Balance With RBI
In a bank, only a few select branches are designated to have accounts (Deposit/Current) with the RBI, the main account generally being with the Treasury Branch. The procedures of confirmation/reconciliation are no different as compared to accounts and balances with other banks and need to be followed.
It is relevant to point out that, amongst others, currency chest operations involve entries in the accounts maintained with RBI. Where currency chest is attached to the branch maintaining RBI account, all deposits into and withdrawals from the currency chest trigger a debit /credit to the account maintained at the Branch itself. Other branches of the bank having currency chests but not maintaining the RBI Account would be linked to such Branch and would be required to transmit information forthwith for all deposits into/withdrawal from the attached currency chest through Inter branch mechanism. The effect of such entries is required to be considered in the RBI account on a value date basis.
The auditor of the Branch maintaining the RBI account should follow direct confirmation procedures of the balances in the RBI account and examine the reconciliation to ensure that all transactions originating in the account statement of the RBI are duly responded on value date basis. He should enquire into the reasons /justification for the following items appearing in the reconciliation statements:
(i) cash transactions remaining unresponded;
(ii) revenue items requiring adjustments/write-offs; and
(iii) old outstanding balances remaining unexplained/ unadjusted for significant period.