Accounting, Reconciliation and Reporting
What the exam tests
This domain tests double-entry accounting, ledger control, reconciliation, NPA provisioning, regulatory returns and accurate reporting of the branch's financial position.
Core rules
- Every transaction affects at least two accounts. Maintain the cash book, day book, general ledger and subsidiary ledgers, and rectify errors through proper journal entries rather than overwrites.
- Reconcile correspondent accounts, ATM cash, clearing settlements, IMPS and UPI suspense, and inter-branch balances. Age every unreconciled item and escalate beyond the prescribed timeline.
- Recognise income on accrual only when recovery is not doubtful. Apply RBI asset-classification and provisioning norms, and stop accruing interest on NPAs as required.
- Maintain CRR and SLR as notified, and submit regulatory returns accurately and on time. Reconcile the returns to the general ledger before submission.
- Report extraordinary items, frauds and large exposures through the prescribed channels.
Worked example
A ₹50,000 IMPS credit fails after the customer's account is debited, and the amount sits in an interbank suspense account. Match the UTR, confirm the beneficiary bank's return, and reverse the amount to the customer within the bank's turnaround time. If unresolved beyond the prescribed period, escalate and keep an ageing report. Do not park it indefinitely or credit it to income.
Traps that cost marks
Using suspense accounts as a dumping ground, reconciling only at year-end, underproviding NPAs, netting CRR against SLR and delaying regulatory returns are frequent errors.