

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resources.

Generally, no accountability will therefore be examined with respect to accounts with

liability outstanding up to Rs.10 lakhs as on date of NPA. This would include pre-approved

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digital personal loans with instant disbursement where pre-sanction/post sanction visits

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However, there are some exceptions to this. In the following cases the staff accountability
has to be examined:
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1. Where complaints etc. emanate indicating existence of malaifide intention on the

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part of the employees. However, if pseudonymous/anonymous complaints are

there, the same should be dealt as per CVC guidelines.
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2. In case of Special Reports/RBIA reports/Other audit reports/Controlling Offices

report which indicate serious irregularities in the advances portfolio of the
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branch.
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3. In case of accounts with sanctioned limit up to Rs.10.00 lacs, if the fresh slippages
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(NPA) during the Financial Year in a branch exceeds 10% in value or 20% in
number in this portfolio of loan accounts, in such instances, staff accountability
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exercise would have to be mandatorily initiated for respective credit portfolio of

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the branch and take appropriate action. However, the accounts which have
already completed 4 years in standard state should be excluded while arriving the
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above percentage.

4. Where an account has been reported as fraud/suspected fraud by the branch.

In respect of cases falling under Category 1, 2 & 4, the RO/CO Head will depute an Official
for submitting Preliminary report as per Annexure I. In respect of accounts falling under
category 3, CR & M Section will monitor the same on a quarterly basis and will depute an
official for submitting preliminary report after obtaining permission from CO head. If on
the basis of Annexure I, any fraud is observed, matter will be referred to Inspection Wing
for conducting Investigation in the matter after obtaining due permission from the Circle
Head.

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 All accounts coming under sanctioning powers of branch/RAH/SME SULABH shall be
placed before SASC-RO by CRM Section, RO and accounts coming within the sanctioning
powers of ROs shall be placed before the SASC - CO by CR & M Section, CO.

Upon receipt of the Preliminary Report/Investigation Report, the following procedure is

to be followed:

A. While analyzing Preliminary Report/Investigation Report, the respective

committee will look into the fact whether any case of malafide or intentional and
deliberate negligence on the part of any Staff member is observed. In the absence
of any such malafide or intentional and deliberate negligence the committee will
order for closing the matter from staff angle. With regard to matters placed to
SASC-RO, CRM Section, RO shall give a confirmation to CR & M Section, Circle Office
for having closed the matter from Staff Angle.

B. In case of malafide or intentional and deliberate negligence is observed on the part

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of any staff, Explanation should be called by CR & M Section, CO from the officials
on whom lapses are crystallized. For Accounts placed before SASC, RO, CRM
Section, RO shall forward draft explanation letter to CR & M Section, CO. After
obtaining replies, the following is to be adhered to:

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(i) In respect of Accounts falling within the jurisdiction of SASC-RO, the CR &
M Section, CO will forward the Explanation called and replies received to
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CRM Section, RO for placing the matter before SASC-RO.

(ii) In respect of Accounts falling within the jurisdiction of SASC-CO, CR & M

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Section, CO will place the matter to SASC-CO.

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(iii) CRM Section RO/CR & M Section, CO shall place a self contained note
before the respective committee who will analyze the same and if lapses
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are not crystallized the committee will order for closure of the matter from
staff angle. In such case, the employee from whom explanation has been
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called should be suitably informed about the closure of the matter.

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(iv) However, if the lapses are crystallized, respective CRM Section, RO/CR &
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M Section, CO will forward the matter to HRM Section, CO for placing the
IAC note. CRM Section, RO shall route the papers through CR & M Section,
CO for forwarding it to HRM Section, CO.
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1.8.1.3 NPA ACCOUNTS WITH OUTSTANDING ABOVE RS.10 LAKHS AND UPTO RS.1 CRORE:

This category of NPA accounts generally include advances like Housing Loans, Car Loans,
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Mortgage Loans, SME Loans, Agriculture Consultancy Centre (ACC), Agriculture Loans and
other Retail Portfolio. Our Bank has well-structured processes for sanctioning of these
loans and has processing offices for standardized appraisal based on algorithms and data
for faster sanction, wherever applicable. Branches/RAHs/MSME Sulabhs tend to be
involved in documentation, disbursement, monitoring and follow-up. Staff accountability
in these accounts will also be done by SASC-RO/SASC-CO depending on Sanctioning
Authority of the loan account.

Accountability for appraisal/ sanction shall lie on the part of the Bank officials for
accounts in category 1.8.1.2 or this category which have been sanctioned through end to
end, contact less/ digital lending modes has to be done on a differentiated manner. In case
of pre-approved digital business loans, accountability will be limited to role of officials in
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 activities carried out at operating level as branch officials may be responsible for
physically completing documentation prior to disbursement. Similarly, while initial or
regular inspections for such digital loans may have been waived, inspections are usually
required to be carried out based on triggers from Early Warning Signals/ Early Warning
Systems (EWS) or for SMA accounts. Failure to do so would be within the remit of Staff
Accountability.

Digital platforms are at times being used only to generate leads prefetching certain data
electronically including IT/ GST returns etc. However, processing thereafter is not end to
end digital. In such cases, accountability would not arise for pre-fetched data. As all other
activities are in line with other loans, accountability procedures would also be similar.

Staff accountability in these accounts may be done by SASC-RO/SASC-CO, depending upon

the sanctioning authority of the loan account, to carry out a preliminary examination and
filter the accounts where staff accountability is to be examined. For preliminary
examination by the Committee, a brief report as per Annexure II shall be submitted to the

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Committee by CRM Section RO/CR & M Section CO, covering the following aspects:

(a) Summary profile of the account

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(b) Reasons for account turning NPA

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(c) Observations in the previous inspection/ audit reports for a period of 4 years as
12
on the date of NPA including compliance thereof and

(d) Chart of compliance of terms of sanction.

4

The Committee shall take a view based on the brief report presenting the position of
02

internal control and inspection/audit reports. The Committee would assess whether a
case for examination of staff accountability exists. In all cases where staff involvement is
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perceived or critical non-compliance are observed, the staff accountability is to be

examined by deputing an official who is not related to the account. The deputed official
6

should submit Staff Accountability Report as per Annexure III. A clear distinction between
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administrative action and disciplinary action should be made to ensure that bonafide
actions are protected. In all other cases the matter will be closed by the respective
11

committee giving reasons for the same.

While conducting the Staff Accountability, amongst others, the following points should
4

also be factored:
38

 Reasons for account turning NPA.

 Observations contained in previous Inspection/ Audit Reports for a period of four
81

years as on the date of NPA to be examined.

 Past record of the concerned officials of the branch who have dealt with the said
account.
 Number of accounts slipped to NPA in the branch.
 Any Special Report/ Flash Report pending in respect of the said NPA account.
 Examination of the NPA status report submitted by the Branch every quarter as
also the Internal Audit Reports.

With respect to accounts with outstanding Liability above Rs. 10.00 Lakhs and Upto Rs.
1.00 Crore the following procedure will be followed:

11
 I. Wherever the committee orders for Staff Accountability report, the said Staff
Accountability Report shall be examined by CRM Section, RO/ CR & M Section,
CO as the case may be. The concerned CRM Section, RO/ CR & M Section, CO
shall place a self-contained Note based on the Report to the concerned
committee to take a view on accountability from staff angle. If the committee
after analyzing the Staff Accountability Report, desires that further
information is required, they may ask for necessary clarification in the matter
from the official who submitted the report.

II. If on the basis of Staff Accountability report fraud is observed/suspected,

matter to be investigated by inspection wing after placing before the
committee, as per guidelines. The matter will be referred to Inspection Wing,
HO after obtaining permission from the Circle Head.

III. If on the basis of Staff Accountability Report/Investigation Report no lapses

are observed, the committee shall advise the CRM Section, RO/CR & M Section,
CO for closure of the matter from staff angle.

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IV. If lapses are observed based on Staff Accountability Report/Investigation
Report, the concerned committee may order for calling explanation from the
concerned employees. In this regard the following procedure for calling

1
explanation and submitting IAC is to be followed:

i)
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Explanation should be called by CR & M Section, CO for the officials on
12
whom lapses are crystallized. In respect of accounts falling within the
jurisdiction of SASC-RO, CRM Section RO shall forward draft explanation
letter to CR & M Section, CO for calling explanation.
4
02

ii) After obtaining replies, the following is to be adhered to:

a) In respect of Accounts falling within the jurisdiction of SASC-RO, the CR &

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M Section, CO will forward the Explanation called and replies received to CRM
6

Section, RO for placing the matter before SASC-RO.

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b) In respect of Accounts falling within the jurisdiction of SASC-CO, CR & M

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will place the matter to SASC-CO.

c) CRM Section RO/CR & M Section, CO shall place a self contained note
4

before the respective committee who will analyze the same and if lapses are not
38

crystallized the committee will order for closure of the matter from staff angle.
After obtaining orders of committee the procedure as enumerated in Point III
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above should be followed. In such cases the concerned employees from whom
explanation is called should be suitably intimated about closure of the matter.

d) If the lapses are crystallized, the respective committee shall order for
placing the IAC note in the matter. Respective CRM Section, RO/CR & M Section,
CO will forward the matter to HRM Section, CO for placing the IAC note. CRM
Section, RO shall route the papers through CR & M Section, CO for forwarding it
to HRM Section, CO.

V. The details of action taken/Closure shall be informed to CAM Wing, HO for MIS
purpose.

12
1.8.1.4 NPA ACCOUNTS WITH OUTSTANDING ABOVE RS.1 CRORE UPTO RS.50 CRORE:

Accounts falling in the above category i.e. above Rs.1.00 Crore and upto Rs.50.00 Crore
are mostly credit facilities sanctioned to business units warranting examination by a
specialised unit within the Bank well versed with the systems and procedures of the Bank.
Such loan accounts are mostly loans to business units which require regular monitoring
and due diligence. NPA accounts in this range of overall exposure shall undergo a
preliminary examination by a Committee constituted at one level higher than the sanction
level i.e. accounts sanctioned at Regional Office will be taken up at SASC-CO, those at Circle
Office/Head Office at SASC-HO.

For preliminary examination by the committee, a detailed report as per Annexure IV shall
be submitted to the committee, by CR & M Section CO/CAM WING HO, covering the
following aspects:

a. Profile of the account,

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b. Reasons for account turning NPA,

c. Observations in the previous inspection/ audit reports for a period of 4 years as

1
on the date of NPA including compliance thereof,

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d. A chart of compliance of terms of sanction, of disbursement, monitoring and
12
reviews and possibilities of recovery/upgrade.

Preliminary examination by the committee shall be based on audit reports and other
4

internal reports viz. Inspection, monitoring and available reports pertaining to the
account/sanctioning level etc. Audit vertical (i.e. Inspection Wing) shall provide all
02

requisite inputs for this preliminary examination.

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Credit decision in our Bank is always process oriented in which Board approved policies
and processes are followed by the sanctioning authorities. When an account turns NPA,
6

the deficiency could be attributable to the sanction process, documentation, disbursement

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or in monitoring. If on the basis of preliminary examination, the committee finds any

material lapses in any of the above process, the account may be referred at the discretion
11

of the committee to Inspection Wing for conducting Investigation in the matter. If no

material lapses are observed, the respective committee shall order a closure of
examination of the Staff Accountability and for final closure of the matter, CR & M
4

Section/CAM Wing HO shall place the matter before Circle Head/Wing Head for closure.
38

However, with respect to accounts with outstanding liability of Rs. 30.00 Crores and above
the committee shall forward the necessary documents to the Chief Vigilance Officer (CVO)
for scrutiny.
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Assessment of Staff Accountability is to be done based on internal control and

Inspection/Audit system of the bank. This flows from RBI guidelines from 1996 and
accepts the underlying principles that the staff accountability examination upto Rs. 50.00
Crores is to be based on the Internal audit systems. Once a case is referred for
Investigation, Investigating Officer may rely upon audit report of previous 4 years as well
as other Investigation/Inspection reports mentioned below:

a) Branch Inspection Report

b) Concurrent Audit
c) Stock Audit
d) ASM (Agency for Specialised Monitoring)
13
 e) Legal Audit Report
f) Credit Audit Report
g) Special Report
h) Control Returns relating to Monitoring etc. along with internal/ RBI audit report
& conduct of the account for the purpose of examining Staff Accountability.
i) Any other available relevant report.

If during the above period of 4 years, available information is not sufficient, the
Investigation Officer may call for/collect additional information from the
Branch/Controlling Office etc. upon conclusion of analysis and shall submit the report to
the committee which has made initial reference to it.

After receipt of Investigation Report with respect to accounts with outstanding Liability
above Rs. 1.00 Crore and Upto Rs. 50.00 Crores the following procedure will be followed:

A. Accounts falling within the Sanctioning Powers upto Regional Office Level.

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The said Accounts will be scrutinized by the SASC committee at Circle Offices and
the following procedure is to be adopted:

I. Wherever no lapses are observed, the committee shall advise the CR & M

1
Section, CO for closure of the matter from staff angle and CR & M Section, CO

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shall place a note to the Circle Head for closure.
12
II. If lapses are observed based on Investigation Report, the committee may
order for calling explanation from the concerned employees and after calling
for explanation, the CR & M Section, CO will submit a Self-Contained Note, duly
4

analyzing the submissions of the Officials concerned, to the committee.

02

Wherever no lapses are crystallized, the procedure mentioned above in Para I

may be followed and in such cases the concerned employees from whom
explanation is called should be suitably intimated about closure of the matter.
/2

However, wherever lapses are crystallized against Officials, the committee

shall order for submitting IAC Note in the matter and the concerned CR & M
6

Section, CO shall forward the necessary papers to HRM Section for placing IAC
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in the matter.
11

III. The details of action taken/closure should be informed to CAM Wing for MIS
purpose.
4

B. In respect of Account beyond the Sanctioning Powers of Regional Offices

38

The said Accounts will be scrutinized by the SASC committee at Head Office and
the following procedure is to be adopted:
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I. Wherever no lapses are observed based on Investigation Report, the committee

shall advise for closure of the matter from staff angle. The CAM Wing, HO shall
place a note to Wing Head, CAM Wing for closure of the matter. Intimation in this
regard shall be given to CR & M Section, CO.

II. If lapses are observed based on the Investigation Report, the committee shall order
for calling explanation from the erring officials and explanation will be called from the
officials concerned by CAM Wing, HO under information to HRM Section, CO and CR &
M Section, CO. Upon analysis of reply submitted by the official and after placing the
matter before the committee, the following is to be adhered:

14
 i) If lapses are not crystallized, the committee shall advise for closure of the
matter and the procedure as mentioned in Point I above shall be followed.
In such cases the concerned employees from whom explanation is called
should be suitably intimated about closure of the matter.

ii) If lapses are crystallized, the committee shall order for submitting IAC in
the matter and the CAM Wing, HO shall forward the papers to HRM
Section, Circle Office through CR & M Section, Circle Office for placing IAC
Note in the matter.

C. With respect to accounts having outstanding liability of Rs. 30.00 Crores and
above the matter will be referred to CVO for scrutiny either before closing the
matter or before calling for explanation.

D. For the accounts to be placed before SASC – HO by CAM wing, the concerned Circle

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Office to provide details in prescribed format (Annexure - IV) under Circle Head
signature to CAM Wing HO, to enable them to place the same before SASC – HO.

1.8.1.5 NPA ACCOUNTS WITH OUTSTANDING ABOVE RS.50 CRORE:

1
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In respect of NPA accounts with outstanding above Rs.50 Crore, the matter will be
invariably got investigated by CAM Wing through Inspection Wing, HO. CAM Wing shall
12
take up with Inspection Wing for Investigation.

On receipt of Investigation Report, CAM Wing, HO shall place the matter before SASC-HO
4

and thereafter forward the papers to CVO for scrutiny. With regard to closure/calling
02

explanation/placing the matter to IAC, the procedure as mentioned in para 1.8.1.4 (B) is
to be followed.
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1.8.1.6 REFERENCE TO VIGILANCE WING FOR CVO SCRUTINY:

6

A. List of all NPA outstanding above Rs. 30.00 Crores and above, shall be reported to
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Vigilance Wing, HO on quarterly basis by CR & M Section, Circle Office under

11

intimation to CAM Wing, HO, in the prescribed format (Annexure - XI)

B. Similarly, the Scrutiny of accounts with outstanding balance of Rs. 30.00 Crores
and above is to be mandatorily forwarded to CVO for scrutiny along with
4

necessary documents as under:

38

a) Accounts upto the jurisdiction of SASC – CO: Necessary documents like

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Detailed Preliminary Examination Report/Investigation Report, SASC-CO note,

etc. to be forwarded to CAM Wing for forwarding the same to Vigilance Wing for
Scrutiny.

b) Accounts within the jurisdiction of SASC – HO: CAM Wing, HO after placing
the matter before SASC - HO shall forward the same to Vigilance Wing for scrutiny
along with all necessary documents like Detailed Preliminary Examination
Report/Investigation Report, SASC-HO Note etc.

15
1.8.1.7 QUICK MORTALITY ACCOUNTS:

In case of Quick mortality accounts (slipped on account of financial reasons only)

invariably Investigation is to be conducted. However, accounts slipping into NPA on
account of technical reasons/CBS issues shall be excluded from the purview of
Investigation. The definition of “QUICK MORTALITY” for the purpose of this policy shall
be the same as defined under Circulars/ guidelines of the Bank relating to quick mortality,
issued from time to time.

Investigation has to be mandatorily conducted by Inspection Wing. In respect of accounts

coming within the sanctioning powers upto RO level, CR & M Section, Circle Office has to
directly take up with Inspection wing for Investigation along with Preliminary Report,
through Circle Head under intimation to CAM Wing, HO and with regard to accounts
coming under the sanctioning powers of Circle Office/Head Office the matter will be
referred for investigation by CAM Wing, HO after obtaining permission from Wing Head.
1.8.2 COMPLAINTS:

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Wherever the complaints are specific in nature and Vigilance angle is discernible, the
matter may be investigated. In this regard, the CVC / DFS guidelines with respect to
various types of complaints shall be adhered to.

1
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1.8.3 IN RESPECT OF NON-NPA CREDIT MATTERS: 12
Generally, no accountability will be looked into for the accounts which are in Standard
Category. However, in special cases with certain exceptions, Staff Accountability will be
looked into in Standard Accounts. Few examples where Staff Accountability may be
4

looked into are Special report given by Inspecting officials during RBIA, Gross
irregularities observed in RBIA, Complaints received against customers/Staff alleging
02

irregularities in the accounts, Gross irregularities observed during Concurrent

Audit/Statutory Audit, Fraud committed by borrower/Staff etc.
/2

Wherever, accountability should be looked in Standard Accounts, same process as

6

enumerated for NPA accounts to be followed. The CRM Section, RO/CR & M Section, CO/
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CAM Wing HO will be the nodal section for the same.

11

If SASC-RO/CO/HO identifies lapses for standard accounts, same process as enumerated

for NPA accounts is to be followed and IAC to be placed.
4

1.8.4 NON CREDIT MATTERS:

38

In respect of Non-Credit matters, the same shall be handled by HRM Section at Circle
Office/ HOSA/ SAS of Inspection Wing for examination of Staff Accountability. The ambit
81

on staff Accountability in Non-Credit matter is mentioned in para 3.0 below. Such matters
shall be reported to the respective HRM Section at Circle Office/ HOSA/ SAS of Inspection
Wing and concerned HRM Section at Circle Office/ HOSA/ SAS of Inspection Wing shall
place a Preliminary Note to the Circle Head/ Wing Head duly appraising the facts of the
case. Circle Head /Wing Head shall either order for investigation or order for closure of
the matter from staff angle. Wherever Investigation is ordered, HRM Section at Circle
Office/ HOSA/ SAS of Inspection Wing shall get the matter investigated through any
Official in the panel. In this regard, HRM Section at Circle Office/ HOSA/ SAS of Inspection
Wing shall maintain a panel of Investigating Officers for this purpose among the Officials
working in the Circle/ Wing. The format for conducting Investigation is as per Annexure
VII. In respect of fraud Non-Credit matters, the concerned HRM Section at Circle Office/

16
 HOSA/ SAS of Inspection Wing shall take up the matter with Inspection Wing, HO for
Investigation with permission from Circle Head / Wing Head.

If on investigation conducted by the Circle Office/ Wing, it is revealed that there may be
possibility of fraud even though no conclusive evidence is there, the matter will be placed
before the Circle Head / Wing Head and the Circle Head / Wing Head may take a decision
regarding conducting of detailed Investigation in the matter through Inspection Wing,
Head Office.

The said Investigation Report is to be placed before the SASC-CO / SASC-HOSA/ SASC-SAS
by concerned HRM Section at Circle Office/ HOSA/ SAS of Inspection Wing. Thereafter the
SASC-CO/ SASC-HOSA/ SASC-SAS of Inspection Wing may either close the matter
wherever no lapses are observed or order for calling for explanation. HRM Section at
Circle Office/ HOSA/ SAS of Inspection Wing shall call for explanation from the concerned
official, analyse the reply and place the matter before the SASC-CO/ SASC- HOSA/ SASC-
SAS. If no lapses are crystallized, SASC-CO/ SASC-HOSA/ SASC-SAS may order for closing

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the matter. Wherever lapses are crystallized the SASC-CO/ SASC-HOSA/ SASC- SAS will
order for submitting IAC note in the matter. Wherever SASC-CO/ SASC-HOSA/ SASC-SAS
has ordered for closing the matter, it should be invariably placed to Circle Head/ Wing
Head for closure of the matter.

1
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Wherever the amount involved is more than Rs.10 Crore in Non-Credit matter, the same
shall be forwarded to IR section, HR Wing, HO by concerned HRM Section at Circle Office/
12
HOSA/ SAS of Inspection Wing for placing the matter before SASC-HO. If lapses are not
crystallized, matter will be placed before HR Wing head for closure. Wherever, lapses are
crystallized, matter will be referred back to HRM Section at CO/ HOSA / SAS of Inspection
4

Wing for calling for explanation. After calling for explanation, matter will be again placed
to SASC-HO through IR Section for closure of the matter/submitting IAC note.
02

The SASC-HO committee for credit and non-credit matters will be the same.
/2

For all Non Credit matters, after receipt of CVO concurrence, appropriate Disciplinary
6

Action shall be initiated by Disciplinary Authority at IR Section, HR Wing (in the case of
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officer employees).
11

1.8.5 FRAUD CASES:

In respect of cases reported as Fraud, Investigation shall mandatorily be conducted by

4

Inspection Wing, HO (based on fraud report submitted by branch, Preliminary Report,

38

Staff Accountability Report and references made as above) and IAC note has to be placed
irrespective of the fact whether staff lapses are observed or not. For credit related
frauds/suspected frauds coming within the sanctioning powers upto RO level, CR & M
81

Section, Circle Office has to directly take up with Inspection wing for Investigation along
with preliminary report/Staff Accountability Report, through Circle Head under
intimation to CAM Wing, HO and with regard to accounts coming under the sanctioning
powers of Circle Office/Head Office the matter will be referred for investigation by CAM
Wing, HO after obtaining permission from Wing Head. For Non-credit related
frauds/Suspected frauds, HRM Section of the concerned Circle Office has to take up the
matter with Inspection wing for conducting investigation along with Circle Investigation
Report, through Circle Head under intimation to IR Section, HR Wing, HO.

In all fraud cases, as per Fraud Risk Management (FRM) Policy, the bank shall lodge the
complaint with law enforcement agencies immediately on detection of fraud. With regard
to the complaints filed by the bank, the Investigating agencies are seeking permission
17
 under Section 17(A) of the PC Act for Investigating the matter against a particular official
and also seeking permission under Section 19 of the PC Act for sanction for prosecution
against a particular official.

As per Fraud Risk Management Policy, with regard to complaints to be filed with CBI, a
complaint drafted properly and vetted by legal Section, Circle Office is to be forwarded to
Vigilance Wing for their approval. A copy of the vetted draft complaint to be forwarded to
IR Section, HR Wing for information.

A) PERMISSION UNDER SECTION 17(A) OF PC ACT:

Section 17 A was introduced in the Prevention of Corruption Act, 1988 (PC Act) vide its
amendment during 2018. The said Section 17 A as applicable to Banks read as under:

“No Police Officer shall conduct any enquiry or inquiry or Investigation into any offence
alleged to have been committed by a public servant under this Act, where the alleged offence

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is relatable to any recommendation made or decision taken by such Public servant in
discharge of his official functions or duties, without the previous approval –

(c) in case of any other person, of the authority competent to remove him from his office at

1
the time when the offence was alleged to have been committed”.

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As such, permission of the Competent Authority U/s 17 (A) is necessary to conduct any
12
enquiry or inquiry or Investigation against a public servant.

It is to be ensured that wherever, police authorities ask for permission under Section
4

17(A) of PC Act, the guidelines prescribed under Para 13 of this policy is invariably
followed and no blanket permission should be accorded to Investigating agencies for
02

Investigation against the officials under Section 17(A) of PC Act.

/2

The Asst. General Manager, overseeing Disciplinary Matters at HR Wing shall act as a
nodal officer, for receiving / submitting back such proposals to investigating agencies
6

(incl. CBI).
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B) CREDIT RELATED FRAUDS OF RS. 3.00 CRORES AND ABOVE:

11

In respect of credit related frauds of Rs. 3.00 Crores and above complaints should be filed
with the Investigating agencies by mentioning “UNKNOWN PUBLIC SERVANTS” and
4

names of the officials need not be mentioned in the complaint. The names of officials
38

should be given as accused only after obtaining advice from ABBFF constituted by CVC.
Detailed guidelines with regard to referring the matters to ABBFF for credit related frauds
of Rs. 3.00 Crores and above is mentioned under Para 14 of this policy. Wherever, a fraud
81

in this category is reported, R&R Section, RLFP Wing HO shall invariably forward a copy
of FMR (reported to RBI) to IR Section, HR Wing HO immediately.

At the time of approaching the CVC for advise in respect of Prosecution sanction under
Section 19 of the PC Act, the respective DA’s will also provide the following information
to the CVO for taking up the matter with the CVC:

(a) Whether the case was eligible for being referred to ABBFF;
(b) If, yes the date of reference made to ABBFF is to be indicated;
(c) The recommendation/advice given by ABBFF may be indicated

18
1.8.6 PROCEDURE FOR CONDUCTING INVESTIGATION:

The Inspection Wing will conduct investigation in the following cases:

1) Fraud Matters/suspected fraud (Credit/Non-Credit)

2) Quick Mortality Accounts

3) Accounts with outstanding above Rs. 50.00 Crores

4) Accounts referred by SASC-CO/SASC-HO in respect of accounts between Rs. 1.00

Crore to Rs. 50.00 Crores, wherever material lapses are observed by the
committee.

5) Any other matters referred to Inspection Wing by HR Wing, Head Office/CAM

Wing, Head Office as enumerated in Para 7.4 & Para 7.19.

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Thereafter the Inspection Wing, HO (after placing the matter to the GM/CGM of Inspection
Wing) will depute one of its Officials for conducting an Investigation. In this regard
Inspection Wing, Head Office will maintain a panel of Officials exclusively for the purpose

1
of conducting Investigation. Generally, the Investigation should be conducted by the

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following officials of Inspection Wing.
12
S. No Amount Outstanding Scale of the Investigating Officer
1 Outstanding upto Rs. 1.00 Scale – 3 *
Crore
4

2 Above Rs. 1.00 Crore and Scale – 4 *

02

upto Rs. 30.00 Crore

3 Above Rs. 30.00 Crore Scale – 5 * or Scale – 6 *
/2

* It is only indicative and the Investigation can be conducted by a higher official also as
per the orders of GM/CGM Inspection Wing.
6
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The Investigating Officer after conducting an Investigation will submit an Investigation

report in the following formats:
11

a) For credit matters with outstanding Liability upto Rs.1.00 Crore – Annexure – V
4

b) For credit matters with outstanding liability above Rs. 1.00 Crore – Annexure VI
38

c) For Non - Credit matters– Annexure VII

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With regard to credit matter investigations with outstanding liability above Rs. 1.00 Crore,
all Investigation Reports are to be vetted by the Next Higher Authority (who shall be
atleast of the rank of Scale V). Thereafter, in case staff lapses are observed in the
Investigation Report, the Investigating Officer shall call for the comments of the concerned
Officials giving them 3 days’ time to submit their reply which can be extended by another
3 days wherever required. The Investigating Officer will submit a final Report duly
analyzing the reply submitted by the Officials. It may be noted that the Investigating
Officer should strictly adhere to the timelines regarding submission of reply by the
concerned Officials and no further time should be granted without any justifiable reasons
which should be incorporated in the Investigation Report. The said Final Report shall
again be vetted by the vetting official as mentioned above.

19
 Investigating Officer entrusted with the investigation should ensure that the investigation
is conducted in wholesome manner to avoid any repeated / supplementary investigations.
In case of inappropriate investigation / shortcoming, the concerned IO’s role is also
questionable.

Investigation if any ordered by the Chief Vigilance Officer (CVO) shall be normally got
done through Inspection Wing, Head Office. Reports of such Investigation shall be directly
submitted to the Vigilance Wing for placing before the CVO.

