Parameter/ Master File :
Parameters/ Master are quantity constant but could vary for different cases. In banks, we come across various types of accounts with different guidelines to operate them. In a Parameter/ Master File, all the relevant information related to that particular account is feeded and stored. The information would relate to Rate of Interest to be applied, Penal Interest to be charged, Commission Rates, Operation Limits in case of loans, Nature of operation of account, single / jointly etc. This exercise is carried out at the first stage of implementation of computerisation of the Branch. Thereafter, the system software behaves according to the Parameters enforced currently are as per latest circulars. It is important to check that the Parameter/ Master File if accessible to the operators should only be in read-only format, else it would invite undesirable modifications, which would lead to revenue leakage and misuse of funds. Whenever any alterations are to be made in the Parameter/ Master File, printouts of the file prior to the changes and after the changes should be taken and documented in safe custody of Branch Manager. Auditor should verify the following:
a. Authorised personnel to mark all the Bank Holidays into the software in the beginning of the Financial Year.
b. Operation limits and authorisation levels are defined clearly for the operators and supervisors.
c. The parameters for Interest and Bank Charges are defined in accordance with the relevant rates and guidelines. The file is updated as and when changes are announced.
d. Printouts of parameter file are taken out before and after changes are given effect and documented.
e. The safe custody of the printouts with Branch Manager and alterations are entered into “Parameter Register”.