Branch Operations, Audit and Inspection Compliance
This domain tests whether branch operations are controlled and whether inspection findings are converted into sustainable fixes, not merely replies.
Core rules
- Cash: vault limits, dual custody of keys and combination, joint custodian, registers and surprise verification.
- Lockers: RBI's revised safe deposit locker guidelines (2021) require an agreement, nomination, inventory and a clear liability framework; the bank cannot wash its hands of responsibility.
- Accounts: nomination, inoperative accounts, unclaimed deposits routed to UDGAM, death claims and standing instructions.
- Clearing, ATM cash, reconciliation and statutory returns are part of the same control chain.
- Inspection compliance: maintain a compliance register, respond within timelines and verify rectification.
Worked example
Inspection finds locker keys held by one official and no nomination recorded. The branch must restore dual custody, obtain nominations, review the locker inventory, report the breach and test other lockers. A reply that "instructions will be followed" is not evidence.
Traps
Single custody; missing nomination; not displaying required notices; ignoring inspection findings; treating registers as paperwork rather than controls. Branch inspection is risk-based; repeat findings attract higher scrutiny.