2.0 CREDIT MANAGEMENT:

2.1 Accountability policy not to discourage exercise of initiative and decision making – Kapoor
Committee Recommendations:
It is necessary that the Bank's functionaries who exercise lending powers do not become risk averse
and develop the skills required for a shrewd and judicious assessment of credit risks. Since risk
assessment skills are developed by repeated exercise of credit judgement, it is essential that

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functionaries exercising credit-sanctioning powers are given the necessary confidence that their
bonafide decisions will not be called into question.

The relevant recommendations made by the High Level Committee on Credit to SSI’s (Kapoor

1
Committee) reproduced below are relevant not only for credit to SSI’s but to credit as a whole:

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"6.114 - While fixing accountability a line should be drawn to separate malafides decisions from
12
normal bonafide credit decisions in order to keep the morale of the staff high (Para 5.11.08)

6.115 - To instill confidence in the staff and encourage them to make decisions including some
4

bonafide mistakes, there is a need to evolve in Public Sector Banks a system of maintaining a
Balanced Score Card for assessing of performance of each officer in taking credit decisions".
02

While mistakes may happen, an atmosphere of fear of being subjected to investigation at some later
/2

date and the associated stigma is not conducive to efficient and informed decision making.
6

2.2. Lending Process - Various Stages:

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The lending starts with pre-sanction survey and continue up to the stage of supervision and follow
11

up till the account is taken out and segregated for the purposes of initiating recovery proceedings.
It broadly involves the following stages:
4

a) Checking and satisfying that existing accounts are conducted satisfactorily and KYC norms have
38

been adhered to while opening of accounts. Due diligence in the case of new accounts at entry
level is to be ensured;
b) Pre sanction Inspection/survey and submitting of related reports;
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c) Processing and appraisal;

d) Recommendations together with stipulated terms and conditions;
e) Sanctions as per the Master Policy on Credit Risk Management of the bank from time to time;
f) Disbursement after completing the usual formalities like documentation, creation of securities,
registration of charge, bringing in margin, obtaining of approvals / clearances, adherence to
mode of disbursals including the compliance of laid down stipulations/sanction terms;
g) Post disbursement follow up/supervision as per usual guidelines and in the process, reporting
of the unhealthy features observed by the Branch functionaries to the respective Controlling
Offices;
h) Overall monitoring and control including review of advances as per laid down periodicity.

20
2.3. Appraisal, Processing & Recommendation:

The lapses, if any, in processing which are procedural in nature and not directly attributable to the
failure of the account shall not be imputed to the processing officials as also to the sanctioning
authorities.

However, if lapses are of repetitive in nature, by a particular staff/official such sequential failure on
the part of the staff/official is to be examined for staff accountability. It is to be examined, whether
there is any suppression of material information that would have otherwise made the sanction
ineligible. In that case appraising authority only shall be held responsible/accountable.

i. Appraisal is generally carried out by the User Section. At times, techno-economic appraisal is
also carried out by Technical Field Officer at Circle office/Head Office. Proper scrutiny as to
the acceptability of the proposal within the framework of policy/ guidelines of the bank &
adhering to the norms prescribed in that regard /verification of financial statements,
projections, status and credentials of the promoters obtained from the market or other

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sources, the correctness of the data and other basic aspects of the proposal as stipulated from
time to time shall be ensured by the official who is appraising / processing the credit
proposals/preparing the credit report including take over accounts and shall be primarily
responsible for the same. In case of takeover of accounts, besides ensuring compliance of

1
terms and conditions applicable for takeover of accounts, due diligence of promoters will also

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be ensured as in all other cases. 12
Wherever technical reports are submitted and utilized for
processing/sanctioning/restructuring of the loans, accountability will be fixed if lapses are
identified and such technical officers are solely responsible for any commission/omission in
4

the report.
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If the appraisal is done by an outside agency, like Agricultural Consultancy Services (ACS),
NABARD etc., or if it is a joint appraisal, due weightage shall be given while examining the staff
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accountability.
6

ii. The official who scrutinizes the proposal/Credit report and recommends to the Sanctioning
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Authority shall ensure that the strengths and weaknesses of the proposal have been brought
out clearly and ensure that the proposal is put up to the Sanctioning Authority as per the laid
11

down Rules/Regulations/Loan Policy of the Bank.

iii. The official/authority processing/recommending a proposal/credit facility(ies) shall ensure

4

the compliance of the important aspects of the proposal stated above, specifically giving views
38

on acceptability of the promoters & the proposal being within the framework of policy /
guidelines of the bank and adhering to the norms prescribed in that regard. He would ensure
that deviations from prescribed norms/procedures are clearly brought out with justifications
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and recommendations shall be made based on clear assessment of bankable projects/

business.
By this, the following circumstances may emerge:

a. Deficiencies have been pointed out and the proposal has been recommended by the
recommending authority with justifications.
b. Deficiencies have been pointed out and the proposal has been recommended by the
recommending authority without justifications.
c. Deficiencies have been pointed out and the proposal has NOT been recommended by the
recommending authority.
d. Deficiencies have NOT been pointed out and the proposal has been recommended by the
recommending authority.
21
 In the circumstances described in (a) & (c), generally no accountability shall fall on the
concerned officials who had appraised processed/prepared/recommended the proposal.
However, in the circumstances described in (b) & (d) above, accountability shall also be fixed
on the concerned officials who had appraised/processed/ prepared/recommended the
proposal.

iv. Officials in credit department, viz. Officers and Credit Manager, in his absence the Senior
Manager of the Branch, shall ensure proper identification of the proposed borrower,
compliance of KYC norms, eligibility criteria for the particular credit facility/loan, verification
of documents furnished by the proposed borrower, obtaining the LSR wherever required from
the Bank’s Panel Advocate, obtaining the Valuation Report from the Bank’s Panel Valuer,
verification of details furnished in NF-589, authenticity of ABS, previous dealings of the party
with other financial institutions etc. In short, the processing officials shall be responsible for
the correctness / Completeness of the information furnished in the Credit Report.

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v. If the above are complied with, generally no accountability shall fall on the concerned officials
who had appraised/processed/prepared/recommended the proposal, in the event of the
account becoming NPA.

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vi. The processing/sanctioning officials to ensure compliance of policy guidelines and also

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ensure the authority competent for same as per Delegation of Powers.
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2.4. Sanctioning Authority:

The sanctioning authority shall be responsible for:

4

i) Adherence of the policy norms in force

ii) Adhering to the delegated power
02

iii) Clearly specifying the terms and conditions of sanction

iv) Ensuring reporting of the sanction to the next higher authority for review
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Whenever the decision of the sanctioning authority was in tune with the procedures/lending policy
6

of the bank/systems in vogue, normally no accountability will lie against the Sanctioning Authority.
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It is to ensure that the officials who exercise delegated powers do not become risk averse and fail to
develop the skills required for an effective and judicious assessment of credit risks. However, if the
11

concerned Sanctioning Authority has either over ruled the observation of the
processing/recommending official without recording justifiable grounds and/or exceeded his
authority without reporting to higher authority with all relevant details for
4

ratification/approval/review, in such cases, the Sanctioning Authority alone should be held

38

accountable and not others.

The clause of Staff Accountability Policy shall not limit the role & responsibility of the Sanctioning
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Authority which they are otherwise supposed to observe.

These guidelines may be made uniformly applicable to sanctions at branches and administrative
offices.

2.5 Documentation:

Loan / Security documents, obtained & executed should be on proper/prescribed formats, complete,
valid, enforceable, having all covenants duly incorporated and duly vetted in the eligible cases. For
the deficiencies, if detected subsequently, the officials assigned with the duty of execution of loan
documents shall be responsible.

22
 The Officials, who had prepared and verified the documents as indicated in the NF-482, (Certificate
of Loan Papers), shall be held responsible for the correctness of the documents obtained which
should be proper, in prescribed format, valid, enforceable, duly filled in etc. The Official who signed
the NF 482 shall be held responsible for the compliance of all the sanction terms and conditions. An
official affixing his signature either singly or jointly on a loan document/ proposals etc., in his official
capacity shall be responsible for same.

2.6 Post Sanction Follow Up:

Eventhough individual responsibility lies with processing/recommending officials with regard to

credit proposals, Branch in charge is responsible for the overall quality of credit portfolio of the
branch with respect to pre sanction, sanction, disbursement and monitoring of loan portfolio.

System of supervision & monitoring of credit as laid down by the Bank should be meticulously
followed. It should be ensured that disbursement(s) was/ were permitted as per terms of sanction.

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Post sanction inspection of the unit & securities be carried out as per prescribed intervals/
periodicity as per guidelines issued in this regard from time to time. Supervision and follow up
should be carried out to ensure that the account is operated at viable level. If the account faces some
temporary problems, practical solution(s)/ suggestion(s) can be contemplated/ implemented by the

1
respective Sanctioning Authority. Conduct and operational/ financial performance, detecting

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signals/ symptoms of sickness and deteriorations, if any, taking place should be closely monitored
and timely corrective actions must be initiated to check slippage of accounts to NPA category.
12
Necessary steps shall be taken to keep a check/ watch on aspects like accumulation of statutory
liabilities, creditors, debtors, raw-material, stocks-in-process, finished goods, etc., for taking
4

appropriate steps to safeguard bank’s interest. After slippage to NPA/ Quick Mortality, adequate
steps shall be taken to upgrade the account / ensure recovery of Bank’s dues, as the case may be, to
02

safeguard the interest of the Bank.

/2

Monitoring of the loans and advances shall be the duty of the officials in the credit department who
shall monitor and/or bring to the notice of higher officials and in case of branches to the branch in
6

charge in writing about diversion of funds by cash withdrawal, transfer to sister/allied concerns,
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payments towards non-business purposes etc. It is also the duty of the officials in credit department
to ensure the compliance of systems and procedures, maintenance of records, follow up, stock
11

inspection and submission of stock verification report, etc.

Disbursements shall be authorized by the Credit Manager/Senior Manager and it is the duty of the
4

officer conducting the post sanction inspection to ensure that end use is ensured and assets are
38

created wherever applicable. The Sanctioning Authority at the branch level or the branch officials if
he/they was/were the recommending authority (ies) shall be responsible to ensure the verification
of the assets created out of the bank’s finance and keep on record the verification report for every
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new sanction. In specialized branch, branch incharge is also responsible for ensuring end
use/disbursement of the loan proceeds, along with other concerned officials.

Wherever adhoc facilities/adhoc over lines is permitted, it shall be the duty of the official who had
permitted the adhoc facilities/adhoc over lines to ensure that the ratification/approval has been
sought and obtained as per procedure. It is the duty of the branch in charge and/or the officer
assigned with the role to ensure that Exceptional Transgressions Report is perused, authenticated
and action initiated. In case of oral instructions, the following shall be observed:

a. Generally, where an officer is giving instruction for taking action in any case in respect of matters
on which he or his subordinate has power to decide, he shall ordinarily do so in writing and
refrain from giving any oral instructions.
23
 b. An officer shall, in the performance of his official duties, or in the exercise of the powers
conferred on him, act in his best judgment except when he is acting under the lawful direct
written instructions of an official superior to him. He shall obtain the directions in writing before
carrying out the instructions.

c. The superior authority giving any oral instructions shall confirm the same in writing
immediately either himself or through his office quoting the guidelines/ instruction under which
he has exercised such power by Fax or e-mail. It shall also be obligatory on the part of official
who receives such oral instruction to act on such oral instructions only after receipt of
confirmation supporting the instructions in writing through e-Mail or Fax.

Further timely recovery measures, monitoring the conduct of the account even after it slips to NPA
which include unit inspection / security inspection, keeping insurance/ECGC/ CGTMSE cover etc., in
force, keeping the debt in force by taking periodic AOD/ revival letter/ balance confirmation, filing
of suit within limitation / initiation of SARFAESI proceedings, taking all other applicable recovery

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steps promptly in accounts marked for recovery, prompt execution of recovery certificates/EP’s etc.,
and all such measures to protect the interest of the bank, shall be the responsibility and duty of the
officials assigned with this task. If the account faces some temporary difficulties, practical solutions
can be contemplated/ implemented within the framework of rules.

1
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Functionaries at operational level are required to take decision in the best interest of the Bank,
keeping in view of early recovery of Non-Performing Assets. The lapses / negligence on the part of
12
the officials in effectively monitoring the accounts marked for recovery may involve financial loss to
the Bank. Cases of allowing Decrees to get time barred, not taking steps for attachment / sale of
assets/securities on time, thereby putting Bank to loss etc., shall be taken in to account while
4

examining accountability.
02

2.7 Renewal of credit limits:

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In all loan cases, before disbursement/release of limit it should be ensured that all sanction terms
are complied with. In case of non-compliance of any terms & conditions, disbursing authority has to
6

obtain waiver / time for compliance of such terms and conditions so that no terms and conditions
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remains not complied with during renewal.

11

a) Where the limit is renewed with or without enhancement - Unless irregularities of serious
nature are observed in the renewal itself, accountability/lapses may not be attributed to the
recommending official/sanctioning authority only for having renewed the facility, even though
4

there were operational deficiencies in the account, if the decision to renew the facility with or
38

without enhancement was a proactive step to save the account from becoming NPA by revival
of the unit/rehabilitation etc.(Duly recording the same while renewal)
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b) Where the limit is renewed without enhancement – Unless irregularities of serious nature
are observed in the renewal itself, accountability/lapses may not be attributed to the
recommending official/sanctioning authority only for having renewed the facility, provided the
same has been done with proper justification, even though there were deficiencies in the
operations of the account. (Duly recording the same while renewal)

c) Where the limit is renewed with enhancement:

 Even if there are deficiencies in the operation of the account, if the enhancement/ extension
of limit was intended for the revival of the unit and thereby save the account from becoming
bad, no staff accountability should fall on the recommending official/sanctioning authority

24
 even if the deficiencies/ irregularities were such that the decision would have been different
if the account was considered for sanction for the first time.

 If the limit is renewed with enhancement in an account which was standard at the time of
renewal, subsequent lapses if noted in the account, shall not be attributed to the officials
who had originally appraised/sanctioned the limit, if they have not continued in the same
post and enhanced the limit.

Definition of “irregularities of serious nature” for the purpose of Renewal shall be:
unsatisfactory conduct of accounts like, Non-availability of prime security/collateral security,
closure of the unit, non-availability of adequate DP, reckless deviations, return of Cheques, non-
routing of turn-over through the loan accounts etc.

2.8 Reviewing Authority:

When once a sanction made is reviewed by the respective Reviewing Authority, it may be deemed

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that the sanctions made are in order from the policy angle provided the observations made while
perusing/taking note are rectified. Any pre sanction lapses from the policy angle pertaining to such
sanctions where the Review has been done, that are noticed at a later stage may not be proceeded
with provided the same is devoid of malafides or any objectionable element.

1
This communication from the Reviewing Authority shall be conveyed within 30 days from the date

:1
of receipt of reporting of such sanction of the credit, unless there is any adverse comment or further
clarification is required from the Sanctioning Authority on any aspect of sanction. Therefore, if
12
sanction is reviewed by the reviewing authorities, the need to look into accountability angle up to
that stage on the part of the sanctioning authority for lapses from policy angle is treated as closed
unless lapses of serious nature such as suppression of material facts/ fraud were later observed.
4
02

Though it may not be necessary that the Reviewing Authority step into the shoes of sanctioning
authority and resort to a re-appraisal of the sanction made, it would be the prerogative of the
/2

Reviewing Authority to point out the deficiencies in the proposal while reviewing the sanction.
Further, the Reviewing Authority should specifically point out instances of reckless lending, blatant
6

abuse of powers, if noticed. As long as the Reviewing Authority has observed that the decision taken
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is within the policy guidelines/parameters issued by the Bank and within the powers delegated to
sanctioning authority, the accountability lapses on the part of the Reviewing Authority having taken
11

note of the sanction need not be further pursued.

If deficiencies are apparently visible, but the Reviewing Authority had not taken cognizance of the
4

same, then he may also be held accountable for dereliction of duty for not observing the apparent
38

deficiencies while reviewing the sanction. But the same will in no way mitigate or absolve the
persons who had processed/ recommended/ sanctioned the proposal, as it is their primary duty to
ensure and protect the interests of the Bank by exercising proper due diligence.
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2.9 Suppression of material information/non-reporting:

Any suppression of material information in the credit reports, control return, non-reporting of
overdrawing and any other adverse features which should have been promptly brought to the notice
of sanctioning/controlling authority, non-compliance of sanction terms without proper reasons and
without approval from the sanctioning authority are to be looked into for staff accountability on the
part of the officials(Processing and Recommending Officials) who are responsible for such
suppression/non-disclosure/non-compliance.

25
2.10 Consortium Advances:

In the case of consortium advances, the appraisal, sanction, treatment of NPA etc. is left to the
member banks. Accordingly, the staff accountability will also be looked into like any other
loans/advances. However, the Authority concerned may take a view regarding staff accountability
if the Leader/majority of the members of the Consortium is/are of the view that the account had
gone bad for the reasons beyond the control of Bank officials and no malafides are suspected on the
part of the bank officials.

Where the leader of the Consortium and the other member Banks feel and opine that the loan failure
is due to willful default by the company or for reasons beyond the control of the Bank officials,
accountability aspects in such accounts are treated as examined, provided no serious irregularities
are observed and malafides are attributed.

2.11 Accountability on NPA's due to external factors;

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2.11.1 If the cause of the NPA is by and large due to external factors, i.e. beyond the control of
the bank (e.g., change in Government Policy, environmental norms suddenly imposed
by pollution control agency, strike in factory, Dockyard strike, natural calamities, delays
in realisation due to postal strike, breakdown in the communication system, non release

1
of government subsidy/ grant, increase in rate of interest, takeover of land or securities

:1
by the government agencies, etc.) it will generally not attract staff accountability.
Reporting officials shall have to make all efforts to elaborate these reasons and suggest
12
measures to contain the loss whether potential or real.

2.11.2 Staff accountability shall be examined, whenever a borrowal account slips to NPA
4

(Fresh Slippage/Quick Mortality) category. In cases where detailed investigation /

examination of staff accountability is already under process based on Special Reports /
02

otherwise, such cases need not be taken up afresh for investigation. However, a view
can be taken and recorded with justification for the need of additional/ supplementary
/2

investigation to ensure that staff accountability aspect has been considered at all levels.
6

2.11.3 While permitting the proposals for write off / waiver of unapplied interest /
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compromise, the concerned authority has to ensure that it is as per the extant OTS
Scheme of the Bank.
11

Malafide intentions noticed in settlement of dues through negotiations/ compromise /

write off shall be seriously dealt with. Once a sanction of OTS (One Time Settlement)
4

proposal is reviewed by the next higher authority, it may be deemed that the OTS
38

sanctions made are in order from policy angle, provided the observations/directions
made while reviewing are rectified /carried out.
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2.12 ECGC/Credit Guarantee Claim settled accounts:

In case of Export advances, violations if any are to be viewed in the light of guidelines as per the
latest Manual. Where the ECGC Claim is already received, the staff accountability in the matter of pre
sanction appraisal, end use of funds, post sanction follow-up need not be probed into, provided ECGC
does not point out lapses in such areas.

The same is also applicable in respect of accounts covered under CGTMSE and any other Credit
Guarantee scheme accounts.

26
2.13 Loan Failures and Accountability:

When loan failures occur, as they at times do, it becomes necessary for the Bank to examine the
causes for the failure and record them in its institutional memory so that such failures can be avoided
in future. Only if such failures are the result of direct acts or omissions on the part of the staff, the
accountability aspect has to be examined. Wherever it is found that staff lapses by way of acts or
omissions have not contributed to the failure of the credit facility, the mere presence of such lapses
should not become a cause for proceeding against the employee concerned.

The mere presence of procedural lapses should also not become a cause for proceeding against the
employee concerned in a failed loan account where adequate realizable securities are available
and/or in accounts which are closed/fully recovered/ standard, unless evidence of fraud/malafide
emerges.

Branches/Offices rely on certain Third party reports while processing/sanctioning loan proposals
or while handling the loan account. These third parties are service providers who are other

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empaneled by the bank/IBA based on their Qualifications and credentials such as Advocates, Valuers
or hold professional qualification such as CAs etc. while the reports are generated externally, bank
officials also have a role to play in terms of processing such reports. By various Circulars/Guidelines,
Bank specify the role of the officials for obtaining/handling the reports of such intermediaries/Third

1
Party service providers. For instance, UDIN verification from the ICAI portal may be mandatory.

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Various Circulars/Guidelines issued by the Bank for obtaining/handling of reports such as for Title
Investigation, Valuation, Audited Accounts, Legal Opinion, Stock Audit are to be followed.
12
Where the branch/Offices has complied with reports submitted by Third Party Entities (E.g.
Advocates, Valuers, CAs, Lenders Independent Engineer (LIE) Etc.), as per guidelines, no
4

accountability shall normally lie on the Bank Officials with regard to deficiencies in the said reports.
02

Wherever, lapses are found and advising action against TPEs (by DA/CVO/CVC or any other
competent authority) like advocates/Valuers/CAs etc. concerned Wing/Circle who has appointed
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such person/entity as per guidelines, to study, analyze, call for explanation and take the matter to
logical conclusion including taking up the matter with the concerned institute for cancelling their
6

license duly following all procedure prescribed by such institute taking necessary permission from
/0

competent authority.
11

2.14 Willful default by borrowers:

In case of willful default by the borrower or in a situation, where the manner in which diversion of
4

funds was done by the borrower was such that it was not possible for bank officials to notice the
38

signals in routine business, no accountability shall generally be fixed. However, if the diversion of
funds was apparent and the official handling the account was grossly negligent in facilitating the
borrower to divert the funds for purposes other than the one for which sanction was given by the
81

bank, the official concerned handling the account and/or the department in charge, should be held
accountable.

2.15 Fixing of Staff Accountability in officials working in Foreign branches/Offices:

Fixing of staff accountability and initiation of disciplinary action against those officials deputed to
branches/offices/exchange companies abroad shall be as per this policy and as per the extant
disciplinary procedure applicable to them.

The provision of policy with regard to domestic branches is applicable to overseas branches/ offices.
Wherever amounts have been specified in rupees, the same may be considered in equivalent
applicable foreign currency.
27
 Investigation shall be conducted during annual inspection. However, Investigation can also be
conducted as and when required by nominating an officer either from any of the overseas branches
or Head Office. Based on the IO report staff accountability section at CAM Wing, Head office shall
place the matter to staff accountability committee for examination.

2.16 Lapses at RO / CO/ HO:

Regional Office /Circle Office get first hand information on the functioning of the branches under
their control. Any laxity in internal control, sudden spurt in advances, frequent deviation from the
set guidelines and exceeding of delegated powers without obtaining ratification from the competent
authority at the branches, which come to light on perusal of the control returns/Mid Term Review
of Borrowal accounts/periodical Executive visit reports of the Circle Office/ Regional Office /
Inspection & Audit reports/charge take over reports submitted by in-coming Branch Head, needs
immediate corrective action. If they fail to take corrective steps on time, the same can be treated as
supervisory lapses and the concerned Regional Office/ Circle Office officials should be held

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accountable.

Though the primary responsibility of reporting of default etc. to the CGTMSE / other credit
guarantee organisations lies with the branch, Officials at RO / CO/ CGTMSE vertical at HO/any other

1
concerned wing who are responsible for liasoning with external agencies shall also be accountable

:1
for any acts of commissions / omissions/ delay on their part.”
12
Branches to ensure prompt claiming of interest subvention in respect of agriculture loans,
educational loans, central / state government subsidies including under TUFS. Officials at RO / CO
who are responsible for liasoning with external agencies / facilitating such claims shall also be
4

accountable for any acts of commissions / omissions/ delay on their part in case of non receipt of
subvention amount / subsidies.”
02

Likewise, if the concerned Wings/Sections at Head Office fail to act on receipt of information from
/2

Circle Offices or any other sources recommending corrective action in such cases, officials at the
concerned Wings/Sections at Head Office shall also be held accountable.
6
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2.17 Reporting and Confirmation:

11

In the normal course of discharging their functions, Bank officials, may on occasions be required to
exceed their powers / discretion in organizational interests. After such a transaction has taken
place, it should be immediately reported to the competent authority for ratification.
4
38

The Competent Authority will grant or reject such requests for ratification within a reasonable time
on receipt of the report as per the scheme of delegation of powers for credit sanction. In case queries
/ clarification are necessary for grant of such confirmation, the Competent Authority may take some
81

more time say, another 15 days, for taking the final action in this regard.

The Competent Authority, should, however ensure that, in all circumstances, such decision is taken
& communicated within a period of one month (30 days) of the receipt of the original report.
Otherwise, the transaction in question shall be deemed to have been ratified by the Competent
Authority and he shall be held responsible for any deviations reported but not commented by him.
However, this shall not absolve the official concerned if any suppression/ misrepresentation have
been observed in the reporting. The order “Noted” by the Competent Authority shall be treated as
ratification.

28
 It is the responsibility of the official concerned who is exercising his/her power to ensure that timely
reporting is made and reasonable follow-up is made with the Competent Authority to obtain
ratification.

In respect of MC/Board matters, the above time norms shall not apply. However, the decision shall
be communicated within a reasonable time.

2.18 ACCOUNTS OUTSTANDING UPTO Rs.10 LAKHS.

Generally, accountability will not be considered/ conducted to examine Staff accountability in NPA
accounts with outstanding up to Rs.10.00 lakhs except as mentioned in para 1.8.1.2.

2.19 ACCOUNTABILITY IN RESPECT OF TERM LOANS:

In cases, where the accounts have run satisfactorily under performing asset category for a period of
3 years or more from the date of sanction, excluding moratorium if any, accountability is to be

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examined by going back up to 3 years from the date on which the account slipped into NPA category
except wherein inherent deficiency such as defective security creation, defective documentation etc.
are inferable.

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E.g.: A Housing loan (with 18 months moratorium) sanctioned on 01.01.2004 becomes NPA on

:1
31.03.2012. Then staff accountability aspect is to be looked into w.e.f. 01.04.2009.
12
2.20 ACCOUNTABILITY IN RESPECT OF CONTINGENT LIABILITIES:

The guidelines enumerated in respect of handling Fund based facilities viz. appraisal, processing,
4

recommending, sanctioning are equally applicable with regard to Non Fund based (Contingent)
facilities also. As far as operational aspects, the advising and confirming shall be invariably done
02

through technology platforms like SFMS/SWIFT etc.

/2

There shall not be any manual maintenance of Contingent Liabilities in the branches.
6

2A. NON PERFORMANCE:

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Avoidance of decision taking/ delay in decision making under notion that “no work no
11

accountability.” Non fulfillment / non achievement of expected business parameters and also
avoiding of taking bonafide business decision without justifiable reasons, shall fall under the ambit
of accountability.
4
38

2B. NON COMPLIANCE OF STATUTORY OBLIGATIONS/ GUIDELINES:

Accountability shall be fixed for any non compliance to Statutory Obligations/ Guidelines and
81

wherever penalty is imposed by the Regulator and other Government Agencies.

Any other acts of commission or omission, which cause reputational loss to the Bank shall also be
examined from the accountability angle administratively.

2C. SPECIAL REPORTS DURING RBIA:

Wherever Special Reports are submitted by Inspecting Officials; Inspection Wing, HO shall conduct
Investigation in the matter and shall forward the report to the respective CR & M Section, CO in
respect of Credit matters and HRM Section, CO for placing the case to SASC-CO/HO as per
procedure.

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3.0 NON CREDIT AREAS:

3.1 The ambit of accountability in non-credit areas could be at:

1. Non-compliance with 'Know your customer' and Anti-Money Laundering (AML) related
policy and procedural guidelines of RBI / Bank for opening & servicing accounts, and thus
exposing the Bank to legal & financial risks.
2. Non-compliance of the guidelines issued by DIT Wing with regard to functioning of CBS
branches with particular reference to backups, pass words etc.
3. Lack of control over security stationery items & expenditure.
4. Non submission / delayed submission of control returns.
5. Lack of control in long outstanding items of sundry asset accounts/other impersonal
accounts/ Nostro accounts/ Bankers account etc.
6. Rude behavior with the customers of the Branch.
7. Erosion of Income.

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8. Permitting write offs in accounts without specific authority or in violation of guidelines.
9. Non presentation of documents received for collection, both inward and outward.
10. Releasing documents received under collection without payment (or acceptance in case of

1
Usance documents).

:1
11. Persistent tendency to delay customer service, reflected by frequent customer complaints.
12. Non-adherence to Bank's human resources management policies and procedures and
12
obligations under labour legislations.
13. Non- compliance of other IT security guidelines including operational aspects.
14. Unauthorized debit to customers account.
4

15. Use of Expired A/c / other impersonal accounts for transfer of funds to own or other
02

accounts for self enrichment.

16. Creation of dummy a/c’s for passing through unauthorized transactions.
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17. Irregularities in purchase of various items.

6

18. Permitting unauthorized access to the system to outsiders.

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19. Failure to inspect ATM cash as per laid down norms.

