Audit - 25. page

Legal Requirements For the purposes of section 24 of the Banking Regulation Act, 1949, the valuation of securities is to be done with reference to the cost price, market price, […]

Balance Sheet Presentation The Third Schedule to the Banking Regulation Act, 1949, requires the disclosure of investments in the balance sheet as follows: I. Investments in India in (i) Government […]

Disclosure Requirements Investments of banks should be disclosed as per following 6 classifications: (i) Governments Securities; (ii) Other Approved Securities; (iii) Shares (both equity as well as preference); (iv) Debentures […]

Important Terms  of Investments The following are some of the terms, which are commonly used in relation to investments of banks. Approved Securities Section 5(a) of the Banking Regulation Act, […]

Non-Convertible Debentures (NCDs) It is a debt instrument issued by a corporate (including NBFCs) with original or initial maturity up to one year and issued by way of private placement, […]

Reconciliation Operations areas are typically involved in a number of reconciliation processes, including the reconciliation of dealers’ overnight positions, NOSTRO accounts and brokerage payments. This can also mean reconciling positions […]

Input and completion The first core function for the back office is to extract the details of the deal through the input system and confirm the same after verifying the […]

Counterparty confirmation The second core function for the back office is to verify the deal from the counter party as soon as possible after the transaction has been done. For […]

F-TRAC (FIMMDA Trade Reporting and Confirmation) System It is to be noted that all entities regulated by RBI, IRDA and PFRDA have to mandatorily report secondary market Corporate Bond trades […]

Settlement The third core function in the processing chain is that of settlement. This can take the form of a clean currency payment/receipt at the bank’s accounts or through the […]