Implementation of Jilani Committee Recommendations
The RBI had set up a “Working Group to Review the Internal Control and Inspection and Audit System in Banks” under the Chairmanship of Mr. Rashid Jilani. The Working Group was constituted in February, 1995 to review the efficiency and adequacy of internal control and inspection and audit system in banks with a view to strengthening the supervision system, both on-site and off-site, and ensuring reliability of data.
The 44th Report of the Committee on Government Assurances expressed concern that despite reporting of the compliance with recommendations of the Jilani Committee, by the controlling office/branches, the same might have not been implemented. Accordingly, RBI laid down the following procedure to ensure the implementation of recommendations:
A format containing 25 questions was issued to indicate the answer as either “Implemented” or “Not Implemented”.
Information received from all branches and ROs/ZOs to be consolidated at Head Office level and submission of consolidated statement to RBI.
Implementation of recommendations to be verified during concurrent audit/inspection of branches/controlling offices and comment on the same to be included in their report.
The report of the Jilani Committee contains twenty five recommendations which can broadly be divided into three categories, (i)dealing with the EDP environment in the banks,(ii) dealing with the inspection/internal audit system in the bank and (iii) deal with other miscellaneous aspects of functioning of a bank. The RBI has summarised each of these recommendations for the purpose of reporting of their implementation by the banks, in a ‘Implemented’ or ‘not implemented’ format. Some of the recommendations of Jilani Committee are to be implemented by the banks at the branch office level, whereas some others are applicable to the regional/zonal/head office level. However, some recommendations findapplicability at all levels.