20. Failure to comply with statutory obligations.
11

21. Non transmission of LCs and BG Confirmatory Advice through SFMS- Accountability to be
fixed.
22. Wrong reporting on account of data without integrity leading to punitive measures on the
4

Bank.
38

23. Wrong reporting / false confirmation of compliance by the branches to the inspection
observations whether in the credit or non-credit matters shall be treated as a misconduct
81

and accountability have to be fixed.”

24. Violation of provisions of Social Media Policy of the Bank shall be treated as a misconduct
and accountability have to be fixed.”
25. Misuse/Fraud in GL Heads/Internal accounts.
26. Wrong updation of data
27. Unauthorised debit in GL without proper justification.
28. Wrong compliance of RBIA remarks.
29. Updation of wrong data in CBS, knowingly or unknowingly / intentionally or unintentionally.
30. TOD granted beyond delegated powers for passing clearing cheques without proper
justification.

30
 31. Any Violation as mentioned in Bank’s Information Security policy, Cyber Security Policy and
other related regulatory guidelines
32. Non Adherence in generation, verification, tallying with vouchers, preservation of daily
mandatory reports at Branches / Offices.

The above list is only indicative and not exhaustive and shall cover non-compliance/violation of any
guidelines issued by the bank from time to time.

3.2 Fixing of staff accountability in certain areas:

a. Forged/fraudulent Cheques:

Where the signature appearing on the forged/fraudulent cheque apparently and with the naked eye
tallies with the specimen signature lodged with the bank and is other-wise in order and payable in
the normal course of business, the staff accountability shall be examined taking into consideration
the circumstances of the case, negligence, involvement of the official concerned etc.

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b. Fake documents:

Generally no staff accountability need be fixed in the event of a fraud being perpetrated based on

1
fake/fabricated/forged title deeds, if ordinary precautions expected of a prudent banker have been

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exercised by the officials concerned including:
12
i. Obtention of proper LSR where the Advocate has confirmed having verified the original
title deeds and has confirmed the title, the flow of title, marketability of the property and
all documents as per the LSR have been obtained;
4

ii. Property proposed to be mortgaged has been visited and its existence is verified and
02

confirmed;
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iii. The mortgagers have been properly identified and their presence has been confirmed
while executing the mortgage papers.
6

c. Erosion of Income:
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In case of instances of Erosion of Income on account of Technology/System related matters then

11

generally no staff accountability will lie on the part of the branch officials.

However, incase, the technology malfunction/system failure which resulted in the erosion of income
4

was on account of any omission/commission on the part of the officials in DIT Wing / EDP/
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Technology monitoring/ overseeing Section then staff lapses shall be looked into on the role of these
officials in the matter.
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In respect of other instances of erosion of Income, if the entire amount is recovered then generally
no staff accountability will lie on the officials concerned. However, if the Erosion of Income is for an
amount of more than Rs 1 lakh, then the same shall be recorded in the personal file of the officials
concerned and if such instances are repeated for more than three (3) occasions then accountability
will be fixed on the official concerned.

d. Technology related matters:

Technology also involves frequent resetting of parameters due to changes in interest rates, service
charges and other business needs etc., which is being done by the DIT Wing/Wing handling such
matters. In such cases, the persons are expected to carry out such work with utmost care and ensure
that there are no mistakes in the changes and such changes are properly validated by the
31
supervisors. This is one of the key areas, as the parameter changes are made at the global level and
will affect the entire bank. The income leakages in such cases will be huge. Since, it affects the income
of the bank and also its reputation and may lead to customer complaints, the officials both at the
Branch/ User level as well as at DIT Wing/Wing handling such matters have to carry out such work
with due diligence and utmost care and have to be made responsible for such parameter changes.

However, sometimes inspite of effecting the changes as required, the system behaves erratically and
may not give the expected output resulting in loss/gain of income to the bank. For such systemic
failures, the concerned officials generally shall not be made accountable.

 AMC/ATS:

 Officials entrusted with entering/renewing AMC/ATS shall carry out them and ensure that
there is continuous support available from vendors. Such officials shall be responsible if
there is non-availability of support from vendors due to absence of AMC/ATS.
 Wherever AMC/ATS is not arranged, it should be brought to the notice of the appropriate
authorities well in time.

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 Deduction of appropriate TDS/GST and remittance thereof.
 Officials entrusted with the task of releasing payments shall be responsible for deducting
appropriate and applicable TDS/GST.

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 TDS so deducted should be remitted in accordance with the rules of tax remittance.

 System-related issues:
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 No employee shall generally be accountable for any system-related/attributable
problems/issues.
 DIT Wing shall decide basing on the technical inputs available on-site/from vendors, the
4

nature of the problem/issue – whether it is system-related/attributable.

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 Such problems/issues shall be brought to the notice of DIT Wing immediately for
rectification.
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 DIT Wing shall initiate steps for rectification of such problems/issues by taking up with the
vendors.
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e. Non-escalation of irregularities/deviations/unethical practices observed to higher

authorities and/or being a silent spectator:
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Staff accountability may also be examined in cases where employees by their acts of omission/
commission fail to escalate irregularities/deviations/ unethical practices etc., to the Circle Head and
4

for being a silent spectator to an issue/matter which has ultimately resulted in damage to the bank’s
38

interest/property.

The accountability shall be fixed by the User Section/HRM Section at Circle Office/Head Office in
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non-credit areas after investigation as per procedure.

f. Digital Lending:
As a part of technology led transformation for smart & tech enabled banking, targeting segment of
Millennials & Gen-Z customers, Bank has launched a comprehensive Digital lending platform
wherein various credit facilities can be availed by the Customer through Straight Through
Processing. Therefore, this is need to revisit the staff accountability policy to the extent, it relates to
loan sanctioned through digital lending platform. Although the platform is well built to arrive at a
correct decision, sanctions may not work on the account of following:

 Data Inaccuracy & Data Inadequacy leading to faulty sanctions by the system
32
  Documentation
 Post sanction monitoring of the accounts

Accordingly, the extant guidelines on staff accountability on digital lending will be modified and shall
be applicable only when:-
Data Inaccuracy & Data Digital Platforms are at times being used only to generate leads pre-
Inadequacy leading to fetching certain data electronically including IT/GST returns etc.
faulty sanctions by the However, processing thereafter is not end to end digital. In such
system
cases, accountability would not arise for pre-fetched data. Maker
shall key in correct details and checker shall ensure correctness of
the same.

When such loans are processed though Digital Lending Portal and
where pre-fetched data is used for processing and sanctioning loan
proposals, the concerned officials shall verify and ensure that the

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pre-fetched data is matching with the personal credentials of the
respective loan applicant/s / related parties / Guarantor/s. In this
regard, any lapse on the part of the concerned officials shall have to

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be examined.

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Wherever, pre fetched data is modified / updated by manual
12
intervention then any lapse on the part of the staff concerned, shall
falls under the ambit of staff accountability
4

Documentation As per extant guidelines

Post sanction monitoring of As per extant guidelines
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the accounts
In respect of specific schemes under Digital lending platforms formulated by various wings, the SOP
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and guidelines issued by the respective Wings have to be followed.

6

Wherever application received from websites like psbloansin59minutes.com, PMEGP and other
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govt. sponsored schemes, Shishu Mudra Loans portal, Personal loans through Canara Bank portal
etc., guidelines issued by respective wing has to be mandatorily followed."
11

3.3 Administrative Office level:

Staff Accountability will be looked at Administrative level also. Few instances where Staff
4

Accountability will be looked into are:

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a. Inaction for more than a month on serious irregularities/matters other than credit.
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b. Awarding contracts / accepting tenders without complying with the laid down norms.
c. Not providing required guidance, when sought by Branches / subordinate offices, on specific
issues.
d. Lack of regular follow up / monitoring on issues requiring such follow up.
e. Exceeding delegation of powers in respect of incurring revenue/capital expenditure;
f. Non-compliance of Regulatory compliances;

3.4 Penal action for trading in Canara Bank Shares during trading window closure period:

As per the SEBI guidelines on prohibition of insider trading and bank’s internal code of conduct,
designated officials and their immediate relatives (as defined in Canara Bank Code of Conduct for
Prohibition of Insider Trading) shall not trade in Canara Bank shares during period when the trading
window is closed.
33
 Following penal action will be taken in case of violation of the said guidelines:

S. No Violation Penal Provision

1 Trading (Purchase/Sale) of Canara Bank shares Rs. 1000/-
during trading window closure period: Up to 1000
shares
2 Trading (Purchase/Sale) of Canara Bank shares Rs. 2000/-
during trading window closure period: 1001 to 2000
shares
3 Trading (Purchase/Sale) of Canara Bank shares Rs. 3000/-
during trading window closure period: 2001 to 3000
shares
Similarly, for every additional block of 1000 shares traded, an additional of Rs. 1000/- shall be
penalized.
In case of repeated offense, the same shall be treated as a major offense and dealt with

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accordingly.

Any penal amount collected shall be remitted to the Investor Education and Protection Fund (IEPF)
held by SEBI.

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3A COMMITTEE CONCEPT:
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3A.1 The rules laid down under this policy for individual Sanctioning Authority, Official/Authority
appraising/ recommending and Reviewing Authority shall mutatis mutandis be applicable to the
committee concept, whether it is credit or non-credit matter.
4
02

3A.2 The Government of India, Ministry of Finance, while communicating the guidelines for setting up of
committees at various levels in Nationalized Banks vide their letter F No.13/1/2006-BO.1 dated
03.04.2012 has observed:
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“It has been felt that setting up of such a structure in the PSBs would expedite disposal of matters,
6

improve the quality of decision making and reverse the growing trend of upward delegation in the
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Banks.”
11

Therefore, whenever a decision is taken by the Credit Approval Committee or any other committees
duly constituted by the Competent Authority, it is expected that such decisions are taken collectively
by its’ members based on their expertise, experience, knowledge and wisdom, in the best interest of
4

the bank. As such generally the accountability shall not be fixed in respect of decision taken by the
38

Credit Approval Committee or any other committee duly constituted by the Competent Authority,
except under the following cases like:
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a) frauds committed with the involvement/ connivance of the members of committee;

b) decision influenced by personal/ vested interest;
c) decision based on extraneous factors not relevant to the business interest of the bank;
d) decision tainted with ulterior motive;
e) decision which are not bonafide; and
f) decision taken under influence/ pressure from outsiders, though such decision is not in the
interest of the bank and in violation/ deviation of the critical mandatory norms which seriously
affects the bank’s interest.

In the cases like above the members of such committee shall be accountable collectively as well as
individually.

34
3A.3 As also laid down in guidelines Circulated vide HO Cir No.182/2012 dated 22.06.2012 for “Formation
of Credit Approval Committee”, the decisions of the committees are expected to be unanimous.
Whenever, unanimous decision cannot be arrived at, the reason for disagreement and the basis of
decision should be specifically mentioned in the minutes. As such, in cases referred as exception
under 3A.2 above, if a member of the committee has recorded in the minutes, his disagreement with
reasons and the committee takes a decision overlooking such disagreement, while fixing the
accountability on the members of the committee, the benefit of recording the disagreement by the
particular member which if considered could have averted the wrong decision of the committee,
should be extended to such member of the committee and he shall be eschewed from the
accountability.

3A.4 In case of suppression of material facts at the time of submission of proposal and not reporting the
adverse development if any to the Committee, the accountability will rest on the Officials responsible
for the same.

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4.0 FRAUDS:

Frauds in a bank can scarcely take place in isolation if systems and procedures are followed. Where
they are not, temptation to commit frauds manifests itself. In a bank where more than one person

1
works, frauds can seldom take place if those around the fraudster are not complacent or indifferent
or passive spectators. Empirical evidence confirms the fact that frauds are allowed to be perpetuated
for these simple reasons stated above.
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It may be borne in mind that negligence arises when there is a duty and duty is defined in terms of
the laid down rules and procedures. Thus, the negligence / omission / commission should be
examined with reference to the laid down rules and procedures and it is expected that the
4

guidelines/circulars issued from time to time in Credit/Non-credit/Fraud areas are complied with
02

in its true letter and spirit.

There is a shift in the modus-operandi in the commitment of frauds from the first person singular to
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the third person plural, from across the counter to remote controlled techniques, from crude
methods to highly sophisticated methods, and so on.
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At the end of it all, it simply boils down to neglect, whether casual, willful or even conspired
negligence to follow established norms & procedures among staff at lateral levels and more so at
11

supervisory levels.

These relate to areas like:

4
38

a. Improper identification of new customers facilitating opening of fictitious accounts.

b. Allowing huge cash withdrawals in newly opened accounts on realisation of Cheques, drafts,
Dividend Warrants for large sums whether drawn on the account holder or third parties.
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c. Not being vigilant on unusual transactions.

d. Not keeping watchful track of borrowers with tendency to divert funds, misuse facilities,
wrong reporting of stocks/debtors and noncompliance of sanctioned terms under one
pretext or another.
e. Ineffectiveness in cash management or its movement.
f. Failure to safeguard security items as per prescribed norms.
g. Non- Ensuring job rotation without justification.
h. Misappropriation of customers'/Banks' funds.
i. Withdrawal of funds without having sufficient balance in the account and destroying the
relevant records.
j. Misutilisation of LFC facility/ TA advance/Housing loans.
k. Submission of false caste certificate.
35
 The above list is only indicative and not exhaustive.

Bank transactions are so numerous and varied that fraud can be perpetrated in any of the areas.
Normally, a Bank fraud is a deliberate act of omission and / or commission by any person carried
out in the course of banking transaction or in the books of account maintained manually or under
computer system in Banks, resulting into wrongful gain to any person for a temporary period or
otherwise, with or without any monetary loss to the Bank.

Frauds could be committed by the Employees, or by employees in collusion with outsiders or by

outsiders.

Where there is a prima facie case of fraud, forgery, falsification of records, accommodation,
suppression of material facts, bribery etc., by an employee acting independently or in connivance
with an outsider the matter must be viewed seriously and accountability fixed accordingly, without
reference to the loss that may be suffered by the Bank, for the Bank basically relies on the faith and

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confidence in each employee.

However, in fraud cases which have been perpetrated by the outsider without the willful
involvement of an employee, the lapses/negligence on the part of the employee which contributed

1
the perpetration of the fraud need not necessarily be viewed from vigilance angle.

5.0
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TIME LIMIT FOR INITIATION OF DISCIPLINARY PROCEEDINGS AND ROLE OF INSPECTING
12
OFFICIALS:

5.1 Our Bank has a system of internal inspection for non-borrowal/borrowal account under which they
4

are subjected to close scrutiny. The Inspecting officials would scrutinize pre-sanction appraisal,
documentation and disbursement of loans/advances and post sanction follow-up. If any irregularity
02

is missed out by Inspectors in the first inspection, it is reasonable to expect that the remaining
undetected irregularities will be detected in the second inspection and necessary staff
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accountability, if any, would be examined in the matter. Normally, the second inspection would be
completed within 3-4 years.
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In case any irregularity is detected subsequent to the second inspection, the inspecting officials
concerned may be held accountable if the irregularity was one which was subsisting at the time of
11

the first inspection and was overlooked/ ignored or otherwise undetected by the inspecting officials
who conducted the first inspection. Similarly, if the lapses have been detected after the second
inspection, the inspector who had conducted the second inspection shall also be accountable for not
4

pointing out the lapses during their inspection or do not highlight carryover of audit comments not
38

rectified by them.

5.2 If there is a long time gap of say more than 6 months between the examination of staff accountability
81

and the subsequent submission of NF 607/compromise or write off proposal in an account, there
should be specific comments on the' staff accountability aspect covering the intervening period,
particularly in relation to increase in outstanding, dilution of securities, lack of follow up and
reporting or any other relevant matters along with the conclusion of the examining authority.

5.3 Disciplinary action once decided to be taken, generally to be got completed within a time frame of
six months.

Multiplicity of the charge sheets should be avoided as far as possible. The Competent Authority
initiating departmental action should, as far as possible, ensure that all matters pertaining to the
particular branch/office based on which the departmental action is being initiated/contemplated
have been covered in a single charge sheet.
36
 For staff due for superannuation, Disciplinary Action, if contemplated, must be initiated without any
delay.

In the event of the death of an employee under any circumstances, at any time before the imposition
of the punishment, for the purpose of staff lapses, the Departmental proceeding
initiated/contemplated against him shall stand abated and his family will be entitled to all eligible
terminal benefits.

5.4 Parallel departmental enquiry will be conducted in cases where external agencies e.g. CBI, Police;
are involved, in consultation with them, wherever necessary.

6.0 FIXING OF STAFF ACCOUNTABILITY FOR RETIRING EMPLOYEES:

6.1 A list of all employees (Workmen/ Officers/ Executives) who are retiring in the ensuing 1 year as on
the 1st of January & 1st of July every year should be prepared by HRM Section and submitted to

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Human Resources Wing, Head Office. This statement should be submitted not later than 30th
January/31st July every year.

6.2 Clearance has to be obtained from Branches/ Offices where the employee was last working for the

1
preceding 4 years of his retirement.

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The clearance should be given by the permanent / acting branch in charge duly taking into
12
consideration the following:

a. The branch in charge is required to verify the last inspection report of the branch and if it is
4

closed nothing need to be seen up to that point and only subsequent period needs to be
checked by him with respect to the KRA of the official concerned.
02

b. If the inspection report is not closed; whether the pending issues are in relation to the KRA of
the concerned official.
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c. Apart from the above, any reporting regarding the official to the higher authority/ Circle
Office regarding his involvement in any matter.
6
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6.3 This clearance has to be obtained by HRM Sections 6 months before the date of superannuation of
the employee/s and a Certificate duly signed by the Circle Head is to be sent to Human Resources
11

Wing, Head Office within 15 days of the effective date.

6.4 Final clearance should be sent 3 months prior to the date of retirement of the employee/s to Human
4

Resources Wing, Head Office.

38

6.5 In the eventuality of any matter being revealed after the issue of the respective Certificates as
mentioned in Clause 6.3 or 6.4 above, the Circles should accord ‘TOP PRIORITY’ to such cases and it
81

is the responsibility of the Circle Head to ensure that the papers are put up to the Competent
Authority for taking a suitable decision in the matter.

6.6 All necessary steps like conducting investigation, calling for explanation etc., should be done within
a time bound schedule to ensure that the matter is brought to a logical conclusion before the date of
retirement of the concerned employee. Such matters should be under the personal monitoring /
follow-up of the Overseeing Executive of HRM Section.

6.7 If any staff lapses are identified / revealed against the retiring employee in a matter pertaining to a
period prior to the date of the respective Certificates issued by the Circle, the matter will be viewed
from staff angle against all the concerned officials including the officials / Executives at Circle Office
for the delay / non-reporting / non-identification of the lapses at the appropriate time.
37
7.0 PROCEDURE FOR CONDUCTING INVESTIGATIONS/ RE-INVESTIGATIONS, REPORTING
MECHANISM AND EXAMINING OF STAFF ACCOUNTABILITY

7.1 An investigation is a systematic, minute, and thorough attempt to learn the facts, veracity or
truthfulness of complaints or information received. There are various sources of information. It may
arise out of complaints / letters / memorandum containing allegations, inspection reports, press
reports, reporting of accounts turning to NPA etc.

It is essential that the officers deputed for the above purpose conduct the investigation in an
impartial, fair and objective manner. The conclusions given by them, apart from being factual and
relevant, shall also bring out all the details which have evidentiary value. It is, therefore, necessary
that the Officers who are deputed for investigation shall conduct the investigation and submit the
report without any bias.

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It is of utmost importance to bear in mind that the investigation is only a fact finding task including
the reasons for account going bad in case of advances related matter. It enables the authorities to
come to a conclusion whether there is a prima facie case for initiating further action. Hence, it should
not be the sole objective of the investigating officer to get some employee punished by any means

1
but to see that only the lapses / irregularities are brought to light.

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The Investigating Officer should submit his report along with list of documents and copies of the
12
same. The said documents should be attested as “True copy” by the Investigating Officer. The
Investigating Officer shall also keep the Investigation Report and the documents in a digitalized form
invariably. Further the Investigating Officer should also obtain certificate from the branch in
4

charge/section in-charge for keeping the original documents in safe custody.

02

7.2 Officials working in or attached to HRM Sections shall generally not be entrusted with Investigations.
Officials who are working in the branches/ user sections shall be trained on the methodology of
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conducting Staff Accountability Study process and shall be used for the purpose of conducting Staff
Accountability Study.
6
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As stated earlier, all investigations in Credit matters shall be conducted by Inspecting Officials at
Zonal Inspectorates/ Inspection Wing, HO and the CR & M Section at Circle Office/ CAM Wing at Head
11

Office shall take up with Inspection Wing, HO for conducting investigation wherever the same is
ordered by the Competent Authority. The entrustment of Investigation by the Inspection Wing shall
be as per para 1.8.6 above.
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38

7.3 It shall be the responsibility of the CR & M Section, CO / CAM Wing, HO from the stage of entrusting
the matter for investigation upto the stage of finalizing / crystallizing the staff lapses. Upon
crystallization of lapses, the CR & M Section, CO, shall forward the matter to HRM Section for
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submitting Note to the Internal Advisory Committee for Determination of Vigilance Angle and
initiating appropriate Disciplinary Action wherever required. The said note will be submitted
through I R Section, HO and shall contain the views of the Circle Head. They should ensure (either
themselves or through the Official Conducting Staff Accountability Study/ Investigating Officer) the
identity of the person accountable for the lapses through the KRA’s and/or the actual work done/not
done by the officials concerned.

7.4 As and when a matter is to be investigated, the concerned Section/RO (in respect of credit matters
other than regular Staff Accountability Study of NPA accounts) should approach the CR & M Section,
CO. CR & M Section, CO shall inward all references made by the concerned Section/ RO for
investigations and refer all such matters of investigations to Inspection Wing, Head Office through
their Circle Head for conducting Investigation.
38
7.5 Generally, accountability will not be considered/ conducted to examine Staff accountability in NPA
accounts with outstanding up to Rs.10.00 lakhs except as mentioned in para 1.8.1.2.

7.6 On receipt of the Staff Accountability Report/ Investigation Report, the CAM Wing/ CR & M
Section/CRM Section should examine the report to ensure that it is submitted in the prescribed
format covering all the requisite information.

7.7 After being satisfied, the CAM Wing/CR & M Section/CRM Section will place the matter to the
Competent Authority for finalization of staff lapses, if any.

7.8 For the purpose of taking a pragmatic and a balanced view with regard to the determination of staff
accountability, each Regional Office shall form a “Staff Accountability Screening Committee –
Regional Office” (SASC-RO) consisting of the following members which shall screen and scrutinize
the Preliminary Report/ Staff Accountability Report / Investigation Report and determine the staff
lapses.

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a) Regional Office Head - DGM/AGM/DM
b) Executive [DM/AGM] at RO (other than Executive overseeing CR & M Section).
c) Section Head of Assurance Section, Regional Office

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Loans sanctioned by Regional Office, should invariably be forwarded to CR & M Section, Circle Office
to place before SASC-CO, as per guidelines.
12
7.9 For the purpose of taking a pragmatic and a balanced view with regard to the determination of staff
accountability, each Circle Office shall form a “Staff Accountability Screening Committee – Circle
4

Office” (SASC-CO) consisting of the following members which shall screen and scrutinize the
Preliminary Report/ Staff Accountability Report / Investigation Report and determine the staff
02

lapses.
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 Executive overseeing Resources Section, Circle Office.

 Executive overseeing Advances Section, Circle Office.
6

 Executive overseeing Operations Section, Circle Office.

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 Section Head of Assurance Section, Circle Office for Credit matters/Section Head of HRM Section
11

for Non-credit matters.

(In the absence of any of the above executives, any Executive overseeing other than CR & M Section/
4

Vigilance setup /DA of the Circle may be a member of the committee)

38

Staff Accountability Screening Committee at HOSA / SAS of Inspection Wing shall be formed by
involving three executives (Other than DA) of their respective wings along with the section head of
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HOSA / SAS of Inspection Wing.

7.10 SASC-HO shall consist of Chief General Managers/ General Managers at Head Office, constituted as
per the orders of Managing Director & CEO or in his/her absence Executive Director. The minimum
quorum for any meeting shall be 3 members.

7.11 In respect of all NPA Accounts outstanding above Rs.30 Crore, the matter is to be referred to the
Chief Vigilance Officer in a routine manner for scrutiny.

7.12 If explanation is to be called from the concerned officials, the CR & M Section Circle Office /CAM
Wing, Head Office shall ensure that the reply is received within the time stipulated. Normally, seven
days time may be given for submission of reply to the explanation calling letter, with a maximum of
2 weeks from the date of calling for explanation.
39
7.13 In case of Non-Credit matters, the HRM Section shall call for explanation and the time lines as
mentioned in para 7.12 are applicable for the same.

7.14 Investigation should not be kept pending indefinitely waiting for the reply from the officials. If the
reply is not received from any officials despite sufficient time been given, the CRM Section, Regional
Office/ CR & M Section, Circle Office/HRM Section shall proceed further in the matter, treating that
the concerned official failed to submit the reply.

7.15 The CAM Wing/CR & M Section, CO /CRM Section, RO /HRM Section, Circle Office on receipt of the
reply / non-submission of reply of the concerned officials shall critically analyze the lapses /
irregularities observed in respect of each official vis-à-vis the reply given by him and taking into
consideration full facts of the case, the situation at work place and other extenuating circumstances
and taking a view of the matter in its entirety, shall place the matter before the Competent Authority
for finalizing the views against each of the lapses.

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7.16 Once the views on each lapses are finalized, the CAM Wing/CR & M Section, CO /CRM Section, RO /
HRM Section, Circle Office shall furnish their detailed specific views / comments with necessary
papers before the Competent Authority by way of self-contained note duly indicating the nature of
the lapses to be proceeded against each official.

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7.17 The CAM Wing/CR & M Section, CO / CRM Section, RO /HRM Section, Circle Office should invariably
furnish the necessary details of financial implications such as whether it is a quick mortality account
12
/ NPA, present liability, availability of enforceable security, value of the security, steps taken for
recovery and present position, Chances of recovery etc.
4

7.18 In case of crystallization of lapses against any of the Official, the HRM Section, Circle Office should
immediately process the same and place the matter before the IAC at Head Office along with the
02

views of Circle Head.

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7.19 There should not be any investigation/Staff Accountability Study conducted in a Circle without the
concurrence of CRM Section, RO /CR & M Section, CO /HRM Section, CO, as the case may be. All the
6

subsequent, clarification, re-investigation, supplementary investigation, if any, shall also be

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conducted/ routed through, CR & M Section/HRM Section, Circle Office and at Head Office, it shall be
through CAM Wing/ I R Section, H R Wing, Head Office. In Head Office, if any Wing is of the view that
11

investigation is required for any matter under their follow up, they have to take up with Credit
Administration & Monitoring Wing (Credit matters)/I R Section, H R Wing (Non-Credit matters) with
background and recommendation of the Wing Head. The Competent Authority for the said purpose
4

is as mentioned below.
38

Matters involving Officials Upto Scale VI Head of H R Wing/CAM Wing

Matters involving Officials Scale VII & VIII Executive Director
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However, the CVO may continue to exercise his existing powers as provided under CVC rules.

For any matters which warrants investigation, CAM Wing/ I R Section, H R Wing may take up with
Inspection wing for conducting Investigation.

Generally, in case of fraud matters and fast-tracked cases the overall time for completing all the due
7.20 process and placing the Office Note before IAC shall be completed within 3 months from the date of
reporting of fraud to RBI. In relation to other fast tracked cases it shall be within three months from
the date of incident coming to light.

40
 In other matters, including where the account turns to NPA, which is neither a fraud case nor a fast
tracked case, the IAC Note factoring the crystallized lapses, shall be placed within the overall time of
6 months from the date of NPA or incident coming to light.

The Managing Director & CEO is empowered to issue guidelines with respect to the fast tracked cases
and time norms to be followed in each and every stage within the overall time limit. The delay if any
at each and every stage should be recorded with the specific and valid reasons. The Circle Head shall
monitor the staff accountability matters and the adherence to the time norms shall be ensured by
way of periodical review meets as decided by the Circle Head.

With regard to MIS on Staff Accountability Matters the same shall be maintained by CAM Wing, Head
Office through the respective CR & M Section at Circle Offices. The data with regard to NPA Accounts
– Staff Accountability shall be invariably punched in the SAS package meant for the purpose for
periodical review and timely disposal of cases.

7.21 HRM Section, CO and CR & M Section, CO should maintain data of officials for whom explanation was

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called and should monitor the matters until it comes to a logical conclusion.

7.22 Staff accountability need not be examined in respect of accounts where there has been no adverse
remarks/comments in the last 4 years internal audit reports (RBIA) as on date of NPA

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7.23 With regard to Non Credit matters, no disciplinary proceeding will ordinarily lie against any official
for any lapse not detected within 4 (Four) years from the date of event or occurrence of the lapse.
12
7.24 The timelines mentioned in para 7.22 & 7.23 will not apply to cases of where the involvement of the
employee is identified in:
4

a. Frauds.
02

b. Cases where malafides are inferable.

c. Other criminal offences as per the law of the land.
/2

7.25 If Staff Accountability is completed earlier and matter/account is treated as Fraud at later stage, then
6

Staff Accountability should be further examined from fraud angle and if fresh lapses are observed
/0

action is to be initiated for the said lapses.

11

7.26 CR & M Section, CO/HRM Section, CO shall submit a monthly report to CAM Wing HO/IR Section, HR
Wing, HO regarding investigations pending along with their present status.
4

7.27 CAM Wing, Head Office shall also submit a monthly report to IR Section, H R Wing regarding the
38

status of Accountability in case of Credit matters.

7.28 In case of quick mortality cases accounts or where fraud has been committed the staff accountability
81

should be started immediately.

7.29 In cases where Vigilance Wing has informed certain observations and advised for relook of
accountability done by the Staff Accountability committee, the resubmission must be completed
within 30 days of receipt of observation from Vigilance Wing

7.30 The above timelines shall be applicable on the NPA accounts with foreign/overseas branches also.

7.31 All accounts which are sanctioned at Circle Office &Head office level, should be placed to SASC-HO
irrespective of outstanding liability.

41
 Where multiple Accounts of the same borrower is there, the outstanding balance of all the accounts
7.32 put together should be seen while examining the Accountability and based on the highest
Sanctioning Authority.

7.33 The accounts classified as NPA through MOC after 01.04.2022 will be governed under the framework
of new policy, even if the classification is done by the Statutory auditors from the back date.

7.34 CAM Wing, HO shall place a yearly report within 30 days after the end of financial year before the
Board of Directors regarding the progress of Staff Accountability in the NPA accounts.

7.35 If the account gets upgraded within 90 days from the end of the quarter in which account slipped to
NPA, without any compromise or settlement, no accountability shall be examined. Even If the staff
accountability examination process is initiated for these accounts, it need not be proceeded further.

7.36 All the CVC guidelines as per Vigilance Manual

(https://cvc.gov.in/sites/default/files/Vigilance%20Manual%28updated%202021%29-

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Hyperlinked.pdf) are to be adhered to.

7.37 Gross irregularities in Credit Cards (processing, sanctioning, monitoring, etc) shall be examined as
per procedure enumerated in Credit matters.

1
8.0
:1
ASPECTS TO BE CONSIDERED IN EXAMINING ACCOUNTABILITY - DISTINCTION BETWEEN
12
VIGILANCE AND NON-VIGILANCE CASES;

8.1 Essentially, lapses fall into Three broad categories –

4
02

a) Procedural lapse or casual negligence in the ordinary discharge of one’s

duties and not Involving financial/legal liabilities for the Bank
b) Gross or culpable negligence
/2

c) Lapses with malafide intentions

6

The lapse of the first type (a) either may not be proceeded with/be viewed leniently while the other
/0

two types (b) & (c) would definitely call for punitive action.
11

8.2 The Chief Vigilance Officer in the Organisation has been authorised to advice upon the existence of
vigilance angle in a particular case.
4

In respect of lapses for below matters, matter may be treated as Administrative in nature and the
38

same need not be referred to IAC/ CVO:

81

1) Interest Subvention not claimed

2) Banking Ombudsman penalty imposed on the Bank

3) Education loan interest not claimed

4) Non Coverage of eligible borrowal accounts under CGTMSE/CGFMU

5) Non reporting of NPA accounts under CGTMSE portal

6) Penalty imposed by regulators

7) Unauthorised Absence

42
 8) Behavioral aspects of the Staff

9) Non-compliance of statutory obligations

10) Erosion of Income

11) Delay in customer service

12) Failure to inspect ATM as per Procedure.

13) Compensation paid by the bank for delay in release of movable / immovable property
documents on closure of loan account.

However, for all the above matters as well as other matters (other than unauthorised absence and
behavioral aspects of the staff), if any, where lapses exist and IAC/CVO concurrence is not required,
the matter shall be referred to IR Section, HR Wing along with circle views.

For all Administrative matters,(other than unauthorized absence and behavioral aspects of the staff)

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appropriate Disciplinary action may be initiated by Disciplinary Authority at IR Section, HR Wing (in
the case of officer employees).

No administrative matter to be allowed to rest / closed without any action, without prior

1
concurrence of CGM/GM, IR section, HR Wing.

:1
As enumerated in CVC Manual 2017, the following points were deliberated with reference to the
12
above matter. 1.4.1 Vigilance angle is obvious in the following acts:

A. Chapter I – Vigilance Administration – Para 1.4.1, 1.4.2 and 1.4.3:

4
02

Sl. No Element of Vigilance Angle

1 Demanding and / or accepting gratification other than legal remuneration in
/2

respect of an official act or for using his influence with any other official.
2 Obtaining valuable thing, without consideration or with inadequate
6

consideration from a person with whom he has or is likely to have official

/0

dealings or his subordinates have official dealings or where he can exert

influence.
11

3 Obtaining for himself or for any other person any valuable thing or pecuniary
advantage by corrupt or illegal means or by abusing his position as a public
servant.
4

4 Possession of assets disproportionate to his known sources of income

38

5 Cases of misappropriation, forgery or cheating or other similar criminal

offences.
6 Gross or willful negligence; recklessness in decision making; blatant violations
81

of systems and procedures; exercise of discretion in excess, where no

ostensible public interest is evident; failure to keep the controlling authority /
superiors informed of required transactions and issues in time; cause of undue
loss or a concomitant gain to an individual or a set of individuals / a party or
parties;
7 Any undue / unjustified delay in the disposal of a case, perceived after
considering all relevant factors, would reinforce a conclusion as to the
presence of vigilance angle in a case.

B. Chapter VIII - Specific Issues Related to Public Sector Banks & Insurance Companies –
Para 8.1.1 and 8.1.2:

43
 Sl. No Element of Vigilance Angle
1 Irregularities in opening of accounts leading to the creation of fictitious
accounts
2 Recurrent instances of sanction of Overdrafts (ODs) in excess of discretionary
powers / sanctioned limits without reporting
3 Frequent instances of accommodations granted to a party against norms e.g.
discounting bills against bogus MTRs; purchase of bills when bills had earlier
been returned unpaid; affording credits against un-cleared effects in the
absence of limits and opening Letter of Credits (LCs) when previously opened
LCs had devolved
4 Cases in which there is a reasonable ground to believe that a penal offence has
been committed by the alleged official but the evidence forthcoming is not
sufficient for prosecution in a court of law e.g. possession of disproportionate
assets
5 Misappropriation of Banks property, money or stores
6 Falsification of Bank’s records

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7 Disclosure of secret or confidential information even though it does not fall
strictly within the scope of Bank’s Secrecy issues
8 False claims on the Bank viz. TA claims, reimbursement claims, etc.
9 Failure to take necessary action to protect the interest of the Bank

1
10 Sacrificing/ignoring the interest of the Bank and causing loss to the Bank.

:1
11 Has not acted in accordance with rules and his recommendations are not in the
interest of the Bank
12
12 Has failed to conduct himself in such a manner that his decisions or
recommendations do not appear to be objective and transparent and seem to
be calculated to promote improper gains for himself or for anyone else
4

13 Has acted in a manner to frustrate or undermine the policies of the Bank or

02

decisions taken in the Bank’s interest by the management

14 Seems to have complied with unauthorised and unlawful oral instructions of
his seniors without bringing them to the notice of the Competent Authority as
/2

per extant guidelines

6

15 Has exceeded his discretionary powers and his actions do not appear
justifiable or to serve Bank’s interest
/0

16 Has abused or misused his official position to obtain benefit for himself or for
11

another

The SASC-RO, SASC-CO & SASC-HO while dealing with the scrutiny of staff accountability reports
4

under clause No.7.8, 7.9 & 7.10 supra shall also take into consideration of the above.
38

8.3 It is also stated that vigilance activity in financial institutions is an integral part of the managerial
function. The raison d’être of such activity is not to reduce but to enhance the level of managerial
81

efficiency and effectiveness in the organisation. Therefore, while accountability has to be examined
in respect of losses caused to the organisation, every loss pecuniary or non- pecuniary, need not
necessarily become the subject matter of a vigilance enquiry. It would be quite unfair to use the
benefit of hindsight to question the technical merits of managerial decisions from vigilance point of
view. A distinction has to be drawn between a business loss, which has arisen as a consequence of a
bonafide commercial decision, and an extraordinary loss, which has occurred due to any malafide,
motivated or reckless performance of duties. While the former has to be accepted as a normal part
of business and need not be proceeded with, the latter has to be viewed adversely and dealt with
under the extant disciplinary procedures.

8.4 Where there is a prima facie case of a fraud, forgery, falsification of records, suppression of material
facts, bribery, etc., the matter must be viewed seriously and accountability fixed accordingly, without
44
 reference to the loss that may be suffered by the bank, for, the bank basically relies on the faith and
confidence in each of the employee.
8.5 In addition to the above, irregularities viz. gross or willful negligence, recklessness in decision
making, blatant violations of systems and procedures, exercise of discretion in excess where no
ostensible/public interest is evident, failure to keep the controlling authority/superiors informed in
time, failure to report to the Controlling Authority with the intention to suppress/conceal
information etc., are to be looked into to come to a conclusion whether there is reasonable ground
to doubt the integrity of the officer concerned.

8.6 Any undue/unjustified delay in the disposal of the case, perceived after considering all relevant
factors, would reinforce a conclusion as to the presence of vigilance angle in a case.

8.7 Circles have to refer all investigation reports to SASC-RO/SASC-CO/ SASC-HO as the case may be as
per the procedures mentioned in chapter 7 of this policy, and wherever staff lapses have been
identified shall place the matter before Internal Advisory Committee (IAC) constituted at Head Office
for the purpose of examining existence of ‘vigilance angle’ or otherwise through IR Section, HR Wing,

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Head Office, Bangalore. The IAC shall be a committee of Chief General Managers/ General Managers
at Head Office to be constituted as per the orders of MD & CEO through HR Wing, Head office. The
minimum quorum for any meeting shall be three members. The IAC in turn will send their views to
Chief Vigilance Officer. The Vigilance Wing shall give their advice within reasonable time to the

1
respective Disciplinary Authority. The DA shall examine the advice / recommendations of CVO and

:1
take steps for further action. In case DA disagrees with CVO’s recommendations for the reasons to
be stated in writing, the CVO shall place the matter before MD &CEO, and if the difference persists,
12
the matter to be reported to CVC by the CVO for taking a final call.

8.8 As per CVC guidelines, the CVO is required to get the accountability reports in a routine manner
4

irrespective of the fact whether there is vigilance angle or not in all case of High Value NPA accounts
(where the sanction is for Rs.30 Crore and above accounts). Therefore, CO/HO should refer all such
02

accountability report to the CVO for scrutiny within reasonable time through SASC-CO/ SASC-HO as
prescribed under Chapter 7 of this policy.
/2

9.0 DEALING WITH NON-VIGILANCE CASES:

6
/0

On examination of the staff accountability, if it is found that there were no vigilance aspects and the
lapses leading to pecuniary loss to the bank were non-vigilance, it has to be determined as to the
11

extent to which each lapse and the individual to whom the lapse is attributed contributed to the
failure. The Investigation report shall clearly delineate these aspects with precision and accuracy
adhering to the facts on record. The report may then be referred for further necessary departmental
4

action. Finalising the departmental action essentially involves a decision on how the lapses
38

attributed to the various functionaries are to be viewed — whether to condone, caution, treat
leniently or initiate appropriate penal action. In doing this, a reference may be made to the overall
record and contribution of the official to whom lapses have been attributed in the report on
81

accountability.

10.0 ROLE OF CONTROLLING OFFICES:

10.1 Controlling Offices have an important role to play having firsthand information on the functioning
of the Branches under their jurisdiction. Laxity in Internal Control, sudden spurt in advances figure,
deviation in the set guidelines / exceeding of delegated powers at the Branches as made known on
perusal of the Control Returns / periodical visit to the Branch need to be dealt with in time. Failure
to review control returns (including inspection report, charge taking reports and BCS) at monitoring
level could be treated as contributory lapses.

45
10.2 Procrastination / delay in taking / conveying decisions without justifiable reasons, tendency to give
telephonic instructions without confirming the same subsequently in writing, awarding contracts /
accepting tenders without complying with the laid down norms, not providing required guidance
when sought by Branches on specific issues, lack of regular follow-up / monitoring on issues
requiring such follow-up, etc., could also be treated as contributory lapses.

11.0 ROLE OF INSPECTING OFFICIALS:

Branches / administrative offices are subjected to various inspections at periodic intervals.
Inspecting Officials are enjoined to bring to light cases of serious lapses in monitoring and
administration of the credit portfolio, internal control detected during the course of branch
inspection. Concealment, suppression or omission of facts in the Inspection Report will render them
accountable. At the same time, inspection report must also appear to be free of motivation to witch-
hunt which if comes to light will be dealt with equally if not more seriously. Reports submitted
should be based on facts/records and not on individual opinion/ perception/ presumption or
assumption.

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12.0 GENERAL GUIDELINES WITH REGARD TO IMPOSITION OF PUNISHMENTS BY THE
DISCIPLINARY AUTHORITIES:

While imposing a punishment, the disciplinary authority should ensure that the punishment

1
imposed is commensurate with the gravity of the misconduct proved against the employee. He may

:1
also take into account at this stage the following other criteria:
12
a. The extenuating circumstances, as they emerge from the inquiry; and
b. The track record of the charged employee.
4

It should also be ensured that the punishment so imposed is not academic or ineffective; for example,
there is no point in imposing a penalty of withholding of an increment, if the employee has already
02

been drawing pay at the maximum of the pay scale. Similarly, there is no point in imposing a penalty
of withholding of promotion for a specified period if the officer is not due for promotion.
/2

12.1 Recovery of loss caused to the bank:

6
/0

12.1.1 Generally, recovery of loss from the employees should not be ordered/resorted to
unless he has benefited from his act either monetarily or otherwise.
11

If an employee is involved in a fraud and has directly or indirectly benefited from his
fraudulent acts of omission/commission, the punishment should be stiff and severe like
4

Dismissal or Removal which entails the forfeiture of his pension.

38

The financial loss caused should also be recovered from him and/or from his terminal
benefits invoking Regulation 19 of the Provident Fund Rules or under Regulation 43, 48
81

and 49 and under the other relevant provisions of the Canara Bank Employees’ Pension
Regulations, 1995, and the relevant clauses/ provisions/ sections of the Gratuity Fund
Rules/Canara Bank (Officers’) Service Regulations, 1979/Payment of Gratuity Act etc.

However, before adjusting the amount from his terminal benefits a show-cause notice
should be issued to him by the Circle Head informing him the quantified loss caused to
the bank in the matter and asking him to show cause as to why the amount so quantified
should not be recovered/forfeited from his PF/Gratuity /terminal benefits.

In case the terminal benefits are not sufficient to recover the loss caused to the bank
from employees who have committed the fraud/ misappropriation/ embezzled, steps
should be taken to file a civil suit against such employees in order to recover the loss
46
 suffered by the Bank due to the fraud committed by them by following the guidelines
given hereunder:
a. In all fraud cases which have resulted in loss to the Bank and where there is a direct
or indirect involvement of the employees, the Circle should take necessary steps to
file a civil suit for recovery of the amount of loss caused to the Bank.

b. After recovering the available amounts from the terminal benefits by the HRM
Section concerned, the papers shall be transferred to the concerned Recoveries &
Legal Section for filing a suit to recover the balance amount of loss as per law.

c. Not only at the time of taking the decision to file the suit, but also as on the date of
filing the suit, Circles should ensure / get confirmation that the employee is having
sufficient means and assets either by way of movable or immovable property to
make good loss and that the chances of recovery are bright. Circles to also ensure
that Attachment before Judgment [ABJ] is obtained to protect the assets from
alienation.

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d. It should also be confirmed by the Circle that all relevant and necessary records /
witnesses are available for the purpose of filing a suit and obtaining the decree in
favour of the Bank.

1
:1
e. After verifying the availability of the assets of the employee, the suit claim may be
restricted only to the extent of availability of recoverable assets and the matter
12
may be taken up with IR Section, Human Resources Wing, Head Office for waiver
of the balance amount, if any, at the appropriate time.
4

f. Wherever the cases are investigated or with the CBI / Police authorities, the
decision to file the suit may be taken by the R & L Section of the Circle in
02

consultation with IR Section, Human Resources Wing, Head Office, Bangalore with
regard to the availability of original documents, period of limitation and other
/2

relevant factors.
6

g. Wherever the Circle feels that it is not feasible or advisable to file the suit, the
/0

matter may be taken up by way of a self-contained note to IR Section, Human

Resources Wing, Head Office, for necessary permission.
11

12.1.2 In a case where, other than that of fraud or involving honesty/integrity, the charges
proved (with or without loss to the bank,) against the employee are serious enough for
4

the Disciplinary Authority to decide that his continuation in the services is not in the
38

best interest of the bank, the Disciplinary Authority may impose the punishment of
Compulsory Retirement instead of Dismissal or Removal. The raison d’être of such a
decision is to extend some retiral benefits like Pension/Provident Fund and Gratuity to
81

the compulsorily retired employee unlike in a case of Dismissal or Removal. As such the
terminal benefits need not be adjusted towards loss, if any, caused to the bank in such
cases.

12.2 Apart from fraud matters, wherever the loss has been caused to the bank due to negligence on the
part of the employees e.g. in the case of wrong postings /wrong crediting of cheques/ DD’s or
through deliberate acts of fraud committed by outsiders where our employees are victims of
circumstances Circles should first make all possible efforts to recover the loss/amounts from the
customers / unintended beneficiaries/fraudsters.

Recovery from the employees concerned for their negligence should be only as a last resort when it
is confirmed that recovery is not possible from the customer / unintended beneficiary. Such
47
 recovery also, incases of negligence, generally should be for a reasonable amount taking into account
the quantum of loss vis-à-vis the degree of the negligence.

13 GENERAL GUIDELINES ON PROCESSING REQUESTS RECEIVED UNDER SECTION 17(A) OF

PREVENTION OF CORRUPTION (AMENDMENT) ACT, 2018:

Section 17 A was introduced in the Prevention of Corruption Act, 1988 (PC Act) vide its amendment
during 2018. The said Section 17 A as applicable to Banks read as under:

“No Police Officer shall conduct any enquiry or inquiry or Investigation into any offence alleged
to have been committed by a public servant under this Act, where the alleged offence is relatable
to any recommendation made or decision taken by such Public servant in discharge of his
official functions or duties, without the previous approval –
(c) in case of any other person of the authority competent to remove him from his office at the
time when the offence was alleged to have been committed”.

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As such, permission of the Competent Authority U/s 17 (A) is necessary to conduct any enquiry or
inquiry or Investigation against a public servant.

13.1 APPLICABILITY:

1
:1
Applicable for the public servants against whom investigating agencies sought permission from the
Competent Authority U/s 17 (A) of PC (Amendment) Act, 2018.
12
Investigating agencies includes CBI as well as state level CID/ACBs, local police who intends to
proceed against public servants for the alleged offences under Prevention of Corruption Act.
4

13.2 TIME NORMS FOR PROCESSING:

02

As per the aforementioned act, the Competent Authority shall convey its decision under Section
/2

17(A) within a period of three months, which may, for reasons to be recorded in writing by such
authority, be extended by a further period of one month.
6
/0

The above statutory time norms applicable from the date of submission of complete proposal by the
investigating agencies.
11

13.3 PROCEDURE FOR PROCESSING REQUEST RECEIVED U/S 17(A) OF PREVENTION OF

CORRUPTION (AMENDMENT) ACT, 2018:
4
38

For processing proposals from investigating agencies U/s 17(A) of PC Act, the Asst. General Manager,
overseeing Disciplinary Matters at IR Section, HR Wing, Head Office shall act as a nodal officer, for
receiving / submitting back such proposals to investigating agencies (incl. CBI).
81

i. CBI / any other investigating agencies submit their proposal U/s 17(A) of PC Act to the
nodal officer i.e. the Asst. General Manager at HR Wing, HO. If any Circle Office receives
proposals U/s 17 (A) directly from CBI / any other investigating agency, such proposals
shall be forwarded to the nodal officer at HO.
ii. The nodal officer shall ensure that the proposal is in accordance with the requirements
laid down in the Check List as per Annexure VIII and encloses clear, legible and
authenticated documents, as may be required. Incomplete proposals shall be returned
for removing inadequacies and deficiencies for being addressed by the Police Officer of
the Appropriate Rank within a reasonable period of time and expeditious submission of
the complete proposal. Appropriate Rank of the Police Authorities for seeking
48
 permission U/s 17A against the Public Servants depends on their cadre is enclosed as
Annexure IX, which the nodal officer / Competent Authorities shall ensure before
accepting / processing such requests.
iii. Upon receipt of complete proposal against each official at the nodal officer’s end, such
proposals to be forwarded to respective Competent Authorities (at CO level & HO level)
to take decision in the matter. The statutory timelines for processing of the proposal
shall be from the date of receipt of complete proposal duly acknowledged by the nodal
officer.
iv. The Competent Authority shall examine the proposal U/s 17A of PC Act by independent
application of mind and take appropriate decision.
v. In this process, legal consultation, if required by the Competent Authority to dispose the
references received U/s 17 A of the said act may be provided. However, the Competent
Authority shall take due diligence to maintain secrecy at all stages including the legal
consultation process.

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vi. The Competent Authority at Circle Offices i.e. Asst. General Manager at CO may take legal
assistance from respective R & L Section at CO and the Competent Authority at HO may
take legal assistance from RL & FP Wing, HO.
vii. Respective Competent Authorities shall forward their final decision to the nodal officer

1
at HR Wing.
viii.
:1
In turn, the nodal officer will submit the decision taken by the respective competent
authorities to CBI / investigating agencies.
12
14 PROCEDURE FOR REFERRING THE CASES TO ADVISORY BOARD FOR BANKING AND
FINANCIAL FRAUDS (ABBFF) CONSTITUTED BY CVC:
4
02

In respect of credit related frauds of Rs. 3.00 Crores and above complaints should be filed with the
Investigating agencies by mentioning “UNKNOWN PUBLIC SERVANTS” and names of the officials
need not be mentioned in the complaint. The names of officials should be given as accused only after
/2

obtaining advice from ABBFF constituted by CVC. ABBFF advice is required for all officials / WTDs.
6

14.1 APPLICABILITY:
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Loan related fraud cases above Rs. 50.00 Cr:

11

a. Reported to RBI on or after 21.08.2019

b. Reported to RBI prior to 21.08.2019 but reached the Disciplinary Authority through IAC and
4

CVO on or after 21.08.2019

38

Loan related fraud cases of Rs. 3.00 Cr and upto Rs. 50.00 Cr:
81

a. Fraud cases reported to RBI on or after 06.01.2022

b. Reported as fraud prior to 06.01.2022 but reached the Disciplinary Authority through IAC
and CVO on or after 06.01.2022
c. Reported as fraud prior to 06.01.2022 but criminal complaint is yet to be filed with
investigating agencies.

14.2 TIME NORMS FOR REFERRING CASES TO ABBFF:

Sl. Description Model Timeline

No.

49
 i. Start date or Zero date Date of FMR – 1 submitted to
RBI
ii. Conducting Internal Investigation & submission of Within 90 days from date of
final Investigation Report (IR) [if required]** FMR-1
iii. Presentation of case to IAC for classification: OVERALL - 55 days from the date of IR
(145 days from Zero Date)

 Explanation letters to be issued

to erring employees : Within 15 days of Investigation report
 Reply of employee : in 15 days (further extendable by 5
days)
 Presentation to IAC: Within 10 days of receipt of explanation
 Conduct of IAC and its report : Within 10 days

**If fraud is reported on the basis of Internal Investigation Report, then fresh
Investigation may not be conducted.

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Note: Role of respective IAC is to evaluate and advise the CVO on its assessment of
the lapses as “Vigilance or Non-Vigilance” in accordance with the roles and
responsibilities of the erring official and strictly in line with the guidance given in

1
Chapter VIII of CVC Manual, 2017. IAC must refer the respective sub-sections of the

:1
Para 8.1.1/8.1.2 of the Manual in its advice to CVO.
iv. CVO's advice to DA/in case of WTDs reference to DFS Within 15 days of the IAC
12
report to CVO (160 days from
Zero Date)
v. DA's Tentative Classification as Vigilance/Non- Within 15 days of CVO’s Advice
4

Vigilance (175 days from Zero Date)

02

• Additional Cushion
Period: 5 days for
/2

overall process
• Max
6

Period for
completion of SAR in
/0

Fraud cases : 180 Days

11

vi. Reference by PSB & PSFIs to ABBFF in approved Within 7 days all cases to be put
Format up to ABBFF irrespective of
DA’s classification as Vigilance
or Non Vigilance
4

vii. In case of WTDs reference by DFS to ABBFF in Within 28 days of CVO’s

38

approved format reference

viii. ABBFF Advice Within 30 days #
81

# - Notes:
a. On receipt of first reference, a provisional reference number shall be assigned by the ABBFF
secretariat.
b. After ensuring all supporting documents were submitted, a final reference number shall be
assigned.
c. The 30-day timeline for ABBFF recommendation would commence from the date of assigning
the final reference number (in the format as explained in Annexure to ABBFF SOP).

14.3 PROCEDURE TO BE FOLLOWED FOR REFERRING CASES TO ABBFF:

50
 a. Once a borrower account is declared as fraud (total fraud involving amount of Rs. 3.00 Cr
and above), the Banks will immediately take action as per the RBI guidelines, including
reporting to RBI and filing complaint against the perpetrators with law enforcement
agencies under provisions of IPC, CrPC, Prevention of Corruption Act
b. In all cases of fraud involving amount Rs. 3.00 Cr and above, while lodging the complaint
with investigating agencies i.e. CBI; it should be ensured that the complaint is filed by
mentioning “Unknown Public Servants” only.
c. In exposures under consortium or Multiple Banking arrangement, the threshold value of
total amount involved of Rs. 3.00 Cr and above would be reckoned for each Bank separately.
d. Once a loan account of above Rs. 3.00 Cr is declared as fraud and is reported to RBI, RL & FP
Wing shall immediately share the details of eligible cases with Vigilance Wing to refer to
ABBFF with a copy marked to IR Section, H R Wing, Head Office.
e. The above model timelines for making references to ABBFF are to be strictly adhered to.
f. The reference to ABBFF will be submitted in the prescribed format (Annexure- X) along

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with the following papers:
 The note put up to IAC
 Views of IAC, CVO and DA

1
 Bio data of the officials for whom the reference is being made

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g. While referring the matter to ABBFF, the facts of the case as brought out in the submission
12
on prescribed format should specifically bring out the involvement of each official in the
account. Even the cases where Nil / No Staff accountability is observed also need to be
referred to ABBFF for their advice.
4

h. All references received by ABBFF Secretariat will be acknowledged and a case number will
02

be allotted to each reference. Care is to be taken to include complete details without any
blanks or omissions as the ABBFF final case number will be allotted only on references being
/2

found complete in all respects.

i. The hard copies of the case and supporting documents should be sent to the ABBFF
6

secretariat and the soft copies of the documents may be sent in the generic email id of the
/0

ABBFF Secretariat which can be accessed by the ABBFF members only through CVO of the
Bank.
11

j. All cases of Rs. 3 Crores and above, ABBFF would restrict its advice on the matter relating to
malafide intent/Criminality of officials with provisions contained in the Prevention of
4

Corruption (Amendment) Act, 2018. The advice of ABBFF will be made available to the
Investigating agencies.
38

k. The CVO of the concerned Bank will be the interface for interaction with ABBFF and
81

he/she will be the one-point contact with the Bank.

l. The ABBFF may, if required, ask the respective CVO and/or the concerned GM/CGM handling
the case to make a short presentation and to respond to any queries that ABBFF may have.
15. POWER TO ISSUE INSTRUCTIONS & RESIDUARY PROVISIONS:

15.1 The Chief General Manager and in his absence, General Manager of the HR Wing shall be the
competent authority for issuing/giving any clarifications/instructions in case of any
anomaly/difference with regard to interpretation and implementation of this policy.

15.2 This Staff accountability policy stands with effect from 01.04.2022. Since this policy is effective from
01.04.2022, all accounts which turned into NPA on or before 31.03.2022 will be covered under the

51
 earlier policy only (Cir 394/2021 dated 08.06.2021). For the irregularities observed in NON-NPA
accounts/Non-Credit matters, guidelines issued in this policy has to be followed.

15.3 Any decisions taken, punishments imposed prior to the effective date of this policy shall not be
reopened on account of this policy.

15.4 This policy shall be read in conjunction with the Manual of Instructions, Circulars and updation of
instructions from time to time and if there is any divergence, the manual etc., shall have overriding
effect on the provisions of this policy.

15.5 Non adherence to the instructions / directions of Superior Authority including Board of Directors/
Management Committee of the Board / Other Sub Committees constituted by or under the orders of
the Board shall be considered as staff lapse and accordingly steps shall be initiated.

16 It may be mentioned here that the imposition of a punishment on an official would not influence his
future career prospects including promotion beyond the period of rigor.

PM
1
:1
12
4
02
6 /2
/0
11
4
38
81

52
 ACCOUNTS OUTSTANDING UPTO RS. 10 LAKHS

EVENT TIME PERIOD CUMULATIVE TIME

TAKEN
DATE OF IRREGULARITY COMING TO LIGHT DAY 0
ENTRUSTMENT FOR SUBMISSION OF ANNEXURE I/ 15 DAYS THEREON DAY 15
INVESTIGATION REPORT FROM INSPECTION WING
(FOR FRAUD/SUSPECTED FRAUD ACCOUNTS)
SUBMISSION OF ANNEXURE I BY THE OFFICIAL 30 DAYS THEREON DAY 45
DEPUTED BY RO/CO / INVESTIGATION REPORT
FROM INSPECTION WING
PLACING THE REPORT (ANNEXURE - I) BY CRM 15 DAYS THEREON DAY 60
SECTION RO/ CR & M SECTION, CO BEFORE SASC-
RO/CO
IN CASE OF CRYSTALLISED LAPSES, CALLING FOR 14 DAYS THEREON DAY 74
EXPLANATION FROM THE ERRING OFFICIALS AS

PM
ORDERED BY SASC-RO/SASC-CO
RECEIPT OF REPLY,ANALYSING THE SAME BY CRM 20 DAYS THEREON DAY 94
SECTION, RO/ CR & M SECTION, CO AND
FORWARDING SCN TO HRM SECTION FOR

1
SUBMISSION OF IAC NOTE TO HO

:1
SUBMISSION OF IAC NOTE TO HO BY HRM SECTION, 6 DAYS THEREON DAY 100
CO
12
PLACING OF IAC NOTE TO THE INTERNAL 10 DAYS THEREON DAY 110
ADVISORY COMMITTEE AT HO AND FORWARDING
THE SAME TO VIGILANCE WING FOR
4

CONCURRENCE
02

CONCURRENCE BY CVO AND COMMUNICATING 10 DAYS THEREON DAY 120

THE SAME TO THE DA/CIRCLE
/2

NOTE:
6

1. THE ABOVE TIME LINE IS ONLY ILLUSTRATIVE AND IT SHALL BE THE RESPONSIBILITY OF
THE CRM SECTION, REGIONAL OFFICE, CR & M SECTION AND HRM SECTION, CO TO ENSURE
/0

THAT BEST EFFORTS ARE PUT IN FOR ENSURING SUBMISSION OF IAC NOTE TO HO WELL
WITHIN THE ABOVE-MENTIONED TIME PERIOD.
11

2. IN CASE OF FRAUD ACCOUNTS, INSPECTION WING, HO SHALL ENSURE CONDUCT OF

INVESTIGATION AND SUBMISSION OF INVESTIGATION REPORT WITHIN A PERIOD OF 30
4

DAYS FROM THE DATE OF REFERRING THE MATTER FOR INVESTIGATION.

38
81

53
 ACCOUNTS OUTSTANDING ABOVE RS. 10 LAKHS AND UPTO RS. 1 CRORE

EVENT TIME PERIOD CUMULATIVE TIME TAKEN

ACCOUNT BECOMES NPA DURING THE END OF THE CALENDAR DAY 0
QUARTER/ IRREGULARITIES OBSERVED QUARTER/ DATE OF
IN OTHER ACCOUNTS IRREGULARITY COMING TO
LIGHT FOR OTHER ACCOUNTS
PLACING OF ANNEXURE - II AND 15 DAYS THEREON DAY 15
SUPPORTING DOCUMENTS TO SASC-
RO/SASC-CO BY CRM SECTION, RO / CR &
M SECTION CO
INCASE OF IRREGULARITIES ARE 30 DAYS THEREON DAY 45
OBSERVED, ENTRUSTMENT FOR STAFF
ACCOUNTABILITY REPORT AND
OBTENTION OF REPORT
PLACING STAFF ACCOUNTABILITY 15 DAYS THEREON DAY 60
REPORT TO SASC-RO/CO WHEREEVER

PM
APPLICABLE
IN CASE OF CRYSTALLISED LAPSES, 15 DAYS THEREON DAY 75
CALLING FOR EXPLANATION FROM THE
ERRING OFFICIALS AS ORDERED BY SASC-
RO/SASC-CO

1
RECEIPT OF REPLY, ANALYSING THE 20 DAYS THEREON DAY 95

:1
SAME BY CRM Section, RO / CR & M
SECTION, CO AND FORWARDING SCN TO
12
HRM SECTION CO FOR SUBMISSION OF
IAC NOTE TO HO
SUBMISSION OF IAC NOTE TO HO BY HRM 5 DAYS THEREON DAY 100
4

SECTION, CO
PLACING OF IAC NOTE TO THE INTERNAL 10 DAYS THEREON DAY 110
02

ADVISORY COMMITTEE AT HO AND

FORWARDING THE SAME TO VIGILANCE
/2

WING FOR CONCURRENCE

CONCURRENCE BY CVO AND 10 DAYS THEREON DAY 120
6

COMMUNICATING THE SAME TO THE

DA/CIRCLE
/0

NOTE:
11

1. THE ABOVE TIME LINE IS ONLY ILLUSTRATIVE AND IT SHALL BE THE RESPONSIBILITY OF
THE CR & M SECTION AND HRM SECTION, CO TO ENSURE THAT BEST EFFORTS ARE PUT IN
FOR ENSURING SUBMISSION OF IAC NOTE TO HO WELL WITHIN THE ABOVE-MENTIONED
4

TIME PERIOD OF 100 DAYS FROM THE END OF THE CALENDAR QUARTER OF THE ACCOUNT
38

BECOMING NPA.
81

2. WHEREVER THE MATTER IS TO BE REFERRED FOR STAFF ACCOUNTABILITY REPORT, CR &

M SECTION AND HRM SECTION, CO SHALL ENSURE SUBMISSION OF IAC NOTE TO HO WELL
WITHIN THE ABOVE-MENTIONED TIME PERIOD OF 100 DAYS FROM THE END OF THE
CALENDAR QUARTER OF THE ACCOUNT BECOMING NPA AFTER DULY FOLLOWING THE
PROCEDURE AS ENUMERATED IN THE POLICY.

3. INCASE OF FRAUD ACCOUNTS, INSPECTION WING, HO SHALL ENSURE CONDUCT OF

INVESTIGATION AND SUBMISSION OF INVESTIGATION REPORT WITHIN A PERIOD OF 30
DAYS FROM THE DATE OF REFERRING THE MATTER FOR INVESTIGATION.

54
 ACCOUNTS OUTSTANDING ABOVE RS. 1 CRORE AND UPTO RS. 50 CRORE (IF ACCOUNT IS
HANDLED AT CR & M SECTION, CO)

EVENT TIME PERIOD CUMULATIVE TIME TAKEN

ACCOUNT BECOMES NPA DURING END OF THE CALENDAR DAY 0
THE QUARTER/ IRREGULARITIES QUARTER/ DATE OF
OBSERVED IN OTHER ACCOUNTS IRREGULARITY COMING TO
LIGHT FOR OTHER ACCOUNTS
PLACING OF ANNEXURE - IV AND 15 DAYS FROM THE END OF THE DAY 15
SUPPORTING DOCUMENTS TO CALENDAR QUARTER
SASC-CO BY CR & M SECTION CO
INCASE OF IRREGULARITIES ARE 30 DAYS FROM THEREON DAY 45
OBSERVED, ENTRUSTMENT FOR
INVESTIGATION REPORT AND
OBTENTION OF INVESTIGATION
REPORT
PLACING OF SCN TO SASC-CO BY 15 DAYS THEREON DAY 60

PM
CR & M SECTION CO
IN CASE OF CRYSTALLISED 15 DAYS THEREON DAY 75
LAPSES, CALLING FOR
EXPLANATION FROM THE
ERRING OFFICIALS AS ORDERED

1
BY SASC-CO

:1
RECEIPT OF REPLY, ANALYSING 20 DAYS THEREON DAY 95
THE SAME BY CR & M SECTION
12
AND FORWARDING SCN TO HRM
SECTION FOR SUBMISSION OF IAC
NOTE TO HO
4

SUBMISSION OF IAC NOTE TO HO 5 DAYS THEREON DAY 100

BY HRM SECTION, CO
02

PLACING OF IAC NOTE TO THE 10 DAYS THEREON DAY 110

INTERNAL ADVISORY
/2

COMMITTEE AT HO AND
FORWARDING THE SAME TO
6

VIGILANCE WING FOR

CONCURRENCE
/0

CONCURRENCE BY CVO AND 10 DAYS THEREON DAY 120

COMMUNICATING THE SAME TO
11

THE DA/CIRCLE

NOTE:
4

1. THE ABOVE TIME LINE IS ONLY ILLUSTRATIVE AND IT SHALL BE THE RESPONSIBILITY OF THE CR &
38

M SECTION AND HRM SECTION, CO TO ENSURE THAT BEST EFFORTS ARE PUT IN FOR ENSURING
SUBMISSION OF IAC NOTE TO HO WELL WITHIN THE ABOVE-MENTIONED TIME PERIOD OF 100 DAYS
FROM THE END OF THE CALENDAR QUARTER OF THE ACCOUNT BECOMING NPA.
81

2. WHEREVER THE MATTER IS TO BE INVESTIGATED, CR & M SECTION AND HRM SECTION, CO SHALL
ENSURE SUBMISSION OF IAC NOTE TO HO WELL WITHIN THE ABOVE-MENTIONED TIME PERIOD OF
100 DAYS FROM THE END OF THE CALENDAR QUARTER OF THE ACCOUNT BECOMING NPA AFTER
DULY FOLLOWING THE PROCEDURE AS ENUMERATED IN THE POLICY.

3. WHEREVER, ACCOUNT IS REFERRED FOR INVESTIGATION BY SASC-CO, INSPECTION WING, HO SHALL

ENSURE CONDUCT OF INVESTIGATION AND SUBMISSION OF INVESTIGATION REPORT WITHIN A
PERIOD OF 30 DAYS FROM THE DATE OF REFERRING THE MATTER FOR INVESTIGATION.

55
 ACCOUNTS OUTSTANDING ABOVE RS. 1 CRORE AND UPTO RS. 50 CRORE (IF ACCOUNT IS
HANDLED AT CAM WING, HO)

EVENT TIME PERIOD CUMULATIVE TIME

TAKEN
ACCOUNT BECOMES NPA DURING THE END OF THE CALENDAR DAY 0
QUARTER/ IRREGULARITIES OBSERVED IN QUARTER/ DATE OF
OTHER ACCOUNTS IRREGULARITY COMING TO
LIGHT FOR OTHER ACCOUNTS
PLACING OF ANNEXURE – IV AND 15 DAYS FROM THE END OF DAY 15
SUPPORTING DOCUMENTS TO SASC-HO BY THE CALENDAR QUARTER
CAM WING HO
INCASE OF IRREGULARITIES ARE OBSERVED, 30 DAYS FROM THEREON DAY 45
ENTRUSTMENT FOR INVESTIGATION
REPORT AND OBTENTION OF
INVESTIGATION REPORT
PLACING OF THE INVESTIGATION REPORT TO 15 DAYS THEREON DAY 60

PM
SASC-HO BY CAM WING HO
IN CASE OF CRYSTALLISED LAPSES, CALLING 15 DAYS THEREON DAY 75
FOR EXPLANATION BY CAM WING HO FROM
THE ERRING OFFICIALS AS ORDERED BY

1
SASC-HO
RECEIPT OF REPLY, ANALYSING THE SAME 15 DAYS THEREON DAY 90
BY CAM WING, HO AND FORWARDING SCN TO
HRM SECTION FOR SUBMISSION OF IAC NOTE
:1
12
TO HO
SUBMISSION OF IAC NOTE TO HO BY HRM 10 DAYS THEREON DAY 100
SECTION, CO
4

PLACING OF IAC NOTE TO THE INTERNAL 10 DAYS THEREON DAY 110

02

ADVISORY COMMITTEE AT HO AND

FORWARDING THE SAME TO VIGILANCE
WING FOR CONCURRENCE
/2

CONCURRENCE BY CVO AND 10 DAYS THEREON DAY 120

COMMUNICATING THE SAME TO THE
6

DA/CIRCLE
/0

NOTE:
11

1. THE ABOVE TIME LINE IS ONLY ILLUSTRATIVE AND IT SHALL BE THE RESPONSIBILITY OF
THE CR & M SECTION AND HRM SECTION, CO AND CAM WING, HOTO ENSURE THAT BEST
EFFORTS ARE PUT IN FOR ENSURING SUBMISSION OF IAC NOTE TO HO WELL WITHIN THE
4

ABOVE-MENTIONED TIME PERIOD OF 100 DAYS FROM THE END OF THE CALENDAR
QUARTER OF THE ACCOUNT BECOMING NPA.
38

2. WHEREVER THE MATTER IS TO BE INVESTIGATED, CR & M SECTION AND HRM SECTION, CO

81

AND CAM WING, HO SHALL ENSURE SUBMISSION OF IAC NOTE TO HO WELL WITHIN THE
ABOVE-MENTIONED TIME PERIOD OF 100 DAYS FROM THE END OF THE CALENDAR
QUARTER OF THE ACCOUNT BECOMING NPA AFTER DULY FOLLOWING THE PROCEDURE AS
ENUMERATED IN THE POLICY.

3. WHEREVER, ACCOUNT IS REFERRED FOR INVESTIGATION BY SASC-HO, INSPECTION WING,

HO SHALL ENSURE CONDUCT OF INVESTIGATION AND SUBMISSION OF INVESTIGATION
REPORT WITHIN A PERIOD OF 30 DAYS FROM THE DATE OF REFERRING THE MATTER FOR
INVESTIGATION.

56
 ACCOUNTS OUTSTANDING ABOVE RS. 50 CRORE

EVENT TIME PERIOD CUMULATIVE TIME

TAKEN
ACCOUNT BECOMES NPA DURING THE END OF THE CALENDAR DAY 0
QUARTER/ IRREGULARITIES QUARTER/ DATE OF
OBSERVED IN OTHER ACCOUNTS IRREGULARITY COMING TO
LIGHT FOR OTHER
ACCOUNTS
QUARTERLY REPORTING OF ACCOUNTS 5 DAYS FROM THE END OF DAY 5
SLIPPED TO NPA BY CR & M SECTION, THE CALENDAR QUARTER
CIRCLE OFFICE TO VIGILANCE WING, HO
UNDER INTIMATION TO CAM WING, HO

REFERRING THE MATTER TO 5 DAYS THEREON DAY 10

INSPECTION WING, HO BY CAM WING,
HO FOR CONDUCTING INVESTIGATION

PM
CONDUCT OF INVESTIGATION BY 30 DAYS THEREON DAY 40
INSPECTION WING, HO SUBMISSION OF
INVESTIGATION REPORT TO CAM WING,
HO

1
PLACING THE MATTER TO SASC-HO BY 15 DAYS THEREON DAY 55

:1
CAM WING HO AND FORWARDING THE
SAME TO VIGILANCE WING FOR
12
SCRUTINY
COMPLETION OF SCRUITNY BY 15 DAYS THEREON DAY 70
VIGILANCE WING, HO AND COVEYING
THE ADVICE OF THE CVO TO HR WING/
4

CAM WING/ CO
02

INCASE OF CRYSTALLISED LAPSES, 15 DAYS THEREON DAY 85

CALLING FOR EXPLANATION AND
PLACING REPLIES SASC-HO
/2

IN CASE OF CRYSTALLISEDLAPSES 15 DAYS THEREON DAY 100

6

SUBMISSION OF IAC NOTE TO HO BY

HRM SECTION
/0

PLACING OF IAC NOTE TO THE 10 DAYS THEREON DAY 110

INTERNAL ADVISORY COMMITTEE AT
11

HO AND FORWARDING THE SAME TO

VIGILANCE WING FOR CONCURRENCE
CONCURRENCE BY CVO AND 10 DAYS THEREON DAY 120
4

COMMUNICATING THE SAME TO THE

38

DA/CIRCLE

NOTE:
81

1. THE ABOVE TIME LINE IS ONLY ILLUSTRATIVE AND IT SHALL BE THE RESPONSIBILITY OF
THE CR & M SECTION AND HRM SECTION, CO AND CAM WING, HOTO ENSURE THAT BEST
EFFORTS ARE PUT IN FOR ENSURING SUBMISSION OF IAC NOTE TO HO WELL WITHIN THE
ABOVE-MENTIONED TIME PERIOD OF 100 DAYS FROM THE END OF THE CALENDAR
QUARTER OF THE ACCOUNT BECOMING NPA.

57
 ACCOUNTS OUTSTANDING ABOVE RS. 30 CRORE HANDLED BY CR & M SECTION OR BY CAM
WING (FOR CVO SCRUTINY)

EVENT TIME PERIOD CUMULATIVE TIME

TAKEN
ACCOUNT BECOMES NPA DURING THE END OF THE CALENDAR DAY 0
QUARTER QUARTER
PLACING ANNEXURE IV BEFORE SASC- 10 DAYS FROM THE END OF DAY 10
CO/HO BY CR & M SECTION, CO /CAM THE CALENDAR QUARTER
WING HO

REFERRING THE MATTER FOR 5 DAYS THEREON DAY 15

INVESTIGATION WHEREEVR ORDERED
BY THE COMMITTEE
OBTEBTION OF INVESTIGATION 30 DAYS THEREON DAY 45
REPORT BY INSPECTION WING, HO
PLACING THE REPORT TO SASC-CO/HO 5 DAYS THEREON DAY 50

PM
BY CR & M SECTION, CO/CAM WING HO
AND FORWARDING THE SAME TO
VIGILANCE WING FOR SCRUTINY
(INCASE OF SASC-CO ACCOUNTS, SAME

1
SHALL BE FORWARDED THROUGH CAM
WING)
COMPLETION OF SCRUITNY
VIGILANCE WING, HO AND COVEYING
BY 15 DAYS THEREON
:1 DAY 65
12
THE ADVICE OF THE CVO TO CAM WING
CALLING FOR EXPLANATION 15 DAYS THEREON DAY 80
WHEREVER LAPSES ARE OBSERVED ON
4

THE PART OF OFFICIALS

02

ANALYSIS OF REPLY AND PLACING THE 5 DAYS THEREON DAY 85

SAME BEFORE SASC-CO/HO
IN CASE OF CRYSTALLISED LAPSES 15 DAYS THEREON DAY 100
/2

SUBMISSION OF IAC NOTE TO HO BY

HRM SECTION
6

PLACING OF IAC NOTE TO THE 10 DAYS THEREON DAY 110

/0

INTERNAL ADVISORY COMMITTEE AT

HO AND FORWARDING THE SAME TO
11

VIGILANCE WING FOR CONCURRENCE

CONCURRENCE BY CVO AND 10 DAYS THEREON DAY 120
COMMUNICATING THE SAME TO THE
DA/CIRCLE
4
38

NOTE:
1. THE ABOVE TIME LINE IS ONLY ILLUSTRATIVE AND IT SHALL BE THE RESPONSIBILITY OF
81

THE CR & M SECTION AND HRM SECTION, CO AND CAM WING, HOTO ENSURE THAT BEST
EFFORTS ARE PUT IN FOR ENSURING SUBMISSION OF IAC NOTE TO HO WELL WITHIN THE
ABOVE-MENTIONED TIME PERIOD OF 100 DAYS FROM THE END OF THE CALENDAR
QUARTER OF THE ACCOUNT BECOMING NPA.

58
 NON-CREDIT MATTERS

IN RESPECT OF NON-CREDITMATTERS, THE RESPECTIVE HRM SECTION, CO AND IR SECTION, HR

WING, HO SHALL ENSURE THAT THE CASE IS BROUGHT TO A LOGICAL CONCLUSION WITHIN A
PERIOD OF 30 DAYS FROM THE DATE OF MATTER COMING TO LIGHT. WHEREVER IAC NOTE IS TO
BE SUBMITTED, THE SAME SHALL BE SUBMITTED TO HO WITHIN AN OVERALL PERIOD OF 60 DAYS
FROM THE DATE OF MATTER COMING TO LIGHT.

PM
1
:1
12
4
02
6 /2
/0
11
4
38
81

59
 ACCOUNTS OUTSTANDING UPTO Rs. 10.00 Lakhs
Wherever Staff Accountability has to be examined
1) Accounts which are sanctioned at Regional office shall be placed before SASC-CO
2) Branch/SME Sulabh and RAH Sanctioned accounts shall be placed before SASC-RO

SASC – RO/CO orders for

Preliminary Report

Report submission by the deputed

official (Annexure - 1)

PM
No Lapses Lapses

1
:1
Placed before SASC-RO/CO for taking decision on
lapses
12
4

No attributable Lapses are

02

Lapses crystallized
Closure by SASC-RO/CO
/2

Calling Explanation by CR & M

6

Section, CO under information

/0

to HRM Section, CO
11
4
38

Information to CR & M Section, CO if Reply is accepted

closed at RO Level, for information. Analysis of replies
and lapses are not
by SASC –RO/ CO
crystallized
81

Reply is not accepted

and Lapses are
crystallized

Closure by SASC-RO/CO. Forwarding papers to

Information to CR & M HRM Section for placing
Section, CO if closed at RO IAC 60
Level, for information.
 ACCOUNTS OUTSTANDING ABOVE Rs.10.00 Lakhs and upto Rs. 1.00 Crores
1) Accounts which are sanctioned at Regional office shall be placed before SASC-CO
2) Branch/SME Sulabh and RAH Sanctioned accounts shall be placed before SASC-RO

After account slipped to NPA, a brief note (Annexure - II) to be placed before SASC-RO/CO by
CRM Section/CR & M Section

If staff accountability to be examined

If staff accountability
need not be examined
If SASC-RO/CO orders for Staff Accountability

PM
Report, then respective section has to obtain
Staff Accountability Report in Annexure - III

1
:1
Staff Accountability Report to be placed before SASC-RO/CO
12
No staff lapses / No material lapse Staff Lapses
4
02
/2

Closure by SASC-RO/CO Explanation by CR & M Section

6
/0
11

Information to CR & M Section, Lapses are not

CO (If matter is closed at RO crystallized Analysis of reply and placing
level) Self-Contained Note to SASC-RO
by CRM Section or SASC-CO by
4

C.O. by CR & M Section, CO

38

Closure by SASC-
81

RO/CO
Lapses are
Crystallised

Information to CR & M
File forwarded to
Section, CO (if matter is
HRM Section, CO for
closed at RO level.)
placing IAC

61
Accounts outstanding from Rs. 1.00 Crore to Rs. 50.00 Crore:
1) Accounts Sanctioned upto RO Level shall be placed before SASC – CO
2) Accounts Sanctioned at CO and HO, shall be placed before SASC – HO
3) Accounts with outstanding Liability with Rs. 30.00 Crores and above to be placed before
CVO for Scrutiny.

Detailed Report (Annexure – IV) to be placed before SASC – CO/HO BY CR & M

Section, CO/CAM Wing, HO

No Irregularities are observed and

SASC-CO/HO ordered matter for Irregularities are observed and SASC-
CO/HO ordered for Investigation
closure

PM
Closure by respective Section Obtention of Investigation Report by respective
section

1
A/c handled by CAM Wing, HO

:1
A/c handled by CR & M Section, CO 12
Report to be placed before SASC-CO CAM wing HO shall place the report
before SASC-HO
4
02

Lapses NIL Lapses

NIL
/2

Lapses Lapses
6

Explanation to be
called by CR & M
/0

Section, CO and Replies

to be obtained Explanation to be called from
11

CAM Wing, HO and replies to

be received
4

Replies to be
analysed and to be Lapses are not
38

placed before SASC- crystallised

Replies to be analysed and Lapses not
CO to be placed before SASC-
81

crystallised
HO
Closure of the
Lapses are matter in Staff
Crystallized Angle after placing
the matter before Lapses are Crystallised
Circle Head

Closure of the matter in

Staff Angle after placing
the matter before Wing
Forward note to HRM Section, CO to place before IAC Head

62
 ABOVE RS.50.00 CRORE

Quarterly Reporting of Accounts slipped to NPA by CR & M Section,

Circle Office to Vigilance Wing, HO under intimation to CAM Wing,
HO (For accounts with outstanding balance of Rs.30.00 Crores and
above)

CAM Wing, HO to get the matter investigated through

Inspection Wing, HO

PM
Investigation report to be placed before SASC-HO

1
Matter forwarded to Vigilance Wing for Scrutiny

:1
12
In case of any clarification/ observations made by the CVO the same shall be
replied through CAM Wing.
4
02

No Lapses Lapses
6 /2
/0

Closure of matter by Vigilance and intimation to

11

CAM/HR Wing & conveying to Circle Explanation to be called by CAM Wing, HO

and reply to be obtained
4
38

Analysis of reply and placing before SASC-

Lapses are not crystallised
81

HO
against officials

Lapses are crystallized

Closure of matter by placing

note before CAM Wing CGM/GM
Matter to be forwarded to HRM Sec. C.O.,
through CR & M Section for placing the
matter to IAC

63
 ANNEXURE-I

FORMAT FOR PRELIMINARY REPORT

Applicable for Accounts with Outstanding upto Rs.10 lacs as on the date

(Wherever Complaints/Special Reports in RBIA indicates malifide/serious irregularities or

fraud/suspected fraud) (Refer Points 1 to 4 in Para 1.8.1.2 Page 8)

1 NAME OF THE ACCOUNT

2 ACCOUNT NO. WITH CUSTOMER ID
3 BRANCH
4 REGIONAL OFFICE
5 DATE OF ADVANCE
6 DATE OF LAST REVIEW/ RENEWAL
7 DATE OF LAST AOD, IF ANY

PM
8 DATE OF NPA
9 LIMIT
10 O/S BALANCE
11 VALUE OF SECURITY

1
I. PRIME

:1
II. COLLATERAL
12
12 OBSERVATIONS IN PREVIOUS 4 YEARS
AUDIT/RBIA REPORTS FROM THE DATE OF NPA
(a) RBIA Report Date: Date of Report Closed:
4

Observations Rectification/ Compliance Present Status

02
6 /2
/0
11
4
38
81

Note: In the above format, last 4 RBIA Observations to be informed separately for each
year.
(b) Concurrent Audit Report Date:
Observations Rectification/ Compliance Present Status

64
 Note: Observations of Concurrent Auditors, if applicable to be informed
(c) RBI/ Statutory Audit Report Date:
Observations Rectification/ Compliance Present Status

Note: Observations of RBI/ Statutory Auditors, if applicable to be informed.

13. STAFF LAPSES OBSERVED AT THE STAGE YES/ NO DEFICIENCY OBSERVED, IF

OF: ANY
i. APPRAISAL/ PRE-SANCTION
a. Pre inspection conducted
b. Credit report compiled
c. Due diligence carried out

PM
ii. SANCTION
a. Sanctioned as per delegated authority
b. All pre-disbursal condition applied

1
c. Margin obtained

:1
12
iii. DOCUMENTATION
a. Proper documents received
b. Mortgage/ CERSAI charges created
4

c. Documents enforceable
02

iv. MONITORING AND FOLLOWUP:

/2

a. Post sanction conducted

6

b. End use of fund verified

/0
11

v. IS THE ALLEGED ACT OF COMMISSION/

OMISSION OF LAPSES IS WITH REFERENCE
TO LAID DOWN SYSTEMS AND
4

PROCEDURES OF THE BANK

38

vi. WHETHER THE NEGLIGENCE

81

DISPLAYED BY THE OFFICIAL WAS

DELIBERATE ONE OR AN UNINTENTIONAL
ACT

14 REASONS FOR NPA

15 MITIGATING FACTOR

65
16 SPECIFIC OBSERVATIONS

17 FINAL VIEW (WHETHER STAFF

ACCOUNTABILITY ASCRIBED)
NAME OF THE OFFICERS ALONG WITH
STAFF NO. & DESIGNATION FOR THE
LAPSES IS TO BE FURNSIHED IN CASE
ACCOUNTABILITY IS ASCRIBED.

PM
1
:1
1. Confirmed that all officers/ employees listed in the (relevant) Annexure, against whom
12
lapses have been observed, have explained their version of the events/ transactions and
their statements has been obtained. It is also confirmed that all relevant original records
were shown to officials/ employees and they have certified accordingly in their
4

statement/ version.
02

2. Confirmed that all original documents listed in the relevant Annexures are held in the
double lock and the list of documents has been entered in the Branch Document Registers.
/2

A certificate obtained from the Branch Manager to this effect is also enclosed with the
Report.
6
/0

Date:
11

Place:
4

INVESTIGATING OFFICER (SIGNATURE)

38

NAME:
DESIGNATION:
81

PLACE OF POSTING:

Enclosures:

1. List of documents to report

2. List of Written/Recorded Statements as per format obtained during investigation
3. Report on the lacunae unearthed during investigation to Authority who ordered
investigation.
4. Letter addressed to the Branch-incharge for having kept the original documents under safe
custody.

66
 ANNEXURE-II

BRIEF REPORT FOR PRELIMINARY EXAMINATION BY COMMITTEE

Applicable for NPA with outstanding balance above Rs.10.00 lacs to Rs.1.00 Crore as on the date

(Report should cover a period of 4 years preceding the date of NPA) (To be placed by respective
section at RO/CO)

Branch DP Code

Regional Office Circle Office

(A) PROFILE OF THE ACCOUNT

1. Name of the Borrower/ Firm/ Company

PM
i. CIF/ Identification No.

ii. PAN/ TAN/ GSTIN No.

1
:1
2. Address of Borrower/ Unit/ Firm
12
4

3. Account Number
02
/2

4. Constitution (Sole/ Multiple/

Consortium/ Others)
6
/0

5. Name of Proprietor/ Partners/ Directors

(PAN & DIN)
11

6. Activity
4
38
81

7. Banking Arrangements, if Consortium Bank Limit % share o/s Status

Name of (Amt. in of A/c
Banks lakhs)
8. Present Status of Business/ Unit

9. Dealing with Bank since

10. Advance Since

67
11. Sanctioning Authority

12. Details of Credit Facilities Type of Limit Limit (Amt. o/s (Amt. in
in lakhs) lakhs)
FB (CC/ TL)
NFB (BG/LC)

13. Details of Review/ Renewals along with Type of Limit Limit (Amt. o/s (Amt. in
Date of Renewal and Reviewing Authority in lakhs) lakhs)
FB (CC/ TL)
NFB (BG/LC)

14. Latest External/ Internal Credit Rating, if (a) Internal Rating

applicable

PM
(b) External Rating

(i) Name of Rating Agency, Date and Validity

15. Date of NPA

1
:1
16. Whether the Account is Takeover and
takeover norms complied with?
12
17. Whether the case of Quick Mortality?
4

18. Whether Account classified as Fraud

02

19. Status of Willful Defaulter

(Yes/ No)
/2

20. Details of Securities available

6

(a) Primary
/0
11

(b) Collateral
4
38

21. Details of Guarantee available

81

(B) REASONS FOR ACCOUNT TURNING NPA

22. Major factors for account turning NPA
along with most likely date of event
responsible for NPA
a) External Factors, if yes, details
thereof

68
 b) Business Failure, if yes, details
thereof

c) Management related issues, details

thereof
d) Project viability, details thereof

e) Diversion of funds, please specify

f) Any other reason contributing for

account turning NPA

(C) OBSERVATIONS IN PREVIOUS 4 YEARS AUDIT REPORTS FROM THE DATE OF NPA
23. (a) RBIA Report Date: Date of Report Closure:

PM
Observations Rectification/ Compliance Present Status

1
:1
12
4
02
6 /2
/0
11

Note: In the above format, last 4 Internal Audit Report Observations to be informed
separately for each year.
4

24. (b) Concurrent Audit Report Date: Audit Report closed:

38

Observations Rectification/ Compliance Present Status

81

Note: Observations of Concurrent Auditors, if applicable to be informed

25. (c) RBI/ Statutory Audit Report Date: Audit Report closed:
Observations Rectification/ Compliance Present Status

69
 Note: Observations of RBI/ Statutory Auditors, if applicable to be informed.
26. (d) Stock Audit Report Date:
Observations Rectification/ Compliance Present Status

Note: Observations of Stock Auditors, if applicable to be informed.

27. (e) Legal Audit Report Date:
Observations Rectification/ Compliance Present Status

PM
1
:1
12
Note: Observations of Panel Advocate, if applicable to be informed.
(D) CHART OF COMPLIANCE OF TERMS AND CONDITIONS
28. At the stage of Yes/ No Deficiency observed, if any
4

i. Sanction/ Appraisal
02

(Adherence of laid down norms/

compliance to be commented upon)
/2

ii. Sanction including enhancement:

6

(Adherence of laid down norms/

/0

compliance to be commented upon)

11

iii. Documentation/ Security Creation:

(Adherence of laid down norms/
compliance to be commented upon)
4
38

iv. Compliance of sanction terms &

conditions:
81

v. Disbursement and end use of funds:

(Adherence of laid down norms/
compliance to be commented upon)

vi. Monitoring & Follow-up:

(Adherence of laid down norms/
compliance to be commented upon)

vii Monitor LIE/ TEV Reports, wherever

applicable, is obtained and observations
complied with?
70
viii. Any other observation

Date:

Place:
Signature of the respective Section Head
Name:
Staff No.
Designation:

PM
1
:1
12
4
02
6 /2
/0
11
4
38
81

71
 ANNEXURE-III
FORMAT FOR STAFF ACCOUNTABILITY REPORT

(Applicable for NPA with Outstanding balance above Rs.10 lacs and upto Rs.1.00 Crore as on
the date)

(Report should cover a period of 4 years preceding the date of NPA)

Circle Office Regional Office Branch

A. DETAILS OF THE NPA BORROWAL ACCOUNT:

S.No. Particulars Information
1. Account Number/ Customer ID:

PM
2. Name of the Borrower:

1
:1
3. Address of the borrower:
12
4
02

4. Name of the Proprietor/ Partner/

Director and their address:
6 /2

5. Advance since:
/0
11

6. Date of Last AOD, if any

4
38

7. Date of NPA:
81

8. Present Asset Classification:

9. Borrower’s/ Guarantors Means:

10. Constitution: Indiv/ Prop/ Part/ Pvt. Ltd./ Ltd. Co./ LLP/
Other ………. (Specify)
11. Activity of the borrower/ Unit:

72
12. Present Status of Business/ Unit:

13. Banking Arrangement Sole/ Consortium/ Multiple

14. Whether Fraud/ Suspected fraud Fraud / Suspected Fraud/ No fraud

15. Willful Defaulter Yes/ No

B. DETAILS OF CREDIT LIMIT/S SANCTIONED:

(Rs. in lakhs)
FUND BASED LIMITS
Account Sanctioning Nature of Limit O/s Present o/s Unapplied

PM
No./ Authority limit balance as Balance interest
Sanction the time of
Date/ Last NPA
Renewal

1
Date

:1
12
4
02
6 /2

Total FB
Limits
/0
11

NON FUND BASED LIMITS

4
38
81

Total NFB
Limits

C. DETAILS OF SECURITIES ALONG WITH VALUATION AND DATE OF VALUATION:

(Rs. in lakhs)
Nature of Security Value of Security at the time of Whether security is
Sanction/ valuation Present/ valuation enforceable at present
date date
Primary

Collateral
73
 Total

D. NAME OF THE GUARANTORS/ CO-OBLIGANTS AND THEIR NET WORTH:

(Rs. in lakhs)
Name of Guarantors/ Co-obligants Means at the time of
Initial Sanction At present

PM
E. BACKGROUND AND REASONS FOR THE ACCOUNT BECOMING NPA:

1. External Factors, if any (please elaborate):

1
2. Internal Factors, if any (please elaborate):
:1
12
4

F. MEASURES TAKEN FOR RECOVERY:

02

SL.NO.. ACTION TAKEN YES/ DETAIL PRESENT

NO STATUS
/2

1. DRT/ SUIT FILED

6

2. SARFAESI ACT
/0

INITIATED
11

3. OTHERS
4

G. IRREGULARITIES POINTED OUT IN THE INSPECTION/ AUDIT REPORT/S:

38

OBSERVATIONS IN PREVIOUS 4 YEARS AUDIT REPORTS FROM THE DATE OF NPA

81

1. (a) RBIA Report Date: Report Closed Date:

Observations Rectification/ Compliance Present Status

Note: In the above format, last 4 years RBIA Observations to be informed separately for
each year.
2. (b) Concurrent Audit Report Date: Audit Report closed:
Observations Rectification/ Compliance Present Status
74
 Note: Observations of Concurrent Auditors, if applicable to be informed
3. (c) RBI/ Statutory Audit Report Date: Audit Report closed:
Observations Rectification/ Compliance Present Status

Note: Observations of RBI/ Statutory Auditors, if applicable to be informed.

4. (d) Stock Audit Report Date:
Observations Rectification/ Compliance Present Status

PM
1
:1
Note: Observations of Stock Auditors, if applicable to be informed.
12
5. (e) Legal Audit Report Date:
Observations Rectification/ Compliance Present Status
4
02
6 /2

Note: Observations of Panel Advocate, if applicable to be informed.

/0

H. STAFF LAPSES OBSERVED BY THE BRANCH AT THE STAGE OF:

11

At the stage of Yes/ No Deficiency observed, if any

i. Pre-sanction/ Appraisal:
4

a. Pre inspection conducted

38

b. Credit report complied

c. Due diligence carried out
ii. Sanction:
81

a. Sanctioned as per delegated authority

b. All pre-disbursal condition applied
c. Margin obtained
iii. Documentation:
a. Proper documents received
b. Mortgage/ CERSAI Charges created
c. Documents enforceable
iv. Disbursement:
a. Pre-disbursal conditions complied with
v. Post-sanction/ Follow-up:
a. Post sanction conducted
b. End use of fund verified
75
 vi. Others (if any)

vii. Is the alleged act of commission/ omission of

lapses is with reference to laid down systems
and procedures of the Bank
viii. Whether the negligence displayed by the
official was deliberate one or an
unintentional act
ix. Name of the officer/s with Staff No. & The stage/s attributable for lapses
designation responsible for the lapses as
identified by the Branch/ Regional/ Circle
Office

I. OTHER DETAILS:

PM
1. Banking Arrangement (Consortium/ Multiple/ Sole):
2. Whether Takeover loan (if yes, name of the institution):
a. Takeover norms are fully complied with: YES / NO

1
b. If no, furnish the particulars

:1
3. Latest date of submission of Stock Statements (in case of Working Capital Limits)
12
4. Repayment structure including initial repayment holiday if any:
5. Details of Adhoc/ Excess allowed if any:
4
02

Account Number Limit Balance Excess Sanctioning Authority (for

excess)
6 /2
/0

6. Any other disturbing features in the account (Like cessation of activity etc.):
11

-
-
4
38

J. COMMENTS OF DEPUTED OFFICIAL:

-
81

1. Confirmed that all officers/ employees listed in the (relevant) Annexure, against whom lapses
have been observed, have explained their version of the events/ transactions and their
statements has been obtained. It is also confirmed that all relevant original records were
shown to officials/ employees and they have certified accordingly in their statement/ version.

76
 2. Confirmed that all original documents listed in the relevant Annexures are held in the double
lock of the branch and the list of documents has been entered in the Branch Document
Registers. A certificate obtained from the Branch Manager to this effect is also enclosed with
the Report.

Date:

Place:

INVESTIGATING OFFICER (SIGNATURE)

NAME:
STAFF NO:
DESIGNATION:

PM
PLACE OF POSTING:

Enclosures:

1
:1
1. List of documents to report
2. List of Written/Recorded Statements as per format obtained during investigation
12
3. Report on the lacunae unearthed during investigation to Authority who ordered investigation.
4. Letter addressed to the Branch-incharge for having kept the original documents under safe
custody.
4
02
6 /2
/0
11
4
38
81

77
 ANNEXURE-IV

DETAILED REPORT FOR PRELIMINARY EXAMINATION BY THE COMMITTEE

(Above Rs.1.00 Crore to Rs.50.00 Crore)

(Report should cover a period of 4 years preceding the date of NPA) (To be placed by
respective section at CO/HO)

Branch DP Code
Regional Office Circle Office

(A) PROFILE OF THE ACCOUNT

1. Name of the Borrower/ Firm/ Company
a. Customer ID

PM
b. PAN/ TAN/ CSTIN No.
2. Address of Borrower/ Unit/ Firm
3. Account Number
4. Constitution (Sole/ Multiple/ Consortium/ Others)

1
5. Name of Proprietor/ Partners/ Directors (PAN & DIN)

:1
6. Activity
7. Banking Arrangements, if Consortium Bank Limit % share o/s Status
12
Name of (Amt. in of A/c
Banks lakhs)
8. Present Status of Business/ Unit
4

9. Dealing with Bank since

02

10. Advance Since

11. Sanctioning Authority
/2

12. Details of Credit Facilities Type of Limit Limit (Amt. o/s (Amt. in
in lakhs) lakhs)
6

FB (CC/ TL)
/0

NFB (BG/LC)
13. Details of Review/ Renewals along with Type of Limit Limit (Amt. o/s (Amt. in
11

Date of Renewal and Reviewing Authority in lakhs) lakhs)

FB (CC/ TL)
NFB (BG/LC)
4

14. Latest External/ Internal Credit Rating, if (a) Internal Rating

38

applicable
(b) External Rating
81

(i) Name of Rating Agency, Date and Validity

15. Date of NPA

16. Whether the Account is Takeover and

takeover norms complied with?
17. Whether the case of Quick Mortality?

18. Details of securities available

(a) Primary

78
 (b) Collateral

19. Details of Guarantee available

20. Whether any Govt. Guarantee/ Subsidy

available?

21. Status of Fraud Examination

22. Status of Willful Defaulter

(B) REASONS FOR ACCOUNT TURNING NPA

23. Major factors for account turning NPA

PM
a. External factors, if yes, details thereof
b. Business failure, if yes, details

1
thereof

c. Management related issues, details

:1
12
thereof
d. Project viability, details thereof
4
02

e. Diversion of funds, please specify

/2

f. Internal Reasons
6
/0
11

(C) OBSERVATIONS IN PREVIOUS 4 YEARS AUDIT REPORTS FROM THE DATE OF NPA
24. (a) RBIA (Internal Audit) Date: Date of closure:
4

Observations Rectification/ Compliance Present Status

38
81

Note: In the above format, last 4 RBIA Report Observations to be informed separately for
each year.
25. (b) Concurrent Audit Report Date: Audit Report closed:
Observations Rectification/ Compliance Present Status

79
 Note: Observations of Concurrent Auditors, if applicable to be informed
26. (c) RBI/ Statutory Audit Report Date: Audit Report closed:
Observations Rectification/ Compliance Present Status

Note: Observations of RBI/ Statutory Auditors, if applicable to be informed.

27. (d) Stock Audit Report Date:
Observations Rectification/ Compliance Present Status

PM
Note: Observations of Stock Auditors, if applicable to be informed.

1
28. (e) Legal Audit Report Date:
Observations Rectification/ Compliance
:1 Present Status
12
4
02
/2

Note: Observations of Panel Advocate, if applicable to be informed.

6

(D) CHART OF COMPLIANCE OF TERMS AND CONDITIONS

/0

29. (a) Pre-sanction/ Appraisal:

1. Whether pre-sanction inspection conducted?
11

If Yes, date of inspection

2. Whether pre-sanction has been conducted by

4

Third-party Agency, if yes, name of the Agency

38

and Nature of work

3. Whether any deficiency pointed out in pre-
sanction, details thereof
81

4. Whether background (track report) of the

borrower(s) and guarantor(s) have been
verified?
5. Whether KYC details (PAN/ Aadhar/ Voter
ID/ Passport etc. of borrower(s)/
guarantor(s) obtained and verified from
Government sites?
6. Whether CIBIL/ CRILIC/ CIC reports/ ROC
search obtained and scrutinized, any adverse
observations.

80
7. Whether RBI defaulter’s list/ Central Fraud
Registry, ECGC caution list/ Stuck-off list of
Companies/ DIN verification from MCA sites
etc. has been verified? Any adverse
observations.
8. Whether CA certified financial statements of
the borrower company have been obtained
and verified from MCA portal?
9. Whether applicable Statutory Approvals/
clearances/ NOCs etc. has been obtained.

10. Whether CA certified assets and liability

statements of borrower’s and guarantor’s has
been obtained.
11. Whether the credit information report/s
obtained

PM
12. Whether the credit report/s has been
complied?
13. Whether inspection/ independent verification

1
of property/ies proposed to be mortgaged has

:1
been carried out? Proof of report and
observations.
12
14. Whether Title Investigation Report
(TIR/NEC) have been obtained as per Bank’s
extant guidelines? Wherever applicable from
4

two panel advocates.

02

 Date of report
 Name of Advocate/s
15. Whether the Valuation Report/s have been
/2

obtained as per Bank’s extant guidelines?

6

Wherever applicable from two panel valuers.

 Date of report
/0

 Name of Valuer/s
11

16. Whether Technical Officer (TO) has given

Project Appraisal/viability Report regarding
the project viability? Any adverse comment
4

observed. Please specify.

17. Whether TEV study has been done, if
38

applicable?
81

18. Whether the property identified and

demarcated as per the TIR/s and Valuation
Report/s. Comments on adverse remarks by
the Advocate/s and Valuer/s if any.
19. Whether any deficiencies observed in the
quality of appraisal? Provide specific
comments about adequacy of limits/
projections vis-à-vis actual, justification
thereof, seasonability factors, marketability of
the product and competition etc.
(b) SANCTION
81
 i. Date of Sanction/ Last reviews/ renewal

ii. Sanctioning Authority:

a) Name of Sanctioning Authority
b) Designation
iii. Whether the proposal was within the
delegation of Sanctioning Authority?

iv. Whether the proposal was in compliance of

Bank’s/ RBI guidelines?

v. Whether margin on securities were stipulated

as per extant guidelines? If not, mention
details of deviations and ratification of the
same from the Appropriate Authority.

PM
vi. Whether benchmark, financial parameters
were ensured and justified in the proposal and
Sanctioning Authority is satisfied with the
same?

1
vii. Whether sanction is reviewed by the next

:1
authority? Reviewing Authority observations
and compliance thereof.
12
(C) DOCUMENTATION

i. Whether Credit Audit was conducted? Any

4

adverse remarks and compliance thereof,

02

please specify.
ii. Whether the documents are vetted by the
Panel Advocate/ Law Officer? Any suggestion
/2

made and compliance thereof.

6

iii. Whether documents are in order and have

been obtained in prescribed format as per the
/0

extant guidelines (facility-wise)?

11

Have the documents been revived after

original sanction (in case of renewal/
enhancement)
4

iv. Whether all the documents mentioned in the

38

LSR/ NEC by the Advocate for creation of valid

and enforceable mortgage obtained prior to
81

creation of mortgage?

a) Status of creation of EMT

b) Whether charges filed with CERSAI
c) CERSAI Asset ID
d) Whether our charges are reflected
correctly?
e) Whether extension of mortgage has been
done, wherever applicable.
v. Whether charges are filed in time with ROC
and our charges reflected in ROC Report?

82
vi. Whether all stipulated securities obtained and
all the terms of sanction have been complied
with before disbursement of the credit limits?
vii. Whether the sanction terms and conditions
duly conveyed to borrower/s and
guarantor/s.
viii. Whether all the pre-disbursal conditions
complied with before disbursement?
ix. Whether borrower’s/ promoter’s
contribution/ margin as envisaged, obtained
within the prescribed time?
x. Whether stock & BDs statements verified
before 1st disbursement
xi. Whether the end use of funds ensured/
monitored on continuous/ regular basis.
xii. Whether inspections conducted as per

PM
prescribed periodicity?
xiii. Comments on action taken on adverse
findings during the inspection

1
(d) MONITORING & FOLLOWUP:

i. Whether stock statements received as per the

:1
12
prescribed periodicity and DP calculated as
per the available margin? If not, steps taken.
ii. Whether QOS/ PIPR/ MSOD statements
4

received as per the prescribed periodicity and

02

analyzed?
iii. Whether cash withdrawals permitted, if yes,
whether justified?
6 /2

iv. Whether the sales proceeds routed through

/0

the Bank account and whether sales figures

11

verified from VAT/ GST Returns?

v. Whether stock/ receivable audits conducted
as per the prescribed periodicity? Corrective
4

steps initiated against adverse comments of

Auditor, if any.
38

vi. Have all the associated risk covered

adequately through Insurance Policy and
81

Renewals thereof?
vii. Whether any irregularity observed in Forex
related transactions? Corrective steps taken.
viii. Whether operations/ disbursals in the NFB
limits (LC/BG etc.) were allowed as per
norms?

Any instances of devolvement/ invocation and

steps taken to recover the amount?
ix. Whether excess drawings were permitted? If
yes,
a) Whether it was under the delegation?
83
 b) How often and purpose?
c) Whether adjusted on time as stipulated?
x. Whether Consortium Meetings were held
periodically? Minutes received?
xi. Whether exchange of information (in case of
multiple banking account) done as per extant
guidelines?
Xii Whether timely review/renewal of limits and
documentation were taken up?
xiii. Have any Early Warning Signals (EWS)
noticed in the conduct of the account viz.
Bouncing of ECS, frequent cheque returns,
devolvement of LCs, invocation of BGs,
frequent overdrawings, slow moving stocks
etc. were noticed by the concerned official/s
and reported timely to the appropriate

PM
authority?
(e) ADDITIONAL INFORMATION, IN CASE OF QUICK MORTALITY OF ACCOUNTS:
i. Name and designation of first sanctioning
authority

1
ii. Whether the borrower’s antecedents and his/

:1
her experience/ expertise/ capability to run
the business financed by the Bank was
12
verified?
iii. Whether the technical/ economic viability of
the business activity was assessed?
4

iv. Whether status report obtained from the

02

borrower’s existing Bank

v. Date of pre-sanction inspection
vi. If the account is taken over from other Bank,
/2

whether status report from that Bank was

6

obtained prior to sanction of the limit.

vii. If the borrower is/ was enjoying credit
/0

facilities from other Bank whether prior NOC

11

was obtained.
viii. Whether valuation/ search report for
immovable property (if stipulated as security)
4

was obtained before disbursement

ix. What was the basis of assessment of quantum
38

of credit limit granted to the borrower?

x. In case of third party guarantor/ mortgagor
81

involved whether the proposal was discussed

with them.
xi. Did post sanction disbursal conform to
stipulated terms of conditions?
xii. Was monitoring of the account including
inspection after disbursement regular/
adequate
xiii. Was the borrower regular in submitting
stock/ book debts statement and other
returns as per stipulation?

(E) POSSIBILITIES OF RECOVERY/ UPGRADATION:

84
 i. Whether account can be upgraded/
restructured?

ii. Whether sufficient securities available to

recover bank’s dues and are marketable?

iii. Whether promoter/s & Guarantor/s are

having sufficient means?

iv. Whether any Government guarantee/

subsidy available in the account?

v. Whether securities are legally enforceable

vi. Action taken for recovery

PM
a) Details of DRT suit & status

b) Details of SARFAESI & status

1
:1
c) ECGC/ CGTMSE claim status, if applicable
12
d) Recovery made so far
4
02

e) Other action taken for recovery

6 /2

Date: Signature of Respective Section Head

/0

Place: Name:
11

Staff No
4

.
38
81

85
 ANNEXURE-V

INVESTIGATION REPORT FOR THE ACCOUNTS WITH OUTSTANDING LIABILITY UPTO Rs.
1.00 Crore

(Applicable for Investigation conducted by Inspection wing for Fraud/Suspected

fraud/Quick Mortality Accounts)

Circle Office Regional Office Branch

A. DETAILS OF THE BORROWAL ACCOUNT:

S.No. Particulars Information

PM
1. Account Number/ Customer
ID:

2. Name of the Borrower:

1
:1
12
3. Address of the borrower:
4
02

4. Name of the Proprietor/

/2

Partner/ Director and their

address:
6
/0

5. Date of Sanction:
11
4

6. Date of Last AOD, if any

38
81

7. Date of NPA (If slipped to

NPA):

8. Present Asset Classification:

9. Borrower’s/ Guarantors
Means:

10. Constitution: Individual/ Prop/ Part/ Pvt. Ltd./ Ltd.

Co./ LLP/ Other ………. (Specify)
86
 11. Activity of the borrower/
Unit:

12. Present Status of Business/

Unit:

13. Banking Arrangement Sole/ Consortium/ Multiple

14. Whether Declared as Fraud/Suspected Fraud/No fraud

Fraud/Suspected Fraud
15. Wilful Defaulter Yes/ No

16. Whether Declared as Quick Yes/ No

Mortality Account

B. DETAILS OF CREDIT LIMIT/S SANCTIONED:

PM
(Rs. in lakhs)
FUND BASED LIMITS
Account Sanctionin Nature of Limit O/s Present O/s Unapplied

1
No./ g Authority limit Balance as Balance interest

:1
Sanction the time of
Date/ Last NPA
12
Renewal
Date
4
02
6 /2
/0
11

Total FB
Limits
4
38

NON FUND BASED LIMITS

81

Total NFB
Limits

C. DETAILS OF SECURITIES ALONG WITH VALUATION AND DATE OF VALUATION:

(Rs. in lakhs)
Nature of Security Value of Security at the time of

87
 Sanction/ valuation Present/ valuation Whether security is
date date enforceable at present
Primary

Collateral

Total
D. NAME OF THE GUARANTORS/ CO-OBLIGANTS AND THEIR NET WORTH:

(Rs. in lakhs)
Name of Guarantors/ Co-obligants Means at the time of
Initial Sanction At present

PM
1
:1
E. BACKGROUND AND REASONS FOR THE ACCOUNT BECOMING NPA:
12
1. External Factors, if any (please elaborate):
4
02

2. Internal Factors:
/2

F. MEASURES TAKEN FOR RECOVERY:

6
/0

SL.NO.. ACTION TAKEN YES/ DETAIL PRESENT

NO STATUS
11

1. DRT/ SUIT FILED

2. SARFAESI ACT
4

INITIATED
38

3. OTHERS
81

G. PRE-SANCTION APPRAISAL AND SANCTION:

i. How the account was sourced? Who sourced it?

Details of enquiries done ensure quality & safety

ii. Whether Credit Requirements of the party

were assessed as per credit policy of the Bank?

iii. In case of take over finance, whether policy

guidelines of the Bank were followed and
88
satisfactory OPL obtained from the transferor
Bank / satisfactory Credit Information Report
obtained from the agency?

iv Whether KYC norms followed?

Sanctioning Authority’s Name, Staff No.

Designation
Enhancement / Renewal Details (All) (each one
separately):

i) Date:

PM
ii) Amount:

iii) Sanctioning Authority’s, Name, Designation,

Staff No. (in case of Committee Name the

1
Committee)

Whether sanction was made within the powers

:1
12
delegated?

Whether assets and liabilities of the

4

proprietor/individual partners/ individual

02

directors /guarantors had been obtained and their

credentials verified:
Whether credit report/appraisal report
/2

submitted is complete in all respects. Whether

6

latest financial statements submitted in case of

advances to firms and companies
/0

Whether valuation/legal opinion was obtained

11

from Bank's approved valuer/lawyer

Whether independent assessment of the
valuation of the property is made and recorded
4

Whether the liability is taken over from any other

Bank/FI? If so, whether take over norms have
38

been complied with? Furnish details.

Whether it was clean advance or secured advance;
81

if it was a clean advance, any guarantee obtained.

Whether margin on securities were stipulated as
per guidelines. If not, mention details of
deviation permitted by the competent
Authority
While sanctioning the advances whether the
benchmark financial parameters were
verified and sanctioning authority is satisfied
with.
Whether sanction is reviewed- Review
observations if any, whether complied with. Give

89
details of review observations pending for
compliance
H. DOCUMENTATION:
Whether prescribed documents were taken and
properly, stamped, executed, wherever required
registered? Documents are in force?

Whether any deficiencies observed in creation of

charges (ROC/ CERSAI etc.)? In case of yes point
out the details.
Whether the stipulated securities obtained and
all the terms of sanction have been complied with
before actual disbursements of the credit limits
and deviations if any have been authorised by the
sanctioning authority. If not so, what are the
terms of sanction which are not complied with

PM
and who is responsible for this lapse
Whether extension of mortgage, if stipulated,
was done for enhancement/other limits

1
I. MONITORING / POST SANCTION FOLLOW

:1
UP:
i. Whether end use of funds ensured?
12
ii. Whether periodical inspection of movable and
immovable assets, stocks, etc undertaken and
timely action taken to rectify the irregularities
4

found, if any?
02

iii. a) Whether claims (ECGC / CGS of CGTMSE

etc) preferred as per stipulation and settled? If
not, why? b) If claim is rejected, date of rejection
/2

and reasons:
6

iv. Whether Stock Statements, QIS etc., submitted

/0

by the borrower and reviewed by Branch/RO and

11

observations, if any
v. Whether any deficiency observed in the
conduct /monitoring of the account? Steps taken
to rectify the irregularity if any?
4
38

vi. Observations made in RBIA and steps taken by

the branch
81

vii. Any comments / deficiencies pointed out in

inspection / audit/ controlling office remains to
be rectified, which could have averted the
slippage and their present status?

viii. Whether documents are kept in force, and

mention the details of AOD obtained periodically?

ix. Observations made in Concurrent Audit/Legal

audit/ Stock Audit (Wherever applicable) and
90
steps taken by the branch for the observations
made
x. Whether the account was reported under
Special Watch Category? If so, the date and follow
up action taken by the Branch:
xi. Steps taken for upgradation / recovery: Details
of action taken under SARFAESI etc.,

xii. Whether any exceeding allowed over the

sanctioned limit were duly reported and it was
within delegated authority. If delegated authority
exceeded, whether confirmation was sought and
details of such confirmation. If not so, the details
with reasons. Who has allowed such excesses
with date of last TOD allowed?
xiii. Deficiencies/ lapses observed on the part of

PM
staff:

1
J.
:1
Additional information in case of Quick Mortality of accounts
12
Name and designation of first sanctioning
1
authority
4

How the borrower's antecedents and his

02

2 experience/ expertise/capability to run the

business financed by the Bank was verified?
How the technical/ economic viability of the
/2

3
business activity was assessed?
6

Whether status report obtained from the

4
borrower's existing Bank
/0

5 Date of pre-sanction inspection

11

If the account is taken over from other bank,

6 whether status report from that Bank was
obtained prior to sanction of the limit.
4

If the borrower is/ was enjoying credit

7 facilities from other bank whether prior NOC
38

was obtained.
Whether valuation/ search report for
81

8 immovable property (if stipulated as security)

was obtained before disbursement
What was the basis of assessment of quantum
9
of credit limit granted to the borrower?
In case of third party guarantor/mortgagor
10 involved whether the proposal was discussed
with them.
Did post-sanction disbursal conform to
11
stipulated terms of conditions?
Was monitoring of the account including
12 inspection after disbursement
regular/adequate
91
 Was the borrower regular in submitting
13 stock/book debts statement and other returns
as per stipulation?

K. STAFF LAPSES DETAILS:

Any other reason that is attributable to the staff for the unit becoming sick / account becoming bad.
Lapse/s if any attributable at various stages of Pre sanction appraisal, Sanction, Documentation,
Disbursement, Post sanction follow up, reporting irregularity etc., shall be furnished here below:
Sl. No. Name, Staff No. Tenure in the Branch Lapses Documents/ Evidence in
Designation Attributed support of such attributions.

PM
1
:1
L. COMMENTS OF INVESTIGATING OFFICIAL (If any):
12
1. Confirmed that all officers/ employees listed in the (relevant) Annexure, against whom
lapses have been observed, have explained their version of the events/ transactions and their
statements has been obtained. It is also confirmed that all relevant original records were
4

shown to officials/ employees and they have certified accordingly in their statement/ version.
02

2. Confirmed that all original documents listed in the relevant Annexures are held in the
/2

double lock of the branch and the list of documents has been entered in the Branch Document
Registers. A certificate obtained from the Branch Manager to this effect is also enclosed with
6

the Report.
/0
11

Date:
Place:
4
38

Signature of the investigating official

Name (Staff No.) ………………………….
Designation………………………………….
81

Mobile No……………………………………
Enclosures:
1. List of documents attached to report

2. List of Written/Recorded Statements as per format obtained during investigation

3. Report on the lacunae unearthed during investigation to Authority who ordered

investigation.

4. Letter addressed to the Branch-incharge for having kept the original documents under safe
custody.

92
 ANNEXURE VI

FORMAT FOR INVESTIGATION REPORT (For the accounts with outstanding Liability above Rs.
1.00 Crore)

STAFF ACCOUNTABILITY EXAMINATION / INVESTIGATION REPORT

Instructions:
1. This format consists of 4 Sections.
Sec(I) General Information
Sec(II) Staff Accountability Examination cases (sub-divided into 2 parts)
Part(i) For Retail segment loans
Part(ii) For loans other than Retail segment
Sec(III) Procurement
Sec(IV) Conclusion

PM
2. In Staff Accountability Examination cases, Section (I), (II) and (IV) only are required to be completed.
Relevant part should be used under Section (II) [i.e. Part (i) for Retail segment loan and Part (ii) other
than Retail segment].

1
:1
3. For cases related to “procurement”, Please use Section- I, III and IV only.
12
4. For all other investigation cases (Complaints, Frauds, Irregularities in Audit, Administrative lapses
etc.) only Section (I) and (IV) to be used. Additional sheets may be enclosed, if need be in such cases.
4

CARE-Section (IV): Conclusion is to be completed in all Investigation cases.

02

Section General Information

1. Source (Complaint/ Fraud/ Audit/NPA/Others provide
/2

details)
a) If Complaint, date of receipt
6

b) If Fraud, date of detection through Audit/

/0

Investigation, if any
c) If Audit irregularities, Audit type & Audit Report
11

date
d) If NPA, date of NPA
e) If others mention relevant date
4

If complaint, Name of complainant:

38

2. Name of Staff/ Branch/Outsourced Agency complained

against:
81

3. In case of Fraud/Irregularity/Others, date of occurrence

4. Brief description of event/transactions(In case of fraud,
brief modus operandi)
5. Specific terms of Reference i)
ii)
iii)
iv)
v)

Section II : Staff Accountability Examination In Advances Accounts All Segment(Report should

cover a period of 3 years preceding the date of NPA/ detection of fraud)
[A] Borrower’s Profile
93
 (i) Name of Borrower/Unit
(ii) CIF/Identification Number
1. (iii) Account Number(s)
(iv) PAN/TAN Number
(v) AADHAR Number
2. Constitution: Individual/ Proprietorship/
Partnership/ Company/Trusts/Others
Address:
(i) Residence(Individual)/Regd. Office(others)
3.
(ii) Manufacturing/Showroom
locations(wherever applicable)
4. In case of
Proprietorship/Partnership/Company etc.
names of Promoters/Partners/Directors
5. In case of Proprietorship/
Partnership/Company PAN of Promoters/

PM
Partners/Directors/ Guarantors & DIN of
Directors
6. Name and address of Co-borrower(s) &
Guarantor(s)

1
7. If Company, Group to which it belongs
8.
9.
Activity/ Segment/ Industry
Banking Arrangement
:1 Sole Banking/MBA/Consortium
12
(Amount In Lacs)
10. Details of facility(s) sanctioned to Proprietorship/Partnership/Company
Exposure to the Unit Exposure to the Group
4

Bank’s share Total(MBA/Cons) Bank’s share Total(MBA/Cons)

02

Cash Credit
Term Loan
/2

Others (Pls.
Specify)
6

Total FB
/0

BG
LC
11

CEL
Others (Pls.
Specify)
4

Total NFB
38

Total(FB+NF)
11. Major Banks along with their
81

shares
12. Association with Bank Since
13. (i) Unit’s CRA Rating and Date
(ii) Unit’s CUE Rating and Date
14. (i) External Credit Rating, If applicable
(ii) Name of Rating Agency, Date and Validity
15. Date of Incorporation
(i) Loan Sanctioned (In Rs.)
16.
(ii) Date of Original Sanction
17. Date of Last Sanction/Renewal/Review
(If applicable)

94
 18. Whether loan processed through LOS/LLMS or
any Automated System?
[B] Status Of Accounts
Position Of Account(s) as on ……………………………….(Staff Accountability Examination date)
Facility Limit DP Outstanding Irregularity

Standard/Sub
IRAC Status as on the Date of Staff Accountability
Std/Doubtful/Loss/Written-Off/AUCA
(i) Date of Initial reporting as SMA and action taken
(ii) If NPA, Date of NPA and action taken subsequently
(iii) If written off, mention the Date of write off
(iv) If account is in AUCA, Date of transfer
(v) Whether it is a case of quick mortality? Yes/No
[C] Details Of Security

PM
Date of
Value and basis of
Description valuation/Opinion
valuation
Report
Primary Security

1
Collateral Security
Personal Guarantee
Third party Guarantee :1
12
For SBI For Others
Collateral Coverage (%)
Whether security has been
4

correctly created in CBS/Finacle?

02

Whether any subsidy is receivable?

If Yes, whether subsidy received/claimed?
/2

[D] Major irregularities reported in Internal Audit/Credit Audit/Other Audits

6

Observations by the Replies & Compliance

Report
/0

Auditor by the Branch

1. Internal Audit Report Dated
11

2. Credit Audit Report Dated

Other Audit Reports(Please furnish names
3.
and dates)
4

Qualification if any in Company Auditor’s

4.
38

report as on 31st March

5. Any other relevant information
81

Section (II)-Part (i): Retail Segment Loans

(Please tick appropriated columns)
Pre Sanction, Sanction & Disbursement Stage Yes No NA
Whether Pre-sanction Inspection conducted?
(i) If Yes, Date of Inspection
1. (ii) If Pre-sanction has been conducted by the
outsourced agency (ies), name of the agency
(ies) and nature of work?
Whether any deficiency pointed out in Pre-
2. sanction?
Details

95
3. Background of the Borrower, if any
4. Whether Background of the borrower(s) and
Guarantor(s) have been verified?
5. Whether KYC Details (Pan/Aadhar No./Voter
ID/Passport etc.) of borrower(s)/Co-
borrower(s)/Guarantor(s) obtained and
verified from Government sites?
(i) Whether CIBIL data in respect of
borrower/Co-borrower(s)/Guarantor(s) duly
scrutinized?
6. (ii) Any adverse remarks observed in CIBIL
Reports?
If Yes, whether approval obtained from
appropriate authority in eligible cases?
7. Have existing repayment commitments of the
Borrower(s) been verified with CIRs obtained

PM
from CICs?
Has valuation of other collaterals offered, if
8. any, say NSCs/Shares/Bonds/LIC Policies etc.
been verified?

1
Yes No NA

:1
(i)Whether Pre-sanction
inspection/independent verification has been
12
9. conducted for the property proposed to be
mortgaged?
(ii)Date of report and observation, if any
4

(i) Whether Title Investigation Report

02

(TIR)/NEC and valuation Report have been

obtained as per Bank’s extant instruction for
all the mortgage.
/2

10.
(ii)Please mention the name of the
6

Advocate(s) and date of TIR/NEC

(iii) Please mention the name of Valuer(s) and
/0

date of valuation report

11

Whether the property identified and

Demarcated as per the TIR/NEC and Valuation
11. Report?
4

Comments on adverse remarks by the

Advocate(s) or the Valuer(s), if any?
38

(i) Whether Notarized Statements of Assets

and Liabilities of borrower(s)/Guarantor(s)
81

12. obtained? Dates of compilation of Opinion

Reports/ subsequent updations If any
(ii)Details of unencumbered properties, if any
(i) Has the advance been taken over?
(ii) If yes, details of the Bank from which the
account has been taken over and the loan
13. amount there at?
(iii) Whether the statement of account, copy of
Arrangement letter & list of security
documents deposited been obtained from
other Bank?

96
 If yes, whether any observations?
(iv) Whether all take over norms complied
with? If not, details of non-compliances?
(v) Deviations sought for, if any, for takeover
and approved by the appropriate authority?
(i) Whether the details of the accounts
maintained with other banks mentioned in the
loan proposal?
14. Yes No NA
(ii) If yes, the status of compliance of the
observations made by the Sanctioning
Authority, If any.
15. Whether the other loan history, if any, of
borrower(s) & guarantor(s) mentioned?
16. Whether the loan has been sanctioned within

PM
the discretionary powers?
17. Whether Sanction/Approval/Confirmation
obtained from appropriate authority?
18. Risk score (as per Matrix), If applicable?

1
(i) Any deviations observed in Risk Score
19. Matrix?
(ii) Approval for deviations, if any on record? :1
12
(i) Loan sanctioned under any specific
scheme/product of the bank?
4

20. (ii) Whether the terms & conditions specified

02

for the scheme/product complied with?

(iii) In case of non-compliances, Details?
/2

21. Whether the stipulated EMI/NMI ratio

maintained?
6

22. Whether all EMI liabilities arising from all

/0

loans disclosed in CIC report taken into

consideration while computing EMI/NMI
11

ratio? Or any other automated system.

(i) Whether the Sanction reported to the next
higher authority for control? (Online in LOS or
4

any other automated system, if applicable).

38

23. (ii) Whether the Control Report taken or

record?
(iii) Comments on the status of compliance of
81

observations made by the Controller, if any?

24. Whether the Terms & Conditions of sanction
conveyed to the borrower(s) & guarantor(s)?
25. Whether the Terms & Conditions of sanction
accepted by the borrower(s) & guarantor(s)?
Yes No NA
26. Whether the appropriate documents with all
covenants incorporated, complete in all
respects obtained? Are the documents valid
and enforceable?

97
27. In case the documents are drafted by an
attorney, whether a certificate has been
obtained from him regarding enforceability of
the documents? If any
If yes, mention the date of the Certificate
28. Whether all the documents mentioned in the
TIR/NEC by advocate for creation of valid and
enforceable EM obtained before creation of
Mortgage?
Status of creation of EM and comments on its
enforceability.
(i) Whether the charges filed with CERSAI?
29.
(ii) If Yes, mention CERSAI Asset ID.
(iii) Are our charges reflected correctly?
30. Has proper charge been created for the

PM
collateral securities?
31. Whether required PDCs obtained, if
applicable.
32. Have the documents been revived

1
subsequently to the original execution?
(i)Whether the static details such as
Borrowers Profile, Segment, Activity, Product :1
12
Limit, Interest rate, Disbursement, Repayment
33. schedule etc. correctly fed in the CBS/ Finacle?
(ii) In case of any deficiency in feeding of
4

details, please mention the name of official

02

responsible & impact on probable loss?

34. Whether all the Pre-disbursal conditions
/2

complied with before disbursal of the loan?

35. Whether the Borrower’s/Promoter’s
6

contribution/ margin as envisaged, received

/0

within the prescribed time?

11

Yes No NA
36. Whether ECS/SI/NACH set up immediately
4

after disbursal?
38

(i) Whether the end use of funds verified/

37. monitored on a continuous basis?
81

(ii) If not, reasons thereof?

POST SANCTION STAGE:
(i) Whether inspections conducted as per
prescribed periodicity? If No, reasons thereof?
1. (ii) Comment on the action taken on the
adverse remarks, if any, recorded by the
officials on the last 2 inspection reports.
(i) Comment on status of compliance with
stipulation regarding Insurance.
2.
(ii) Have all the Associated risks covered
adequately?

98
 (i) Has the valuation of securities (Primary/
Collateral) done by an Approved Valuer
subsequent to disbursement? If Yes, please
3.
mention dates.
(ii) Was there any downward slide in the value
of the property? If yes, the action taken?
(i) Have any early warning signals been
noticed in the conduct of account viz. Failed
SI/ECS Return/Frequent return of
cheques/observations made by the Auditors
in the inspection reports.
4.
(ii) Whether SMA reports submitted to the
Appropriate Authority as per the prescribed
periodicity along with Action Plan?
(iii) Comment on observations made by the
Authority and the compliance thereof?

PM
(i) Whether any adverse features observed in
the conduct of account?
(ii) Whether the same reported to the
5. Appropriate Authority?

1
:1
12
Yes No NA
6. Time lag between the Date of Sanction and
Date of NPA
4

7. Specific reasons for account turning NPA

02

8. Has any action plan (including re-phasement)

been examined or proposed by branch to tide
/2

over the stress in the Account?

9. Whether the account identified as fraud?
6
/0

10. Details of Action Taken for recovery of loan

11. In case PDCs were held at Branch, whether
11

these were presented on time?

12. Whether the notice of dishonor u/s 138 of NI
Act served promptly upon drawee in case of
4

default in payment of PDCs/ECS?

38

13. Whether subsequent action under NI Act e.g.

filing of summary suit etc. initiated timely for
81

unpaid PDCs/ECS/NACH?
14. Other relevant information, if any
15. Whether any other lapses have been observed
in processing/handling/maintenance and
follow-up of account?
16. Whether any lapses found in the obtention of
Primary Security/ Collateral
Security/Guarantee vis-à-vis terms of
sanction?

99
Retail Segment Loans
[1] Car Loan Yes No NA
(i) Whether dealer was a genuine one?
Whether payment to dealer made by
(ii) RTGS/NEFT/CBS with appropriate
covering letter?
(iii) Whether car was actually delivered?
If yes, whether the same make and model
which was financed by bank?
(iv) Whether the necessary papers related to
vehicle-invoice, Insurance, RC book etc.
obtained
(v) Whether Bank’s name noted in insurance
policy/RC Book?

PM
(vi) Whether registration details verified with
vahan.nic.in
(vii) Whether Inspection of Vehicle after
account first slipped took place?

1
(viii) Whether ECS/NACH mandate, if any,

:1
forwarded to respective
RACPCs/RASMECCs within a day or two of
12
disbursement of auto loan for activation?
(ix) Whether document migrated to
RACPCs/RASMECC within 2 months (for
4

BPR centres)?
02

(x) Was an attempt to repossess vehicle

(seizure of vehicle) done after 2
installments were unpaid?
/2

(xi) Whether the borrower resisted

6

repossession? Whether notice u/s 13(2) of

SARFAESI was served subsequently, after
/0

the account turned NPA?

11

(xii) If notice u/s 13(2) of SARFAESI was served

whether action u/s 13(4) of SARFAESI
taken timely?
4

[2] Personal Loan Yes No NA

38

(i) Whether genuineness of ITRs verified?

(ii) Whether genuineness of Salary Slip/Form
81

16 verified?
(iii) Whether check off/modified check-off
obtained and whether signatures of DDO/
Authorized signatories verified?
(iv) Whether intimation of sanction of loan sent
to the DDO (Xpress credit)?
(v) Whether Salary continued to be credited in
account after loan sanction. If not, whether
the matter taken up immediately with the
DDO?
(vi) In case of Corporate employer, whether the
Corporate met the eligibility criteria laid
100
 down by the bank and requisite approvals
obtained?
[3] Education Loan Yes No NA
(i) Whether payments made directly to the
educational Institute?
(ii) Whether periodical progress reports/
examination mark sheets obtained?
(iii) Whether moratorium period correctly fed
in CBS?
Whether any subsidy amount receivable?
(iv) If yes, whether subsidy claimed submitted
in time?
[4] Home Loan/ Real Estate Yes No NA
(i) Whether the property is identified and
demarcated as per the TIS/NEC and

PM
valuation report? Whether any conditions
stipulated in TIR/NEC? If yes, whether
complied with?
(ii) Whether Selfie at site taken by inspecting

1
official and kept on record?
(iii) In case of take-over finance whether all the
take-over norms complied with? :1
12
(iv) Whether stipulated LTV (loan to value)
ratio maintained?
(v) Whether disbursement of loan made in
4

accordance with the progress of work and

02

after post sanction inspection?

(vi) Whether disbursement made by means of
/2

account payee Banker’s Cheque/DD or

RTGS and forwarded directly to builder/
6

seller?
/0

(vii) Whether notice u/s 13(2) of SARFAESI

served and action u/s 13(4) initiated?
11

[5] Gold Loan Yes No NA

4

(i) Whether Gold loan was sanctioned against

38

gold ornaments or specially mintod Gold

coin sold by the Bank?
(ii) Whether borrower has a KYC compliant
81

account with the bank?

(iii) Whether Borrower’s declaration of
bonafide ownership of the ornaments
obtained?
(iv) Whether purity of gold ornaments was
properly ascertained by Bank official?
If yes, by whom and the purity testing
method adopted?
(v) Whether Certificate of purity and mass of
gold ornaments obtained from authorized
jeweller?

101
 (vi) Whether correct market value and advance
value used?
(vii) Whether LTV maintained for the loan?
(viii) Whether gold ornaments were kept in Joint
custody?
(ix) Whether letters/ notices sent promptly
after installment and/or Interest remain
unpaid as per extant instructions?
(x) Whether any auction conducted for the
loan?
If yes, Total time taken in conclusion of
auction from irregularity date.
Please also comment on outcome of
auction.

Section (II)-Part (ii): other than Retail segment loans

PM
Pre-Sanction, Sanction & Disbursement stage Yes No NA
Whether Pre-sanction Inspection conducted of
1. factory site/Business location/Registered office?

1
If yes, date of inspection?
2. Whether any deficiency pointed out in Pre-Sanction?
:1
12
3. Background of the Borrower/Unit & associates, If
any(details may be given as annexure)
4. Whether Background/Track-record of the
4

Unit/Borrower(s)/Guarantor(s) has been verified?

02

(i) Have credit information reports on

Borrower(s)/Associate(s) been called for from their
existing bankers.
/2

5.
(ii) If yes, whether verified?
6

(iii) Any adverse observation?

/0

(i) Whether KYC details(PAN/TAN/ Aadhar No./Voter

ID/Passport etc.) of borrower(s)/co-
11

borrower(s)/guarantor(s) verified from Government

sites?(To be specified & verification source to be
mentioned)
4
38

(ii)Whether list of defaulters/Central Fraud

Registry/ECGC caution list/Struck off list of
companies/Directors of MCA/SEBI etc. verified? To be
81

6. specified
If not, give details(details may be given as
annexure)
(iii) Whether Memorandum & Articles of Association
have been verified to ensure against clauses
prejudicial to Bank’s Interests ascertain whether
limitations have been placed on the company’s
borrowing powers, scope of activity etc.
(iv)Whether statutory
approvals/clearances/permits/NOCs, Collaboration

102
 agreements are obtained from Govt
Departments/agencies?
If No, please mention details:
(i) Whether CIBIL/CIC/CRILIC data in respect of
borrower/Guarantor duly scrutinized?
(ii) Any adverse remarks in CIBIL/CIC/CRILIC
7.
Reports?
If yes, whether approval obtained from appropriate
authority in eligible cases?
8. Have existing repayment commitments of the
Borrowers been verified with CIRs obtained from
CICs?
9. Whether Financial Statements submitted by borrower
have been verified from MCA portal?
10. Has valuation of other collaterals offered, if any say
Plant & Machinery/Shares/Bonds/LIC Policies etc.

PM
been verified?
(i) Whether Pre-sanction inspection/independent
verification has been conducted for the property
11. proposed to be mortgaged?

1
(ii) Date of report and observations, If any?

(i)Whether Title investigation report(TIR/NEC and :1

12
valuation report have been obtained as per Bank’s
extant instructions for all the mortgaged)
(ii) Please mention the name of the Advocate and date
4

12. of TIR/NEC.
02

(iii) Please mention the name of Valuer and date of

valuation report.
/2

(iv)Whether the Bank official had concurred with the

valuation?
6

If yes, name of official and date

/0

13. Whether the property identified and demarcated as

per the TIR and valuation report? Comments on
11

adverse remarks by the Advocate(s) or the Valuer(s),

if any?
(i) Whether Notarized statements of Assets &
4

Liabilities of Borrower(s)/Guarantor(s) obtained?

38

14. Date of compilation of opinion Reports/subsequent

updates.
81

(ii) Details of unencumbered properties, if any.

15. Comments on interlocking of funds/investments in
group concerned/cross movement of funds, if
applicable.
16. (i) Has the advance been Taken Over?
(ii) If yes, details of the bank from which the account
has been taken over and the credit facilities enjoyed
thereat?
(iii) Has (ve) credit information report(s) been
obtained from other banks? Verified or otherwise.

103
 If obtained, whether any adverse remarks mentioned
in the reports?
(iv) Whether all take-over norms complied with?
If not, details of non-compliances.
(v) Deviations sought for if any for takeover and
approved by the appropriate authority.
(i) Whether the details of the accounts maintained
with other Banks mentioned in the loan proposal?
17.
(ii) If yes, the status of compliance of the observations
made by the Sanctioning authority, If any.
18. Whether the other loan history, if any, of borrower(s)
& guarantor(s) mentioned?
19. Whether any deficiency observed in quality of
appraisal?
(Specific comments to be furnished about adequacy of

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limits, projections vis-à-vis actual, justification
therefore, seasonality factor, marketability of the
product and competition etc.(Annexure to be given) )
20. Whether the loan has been sanctioned with the

1
discretionary powers?

:1
21. Whether Sanction/Approval/Confirmation obtained
from appropriate authority?
12
22. Risk score (as per matrix), if applicable?
(i) Any deviations observed?
23.
4

(ii) Approval for deviations, if any, on record?

02

(i)Loan sanctioned under any specific

scheme/product of the Bank?
/2

Scheme details
24.
(ii) Whether the Terms & Conditions specified for the
6

scheme/ product complied with?

/0

(iii) In case of non-compliances, Details?

11

25. Whether the stipulated DSCR maintained?

26. Whether all liabilities arising from all loans disclosed
in CIC report taken into consideration while
4

computing DSCR?
38

(i) Whether the sanction reported to the next higher

authority for control?
81

(ii) If yes, Time taken to submit the report to

27. controlling office.
(iii) Whether the Control Report taken on record?
(iv) Comments on the status of compliance of
observations made by the Controller.
28. Whether the Terms & Conditions of Sanction
conveyed to the borrower(s) & guarantor(s)?
29. Whether the Terms & Conditions of Sanction accepted
by the borrower(s) & guarantor(s)?

104
30. Whether the appropriate documents with all
covenants incorporated, complete in all respects
obtained? Are the documents valid & enforceable?
31. In case the documents are drafted by an attorney
whether a certificate has been obtained from him
regarding enforceability of the documents?
If yes, then Date of Certificate.
32. Whether all the documents mentioned in the TIR/NEC
by advocate for creation of valid and enforceable EM
obtained before creation of Mortgage?
Status of creation of EM and comments on its
enforceability.
(i)Whether the charges filed with CERSAI?
33.
(ii) If yes, mention CERSAI Asset ID
(iii) Are our charges reflected correctly?

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34. Any search made with ROC for verification of the
existing charges? If yes, is the certificate of verification
on record?
35. Have the charges filed in time with ROC after

1
disbursement? If yes, are our charge reflected

36.
correctly?
Has proper charge been created for the collateral :1
12
securities?
37. Whether required PDCs obtained if applicable.
4

38. Have the documents been revived subsequent to the

original execution?
02

(i) Whether the static details such as Borrowers

Profile, Segment, Activity, Product Limit, Interchange
/2

ability, Rating, Pricing, Disbursement and Repayment

39. Schedule etc. correctly fed in CBS/Finacle?
6

(ii) In case of any deficiency in feeding of details,

/0

please mention the name of official responsible &

impact on probable loss?
11

40. Whether all the pre-disbursal conditions complied

with before disbursal of the loan?
41. Whether the Borrower’s/ Promoter’s contribution/
4

Margin as envisaged received within the prescribed

38

time?
42. Whether ECS/SI/NACH set up immediately after loan
81

disbursal?
43. Whether stock statement verified before 1st
disbursement?
44. Whether any cash withdrawals permitted? If so, what
are the reasons/ circumstances?
Whether approval for the same on record?
(i) Whether the end use of funds verified/ monitored
45. on a continuous basis?
(ii) If not reasons thereof?
46. Whether the renewal/review of loan(s) undertaken
annually?
If not reasons thereof?
105
 Post sanction stage
(i) Whether inspections conducted as per prescribed
periodicity?
If no reasons thereof?
1.
(ii) Comments on the action taken on the adverse
remarks if any, recorded by the officials on the last 2
inspection reports.
(i) Whether stock statements received as per the
prescribed periodicity?
(ii) If not, whether any steps taken?
2. (iii) Whether sales proceeds routed through bank
account?
(iv) Whether sales figures verified from VAT
returns/Excise returns/GST portal?
3. Whether any comments recorded against slow/ non-

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moving stocks and receivables beyond the cover
period in Stock Statements?
4. Was the Drawing Power computed correctly?

1
(i) Were financial follow up reports (wherever

5.
applicable) received at prescribed periodicity and
analyzed? :1
12
(ii) Whether any corrective action initiated for
deficiencies observed, if any?
6. Whether any Exchange of information (in case of
4

Multiple Banking Accounts) done as per extant

02

instructions?
Whether Consortium meetings are held periodically.
/2

Details of attendance in last three consortium

meetings on behalf of Bank.
6A
6
/0

Date of meeting:
Name/Designation
11

7. (i) Has stock & receivables audit (if applicable)

conducted as per the prescribed periodicity?
(ii) Comment on the corrective action initiated against
4

adverse comments if any, made by the stock and

38

receivables auditor.
8. (i)Comment on status of compliance with stipulation
regarding insurance.
81

(ii)Have all the associated risk covered adequately?

(i)Has the valuation of securities (primary/collateral)
done subsequent to disbursement? If yes, please
mention dates.
9. (ii) Was there any downward slide in the value of the
security?
(iii) If yes, whether any steps taken?
10. Whether any irregularities observed in FOREX related
transactions?
10A Whether the SWIFT messages for all the FOREX
transactions were sent on the same date?
106
 Whether the SWIFT messages for all the FOREX
transactions was generated and uploaded from the
10B transactions system i.e. Mercury FX/Exim Bills/IRC?
If not, details thereof.
Whether the financial/Accounting transaction was
10C completed before sending the SWIFT messages?
If not, details thereof.
10D Whether the daily report/Log of all the SWIFT
messages sent and received by the branch was
generated and scrutinize by the identified official?
10E Whether printing of duplicates SWIFT messages was
duly authorized by competent authority?
10F Whether all the SWIFT messages with amount beyond
threshold limit was authorized by user other than
makers, verifiers and authorizer?

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10G Whether the details of “high value payments
confirmations” were uploaded in BCQ (Business
Communication Quarterly) portal for the high value
SWIFT messages?

1
10H Whether currency-wise and correspondent wise

:1
limits were considered before sending the SWIFT
messages?
12
11. Whether any LCs opened favoring Associated/ Group
Concerns?
(i) Whether any instances of devolvement of LCs and
4

invocation of BGs observed?

02

Mention number of instances and amount involved

and reasons thereof?
(ii)Whether all such instances reported to
/2

12. appropriate authority?

(iii) Whether cash budget obtained before opening of
6

LCs?
/0

(iv) Whether the extant instructions on issuance of

further LCs/BGs to the borrower after
11

devolvement/invocation followed?
(i)Whether excess drawings permitted in any of the
facilities granted?
4

13. (ii) If yes , how often and for what reasons?

38

(iii)Have these been adjusted on time as stipulated?

81

(i) Have the irregularity(s) thus permitted been

reported to the Appropriate Authority and got
14. confirmed?
(ii) Observations of the authority and the compliance
thereof.
(i) Have any early warning signals noticed in the
conduct of account viz. Failed SI/ECS Return/
Frequent return of cheques/Devolvement of LCs/
15.
Invocation of BGs/ Frequent overdrawing/slow
moving stocks/Activity levels / Observation made by
the Auditors in the Inspection Reports.

107
 (ii)Whether SMA reports submitted to the appropriate
authority as per the prescribed periodicity along with
action plan?
(iii) Comment on the observations made by the
authority and the compliance thereof.
(i) Whether any adverse features observed in the
conduct of the account?
16.
(ii) Whether the same reported to the Appropriate
Authority?
17. Time lag between Date of Sanction and Date of NPA.
18. Comments on specific reasons for account Turning
NPA(Details be given on annexure)
19. Whether any action plan (including restructuring)
examined or proposed to tide over the stress?
20. Whether the account identified as fraud?

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21. Details of action taken for recovery of loan.
22. In case PDCs were obtained, whether these were
presented on time?
23. Whether the notice of dishonor u/s 138 of NI Act

1
served promptly upon drawee in case of default in

24.
payment of PDC/ECS/NACH?
Whether subsequent action under NI Act e.g. filing of:1
12
summary suit etc. initiated timely for unpaid
PDCs/ECS/NACH?
25. Other relevant information, if any.
4
02

26. Whether any other lapses have been observed in

processing/ handling/ maintenance and follow up of
accounts?
/2

If yes, details.
27. Whether any lapses found in the obtention of Primary
6

Security/Collateral Security/ Guarantee vis-à-vis

/0

terms of sanction?
If yes details?
11
4
38
81

108
[E] Details Of Officials Associated With The Account
Sanction/ Renewals during the three years preceding the date of NPA or detection of fraud starting
from recent one.
[1] Pre-sanction [2] Appraisal, Recommendation, Assessment, [3] Post-sanction
Formalities Additional Assessment, Sanction & Control formalities
Formalities
Name Role Presen Appraise Assess Addition Sanction Controll Name Role Prese
Sr.
(s) of and t d& ed by al ed by & ed by (s) of and nt
N
the Peri Desig- Recomm Assessm sanction and the Peri Desig-
o.
officia od nation en-ded ent by date Control officia od nation
l & by Date l &
Posting Postin
g
(i) Sanction/Last Review/Renewal: Dated

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(ii Second Last Review/Renewal: Dated

1
)

:1
12
(ii Third Last Review/Renewal: Dated
4

)
02
6 /2
/0

Names of individual officials including those in CPCs (Central Processing Centre) to be mentioned
11

(*) If applicable.
@Names of individual officials/committee to be mentioned.
Note: if Lapses have been observed during the above mentioned formalities, the details to be
4

provided in Conclusion part of the format.

38

Section III : Procurement Yes No NA

81

Whether financial and technical sanction of

1.
competent authority available?
2. Whether wide and adequate publicity ensured, if
applicable?
Whether advertisement posted on website & tender
documents were available for downloading in eligible
cases?
3. Whether pre-qualification criteria properly
defined/notified?
4. Whether short listed firms/ consultants were fulfilling
the eligibility criteria?

109
 Whether any deviation observed from notified criteria
during evaluation?
5. Whether tenders/bids opened in the presence of
bidders?
6. Whether any conditions having financial implications
altered after opening of the price bids?
7. Whether agreement complete with all relevant papers
such as pre-bid conference minutes etc.?
8. Whether corrections/omissions/additions etc. in
price bid properly numbered and attested &
accounted page-wise?
Whether tender summary note/Tender opening
register is carefully maintained?

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In case of consultancy contracts:
(i) Whether upper ceiling limit is fixed for consultancy
9.
fee?
(ii) Whether separate rates for repetitive works are

1
fixed?

:1
10. Whether price escalation paid only as per contract?
If so justification given thereof?
12
4
02

11. Whether Insurance Policies, Labour License,

Performance Guarantees obtained as per contract?
12. Whether technical personnel deployed/support
/2

provided as per contract?

6

13. Whether due action Initiated for levy of liquidated

damages in case of delay/default.
/0

14. Whether Retention Money/ Security Deposit held as

11

per terms of the contract?

15. Whether applicable TDS/Other Taxes recovered
while making the payments?
4
38

Note: Statements of the officials/employees against each of the lapses observed to be enclosed as
81

Annexure

110
 Section IV : Conclusion
[A] Particulars of Officer/Employee against whom lapses observed prima facie in Tabular form
Sr. Name(s) of PF DO Presen Scale & Lapses/I Explanatio Particulars Lapses/A IO’
No. the Numb B t scale Role at rregulari n/ Reply of llegation s
official/ er and the ties of the Documents s prima Re
Employee Posting materi observed official/ /evidences facie ma
al time Employee and substanti rk
relevance ated
thereof
(i) (ii) (iii (iv) (v) (vi) (vii) (viii) (ix) (x)
)

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CARE: Each role has its specific duties & lapses be specifically examined vis-à-vis the assigned role at the
material time.

Role of Controlling/Inspecting Officials

1
Whether the role of Controlling authorities

:1
needs to be examined In the matter? Any
observations?
12
Whether the role of Inspecting Officials needs to
be examined in the matter? Any observations?
4

1. Total Monetary loss expected arrived at

02

(Loss attributed to each individual

official/employee to be indicated)
/2

2. Any peculiar/extenuating
practices/circumstances/prevailing at the
6

branch/office
/0
11

[B] List of Witnesses

Sr. No. Name/Designation/Address of witness Relevance of witnesses/Nature of the
deposition (in brief)
4
38
81

Final findings/Observations of the Investigation Officer

111
 Suggestions for systematic improvements, If any for protection of recurrence of similar
events

Certificates:
1. Confirmed that all officers/employees listed in the (relevant) Annexure, against whom lapses have
been observed have explained their version of the events/transactions and their statements has been
obtained. It is also confirmed that all relevant original records were shown to officials/employees and
they have certified accordingly in their statement/version.
2. Confirmed that all original documents listed in the relevant Annexures are held in the personal
custody of the branch manager/s and the list of documents has been entered in the Branch Document
Registers. A certificate obtained from the Branch Manager to this effect is also enclosed along with the
report.

PM
Date:

Place:

1
Investigating Officer

:1
NOTE
The report should be confined only to the terms of reference of allegations contained in the complaint.
12
Other illegalities/malpractices observed in the course of investigation not having a direct bearing on
the subject matter of terms of reference may be brought to the notice of the controller through a
separate Note.
4
02
6 /2
/0
11
4
38
81

112
 BIO DATA (As on ……………………………………….)
(In respect of each official/ employee interrogated by the Investigating Officer)
1. Name in Full(in block letters)

2. Joined the Bank as & date of Joining

(at the time of appointment in the Bank )

3. Present Grade/ Designation

4. Places of postings in last 6 years. i.

(Covering at least 3 postings) ii.
iii.
iv.
v.
5. Post held at the time of irregularity & since

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Name of the branch Period of Posting Nature of work/duties
(Month & Year approx.) performed

1. Whether earlier at any time in the past, Interrogated in

1
Connection with any complaint/allegation/ transaction or
Event with this associated/ dealt with.
:1
(Brief particulars with Name of the Branch to which the matter pertained)
12
I certify that the above information/ particulars have been furnished by me on ……………………to
Sri…………………………………...Grade……………..in the course of investigation relating to
4

……………………………………. and these are correct to the best of my knowledge.

02
/2

Signature
6

Name:
/0

Grade:
11

Assignment:

Place of posting:
4

Date:
38
81

113
 BIO DATA (As on ……………………………………….)
(In respect of each outsourced agency interrogated by the Investigating Officer)

1. Name of outsourced agency in Full(in block letters)

2. Date of association with Bank as BC/CSP/ATM cash

loading

3. No of Accounts/ATMs (cash loading)

4. Name of linked Branch

5. Distance of link branch from nearest CSP/ATM

6.Whether earlier at any time in past, interrogated in

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connection with any
complaint/Investigation/transaction.

1
I certify that the above information/ particulars have been furnished by me on ……………………to
Sri…………………………………..Grade……………..in the course
:1
of
……………………………………. and these are correct to the best of my knowledge.
investigation relating to
12
4

Signature
02

Name:
(Name of BC/CSP/Vendor of Agency)
/2

Address:
Date…………………………….
6
/0
11
4
38
81

114
 SPECIMEN FORMAT OF INTERROGATION

Canara Bank,
…………………………Branch,
Camp office.
Sri……………………………..
…………………………………….

Dear Sir,

INVESTIGATION

I have been instructed by the appropriate authority to conduct Investigation into a case where it has been
revealed from the relevant records that you were associated with the same. In order to bring out facts of
the case, I have considered it necessary to seek from you, your comments, replies and clarifications on the
connected matters and therefore I request you to furnish your comments/clarification/replies on the

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under-noted questions/ matter being put by me to you.
Yours faithfully,
(Name…………………………………)
Designation………………………….

1
Date…………………………………….

:1
Camp……………………………. (Name of branch)
Nature of records shown should be indicated here by recording here as
12
(So and so record/circular etc.) Shown Replies/Comments/Clarification.
1.
2.
4

3.
I have been shown all the records/ books referred to on pages…………………above before giving my
02

comments/replies on each of these as above.

/2

Note:
6

Signature and date

/0

(Member of staff or public)

(A copy of the Authority letter as well as complaint letter, if any enclosed as Annexure)
11
4
38
81

115
 ANNEXURE VII

FORMAT OF INVESTIGATION REPORT

INVESTIGATION REPORT SUBMITTED BY

Name of Investigating officer

Staff No.
Designation
Current Placement

IN THE MATTER OF * (mention the nature of case - Heading should not be judgmental. Heading
should be brief and based on reporting as furnished under Para 1.3 of Policy on Staff Accountability.
The following is an indicative list):

* Complaint received/Whistle blowing/anonymous/pseudonymous

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Reporting of misbehavior/ use of abusive language / refusal of work
Reporting of irregularities in advance accounts
Reporting of fraud / misappropriation
Reporting of excess cash / shortage

1
Reporting of LCCR difference and related issues etc.

1. Authority who ordered/instructed to investigate

:1
12
Name of the Authority, Desg.
Date of entrustment /
4

Letter Ref No.

02

2. Background / Case details

/2

Brief background of the case, which warranted investigation alongwith the Branch name, DP code, R
O name and C O name. [Here outcome of the investigation should not be furnished]
6
/0

3. Details of investigation conducted:

11

a. Date/s on which investigation conducted – Give all dates

b. Place of visits by Investigating Officer – Give all places

4
38
81

c. Persons contacted, statements taken

Give Name / Staff No /Designation/ Placement of all staff members contacted.

116
In case the Investigating Officer is able to pin point prima facie an employee is directly responsible [in
credit and other matters] or a suspect in case of fraud, misbehavior and other irregularities, the
statement / version of that employee, be obtained during the investigation.**

In case of customer complaints with respect to fraudulent encashment of cheques etc., the
Investigating Officer as far as possible should try to obtain statement / version of such customer
[depending on the availability of such customer in station].**

**Statement obtained from suspected officials/customers should be recorded in their own

handwriting and they should be asked to sign the same. In case, they refuse to do so, their version shall
be recorded in the presence of two witnesses. The statement be countersigned by the witnesses, with
their name & address. A specific mention shall be made in the Investigation Report by the Investigating
Officer regarding this.

d. Written statement of staff recorded? If not, reasons

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e. Documents verified / collected etc.

The list of the copies of documents collected are to be enclosed to the Report by giving the numbers

1
serially as Annexure - 1, 2 etc.

:1
Whenever a document / record is being referred to / mentioned in the Investigation Report, the
Annexure Number also should be mentioned in the report in brackets. “E.g. A perusal of NF 589
12
[Annexure-2]………….”

4. Investigation observations:
4
02

Observations which have come on record in the case keeping in view the relevant Circulars /
Communications and the laid down guidelines which were in vogue during the relevant period.
/2

Wherever lapses are found relevant dates be furnished by the investigating officer invariably.
6
/0

(NON-ADVANCE/CREDIT MATTERS)
11

Observations be covered under the heads as indicated in Para 3.0 & Para 4.0 of Policy on Staff
Accountability. An indicative list is provided hereunder:
4

a. Violation of then prevailing Rules, Regulations, Manual of Instructions, Systems & Procedures
38

b. Existence of Fraud Element on the part of any staff:

i. Name, Staff No. Designation:
81

ii. Current Placement:

iii. Tenure at the place of misconduct:
iv. Documentary evidence to that effect:
v. Modus operandi adopted for the fraud etc:

c. Wilful acts / fraud by outsiders if any :

d. Failure of Internal Control, if any

e. Role of the Branch Head

f. Roles of CO/HO/Inspection, if any :

117
g. Financial Implications / Probable financial Loss :

h. Chances of recovery : Bright / bleak, reasons thereof

i. Legal Action, if any, Present Position thereof :

j. Any suppression of vital information observed:

k. Any other relevant information :

5. Analysis of discussion with staff/persons connected with the incident:

The version of all the persons who have been contacted during investigation shall be analysed here
with written statements obtained invariably. Written Statements be as per the Format-3 & Recorded
Statements be as per Format-4.

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6. Analysis of evidence & Conclusion:

Record the details covering the following:-

1
What had happened, when it happened, why it happened, how it could have been avoided, evidence

:1
on record and analysis thereon. 12
Each charge or allegation shall be discussed specifically referring to records / documents / circulars /
statements and conclusion be given as to whether the allegation is true or false.
4

7. Staff lapses identified:

02

(in case the information does not fit in this column, the same be furnished as an Annexure to
Investigation report in the same format under Landscape orientation duly numbered, and referred in
/2

the investigation report)

6

Sl. Name, Staff No, Tenure of Date of Irregularities Documentary /

/0

No. then the staff at retirement / statements in support

Designation, the relevant of the staff lapses thereof with date of
11

Present point of found observed documents/statements

Designation, time at the responsibl (lapses wise)
Present place of e
4

placement of the misconduct

38

Staff found
responsible
1 2 3 4 5 6
81

A. Fro To i.. Doc. x.

m ii.. Doc. y. and / or
iii.. Statements of __________
B. i.. Doc. q, x, r and / or
ii.. Statements of __________
C. i.. Doc. y, x, r and / or
ii.. Statements of __________

The Investigating Officer should specifically and separately mention the documentary / oral evidence
in support of his conclusion against each official mentioned in his Report for each lapse even at the

118
cost of repetition. It should be ensured that the wordings like ‘same as above’, ‘as applicable in [a]
above’ etc should be avoided.

8. Confirmation that documents have been kept in safe custody:

The original documents of which copies have been collected by the Investigating Officer and based on
which he is arriving at his conclusions are to be kept at the concerned branch / office under safe
custody of the branch incharge. A letter should be addressed to the branch incharge in this regard to
keep those documents [list of which to be enclosed to the letter] under safe custody and a confirmation
having noted the same shall be obtained. A copy of this letter + list should be enclosed to the
Investigation Report.

PLACE : SIGNATURE OF THE INVESTIGATING

DATE : OFFICIAL
Name :

PM
Email ID :
Mobile No.:
Enclosures:

1
List of documents to investigation report

:1
5.
6. List of Written/Recorded Statements as per format obtained during investigation
Report on the lacunae unearthed during investigation to Authority who ordered investigation.
12
7.
8. Letter addressed to the Branch-incharge for having kept the original documents under safe
custody.
4

P.S.:
02

1. The investigation report shall satisfy the basic requirement of brevity, clarity, accuracy, readability
/2

and also specifically reveal whether the allegations are factually true or not. If the allegations are
found to be correct, the nature of lapses identified vis-à-vis the officials responsible for the same
6

be furnished.
/0

2. The IO should immediately start the investigation without delaying the process, since, it would be
11

prudent to start the process, when all the persons, documents, evidence are available.
4

3. While fixing the staff lapses, the role of each concerned official, his tenure at the place of
misconduct shall be kept in mind. The evidence collected during the investigation be duly analyzed
38

taking into consideration the role played by the officials vis-à-vis their responsibility / duties /
KRA / Attendance / nature of work etc.
81

4. The IO should ensure furnishing correct Staff details in the investigation report. He may obtain the
assistance of HRM Section in collecting information viz., Tenure, Date of Retirement, Pension/PF
optee. Only thereafter the lapses are to be identified specifically against each official.

5. No observations should be recorded based on imaginative presumptions/ assumptions.

6. The facts mentioned should be borne by records/evidence/ statements.

7. Wherever the violation of Rules, Regulations, Manual of Instructions, Systems & Procedures are
identified, the rules violated should be specified in the report under Para 4 under the relevant
head.
119
8. Lacunae in the systems and procedures observed, if any, shall not be recorded in the Main
Investigation Report. However, the same can be forwarded as a separate report to the Authority
who has ordered for investigation.

9. In case a supplementary investigation is to be conducted, the investigating officer, if he is different

from the original investigating officer, should read the original report before commencing the
supplementary investigation. The Investigating Officer should furnish the reasons for the
supplementary investigation in the beginning linking / referring the original investigation report
in the supplementary report.

10. The Investigating Officer should not comment on the action to be taken against any staff in his
investigation report / supplementary report.

11. The investigation report be preferably typed in A4 size paper as per the format and handwritten

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reports be avoided as far as possible.

12. The investigating officer may hand over the soft copy of the report to HRM Section on submission

1
of the final investigation report to enable calling for explanation.

:1
12
-oOo-
4
02
6 /2
/0
11
4
38
81

120
 ANNEXURE VIII

CHECK LIST OF ITEMS FOR MATTERS RELATING TO SECTION 17A OF THE PC ACT 1988

S Head Yes / No Folder No. / Page No.

No
1 Name, designation or office held by the
public servant against whom the allegation
of an offence under the Prevention of
Corruption Act, 1988 has been made.
If the person has ceased to be a public
servant, the post or office last held by such
person may also be indicated.
2 The post or office held by such public
servant at the time of alleged commission of

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offence under the Prevention of Corruption
Act.

Please furnish the details of the

1
Appropriate Government or Authority the
public servant was serving at the relevant

3
point of time.
Whether the request is :1
12
(i)
based on a complaint received?
Please enclose a copy thereof.
4

(ii) If yes, please enclose an

02

authenticated translation thereof

where the original complaint has
been made in a vernacular
/2

language.
6

4 Whether the complaint prima facie reveals

deriving of an undue advantage by a public
/0

servant for self or any other person?

11

Please furnish details.

5 Whether any information is available in
respect of the bribe giver?
4
38

If so, please furnish details.

6 Mention clearly, the offences under specific
provisions of the Prevention of Corruption
81

Act, 1988 as alleged against the person who

is or has been a public servant.
7 Please provide specific details of the
recommendation made or decision taken
by a public servant, which is relatable to the
offence alleged against the public servant.
8 In case any preliminary enquiry/ inquiry
was undertaken at any earlier stage, please
enclose the findings thereof and it may also
be confirmed as to whether prior approval
was sought for such PE/ inquiry?

121
9 Whether any criminal offences under the
Indian Penal Code or offences under any
other law have also been alleged against the
public servant? If so, please furnish details
thereof.
10 Any other information which is considered
to be relevant for consideration of the
proposal.
11 Name, designation and contact details of
person authorized by the Police Officer of
Appropriate Rank to rectify inadequacies
and deficiencies in the proposal seeking
Previous Approval, as pointed out by the
Officer designated to receive the proposal
by Appropriate Government or Authority.

PM
Signature ________________
Date: ____________________

1
:1
Name of Police officer authorised
to seek prior approval
12
(in Block letters) __________

Designation_______________
4

Telephone No._____________
02

Email ID__________________
6 /2
/0
11
4
38
81

122
 ANNEXURE IX

RANKS OF POLICE OFFICER FOR SEEKING PREVIOUS APPROVAL UNDER SECTION 17A IN
RESPECT OF DIFFERENT CATEGORIES OF PUBLIC SERVANTS

S No Designation / Rank of Rank and Status of persons who are have been Public
equivalent Servants
1 Director General of Police i. Union Ministers
or equivalent ii. Appointees carrying the rank equivalent to Cabinet
Ministers/Minister of State
iii. Members of Parliament
iv. Chief Ministers of State Governments
v. Ministers of State Governments
vi. Members of State Legislature
vii. Judges of the Supreme Court and High Court
viii. Public Servants at the level 16 as per the Seventh Pay

PM
Commission and above and their equivalent
ix. Chairpersons/ Managing Directors of Public Sector
Enterprises (both Central and State) and Public Sector
Banks (Board level)

2 Director General of Police
or Addl. Director General
of Police or equivalent
1
i. Public servants drawing pay at level 14 and 15 as per
ii.
:1
the Seventh Pay Commission and its equivalent
Board level (Directors), Senior Management level
12
appointees, (Pay level E 7 to E 9) viz. General Managers,
Senior Managers, Executive Directors, Deputy
Managing Directors of Public Sector Enterprises (both
4

Central and State) and Public Sector Banks and their

02

equivalent
3 Inspector General of Police i. Public servants drawing pay at level 11 to 13 and 13A
or equivalent as recommended by the Seventh Pay Commission and
/2

its equivalent.
ii. Middle management level officers of Public Sector
6

Enterprises (Pay level E3 to E 6) (both Central and

/0

State) and Public Sector Banks and their equivalent

4 Deputy Inspector General i. Public servants drawing pay below level 11 as
11

of Police, SSP, SP or ASP recommended by the Seventh Pay Commission and its
equivalent.
ii. Junior management level officers of Public Sector
4

Enterprises (Pay level EO to E 2) (both Central and

38

State) and Public Sector Banks and their equivalent.

iii. All other staff of Public Sector Enterprises and Public
81

Sector Banks and their equivalent.

iv. All other public servants.

NOTE: Persons authorised to investigate wilt not be below the rank of officers as stipulated under
section 17 of the Act

123
 ANNEXURE- X

REFERENCE TO ADVISORY BOARD FOR BANKING AND FINANCIAL FRAUDS (ABBFF)

EXAMINATION OF ROLE OF OFFICIALS / WTDS IN FRAUD ACCOUNTS WITH AGGREGATE

SANCTION LIMIT OF RS. 3.00 CR AND ABOVE

PART - A

1.
Name of A/C Banking Since

PM
Name of the Bank Branch
Office/Circle/Region

1
Banking arrangement Total Exposure of reporting

:1
Consortium/MBA/Sole Bank
12
Consortium/MBA/Sole
Date of NPA Date of Identifying Fraud
4
02

2. Reporting of account as fraud:

/2

i) Date of Reporting fraud to RBI

6

ii) Total amount involved

/0

iii) Date of occurrence

iv) Date of detection
11

v) Reasons for delay, if any in

reporting fraud to RBI
vi) Modus Operandi
4

vii) Fraud committed by – whether Staff

38

, customer, outsider
81

3. List of officials involved:

S No Name & Present Posting (last 10 years) Details of punishment imposed

Designation, Date of in the past, if any
Place Period
Retirement

124
4. Details of role and responsibilities of each official including WTD at sanction / disbursement
/ Monitoring stage.

5.
Views of IAC

PM
1
:1
6.
Views of CVO on the views of IAC
12
4
02
6 /2

7.
/0

Views of DA on the views of IAC and CVO

11
4
38
81

Dated: Circle Head

125
 PART – B

Details of the Borrowal account:

1. Name and Address of the Borrower Constitution

2. Nature of Activity Date of establishment

PM
1
3.

:1
Names & Addresses of the Promoters/Directors*: [*Identifiers based on KYC guidelines]
12
S.No. Name Designation Identifiers Full Address
DIN PAN Passport Others
(Aadhar
4

Card No.)
02

1
2
/2

3
6
/0

4. Position of account.
11

Status Limit Outstanding Overdue

4

i) As on Date of NPA
38

DATE…
ii) Latest position as on
81

iii) Apprehended Loss, if

any.

5 . In case of Take over finance, whether policy guidelines of the Bank were followed and satisfactory
status obtained from transferor Bank/Satisfactory credit information obtained from agency

126
 6. CIBIL Records, RBI defaulter lists, ECGC caution list etc. are extracted &verified before
sanction and commented upon in the proposal put up to sanctioning authority.
KYC guidelines in respect of
firm/company/borrower/guarantor complied
with& duly verified Documents are held on
record. (Discuss lapses, if any)

7. Name and Designation of Sanctioning authority

(Give details of sanction, in chronological order since inception of the account including

PM
renewal/review Ad-hoc.) (Rs. in Cr.)
S.N Sanctioning Authority Name Date of Fund Based NFB Any
& Designation (In case of Sanction other
TL WC

1
Committee – name of the approval
Committee)
i
:1
12
ii
iii
4
02
/2

8. Details of loans availed from other Banks/FIs (Rs. in Cr.)

6

S.N. Bank‘s/FI‘s If in Limits Present Status

O/S of a/c
/0

consortium/MBA Fund Based NFB

%age of share of TL WC
11

all banks.
i
4

ii
38
81

CONNECTED ACCOUNTS OF PROMOTERS/DIRECTORS

9. details of connected accounts/allied/associate/sister concerns with status of account with other
Bank/FIs be ascertained and reported as under. (Rs. in Cr.)

Name of Nature of facilities FB NFB O/S Irregularities, if

Banks/FIs any.
i
ii
iii

127
10. Primary Security
*RV: Realizable Value, **MV: Market Value) (Rs. in Cr.)
Particulars/description of primary At the time of Latest Position If consortium,
security, viz- Land & building of sanction Date... our share in
factory, P & M, Stocks/ Date... VOS
Receivables, etc.
RV* MV** RV* MV**

PM
11. Collateral Security (Rs. in Cr.)
*RV: Realizable Value , **MV : Market Value)
S.No Particulars/description of At the time of As per latest If consortium,

1
Collateral security sanction available our share in
Date… Date…. VOS
RV* MV**
:1 RV* MV**
12
4

TOTAL
02

Guarantor(s)
/2

12.
6

S. No. Name At the time of sanction As on last available

/0

Date… Date…
NM/NW NM/NW
11
4
38
81

13. Other Details

S. No. Particulars Yes/No Remarks, if any
i) Whether Valid and enforceable EM on IPs has been
created. if no; then
reasons should be discussed
ii) Whether creation of charge filed/modified with ROC
iii) Whether creation of charge registered with CERSAI
iv) Status of compliance of terms & condition of sanction

128
14. INSPECTION OF SECURITIES
i) When the securities were last inspected and adverse
finding if, any
ii) Whether end use of funds verified
iii) Date when last stock audit done and adverse findings if
any.

15. Reasons attributable to account slipping to NPA should be discussed, comment for steps taken to
recover bank’s dues. Details of compromise proposal, if any, under consideration, be given)

PM
16.
Whether early warning signals
What remedial action taken When the account was Red Flagged

1
identified

:1
12
4
02
/2

17.
6

When was the Forensic audit done, if any. Adverse observations

/0
11
4

18.
38

Adverse observations on the account by

Auditors Valuers Advocates
81

19. Recovery Action SARFAESI

129
 Date of Issue of Date
noticeof issue of Date
notice of taking Date
overof filing suitPresent
with status
under 13(2) under 13(4) possession DRT

20. Scope of recovery:

(Scope of recovery vis-à-vis Primary/ Collateral security and other attachable assets available in the
account, whether attachable assets are identified and valued).

PM
Date:

Circle Head

1
:1
12
4
02
6 /2
/0
11
4
38
81

130
 ANNEXURE – XI

(As per para no 1.8.1.6)

SUBMITTED BY: SUBMITTED TO:

STAFF ACCOUNTABILITY CELL VIGILANCE WING,
CR & M SECTION, CIRCLE OFFICE HEAD OFFICE, BENGALURU.

Ref: Date:

SUB: QUARTERLY RETURN ON DISPOSAL OF STAFF ACCOUNTABILITY REPORTS IN RESPECT

OF ADVANCES LARGE VALUE (I.E. OUTSTANDING LIABILITY OF Rs. 30 CRORES AND ABOVE)

PM
FOR THE QUARTER ENDED

(Accounts slipped to NPA during the Quarter)

1
Sl. Name of Name of the Sanctioning Sanctioned Outstanding Date of Remarks
No the
Borrower
Branch & DP
Code
Authority
:1
amount in Liability in
Crores crores
NPA
12
4
02

The data above also includes:

/2

a. The eligible accounts which have been categorized in NPA on account of MOCs -
6

b. The eligible accounts, if any, of PCBs operating in our Circle.

/0
11

Date:
4
38

Place: Circle Head

81

CC: STAFF ACCOUNTABILITY SECTION, CA&M WING, HO

131