Mr.

Hemant Parab
Chartered Accountant
1st April 2017

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 CBS
It is the process of providing a centralized on line
system where all the data related to transactions,
customer data are stored and are available to all
networked branches for access.

 The information technology & Communication

technology are merged to suit core needs of
banking is known as core banking solution.

 It is common IT solution , a central shared

database support the entire banking application

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 Mobile &
Phone
Banking

Center
Internet Bank
Banking Server Branch
(Data)

ATM ,Debit
&Credit
Card

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 Major types of
CBS Program

Finacle BaNCs 24 FlexCube C-Edge

(Oracle
(Infosys) (TCS) (SBI & TCS)
Corp)

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 Bank of India (BOI)  Dena Bank
 Bank of Baroda ( BOB)  Oriental bank of Commerce
 Indian Overseas Bank (IOB)  Andhra Bank
 Punjab National Bank (PNB)  IndusInd Bank
 UCO Bank  Axis Bank
 IDBI Bank  Federal Bank
 Vijaya bank  ICICI Bank
 United Bank of India  Kotak Mahindra Bank
 Union Bank of India  ING Vysya Bank

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B) BaNCs 24 (TCS) C) FLEXCUBE (Oracle)
 SBI & Associates Banks  Syndicate bank
 Central Bank  Canara Bank
 Bank of Maharashtra  Yes Bank
 Allahabad Bank  HDFC Bank
 Indian Bank  Lakshmi Vilas Bank

D) C- Edge ( SBI &TCS)

 Small Rural Bank &
Cooperative Bank

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 Data Centre
 CBS application software ( Finacle /BaNCs 24)
 Hardware at Branches & Data center
 Network connectivity
 Availability of Power continuty
 Delivery Channels ( Broadband MTNL, Hathway,
Lease Line)
 Disaster recovery site

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 All data processing
 Beginning of the Day (BOD)
 Storage, back up operation
 MIS report generation
 Inter branch account reconciliation
 Preparation of B/S ,PL and Trail Balance and
Annual results
 Interest application & Other charges
e.g . Folio charges, Minimum balance charges etc.

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Manual Check & Control
 Transaction input and Authorisation
 Completion of Branch Operation
 End of the Day (EOD)
 Verification of Document & Securities
 Inspection of stock &Book Debts
 Inspection of Assets & Security
 Pledge of NSC/KVP/Gold Jewelry
 Lien of FD & Mortgage of Property
 KYC Checks
 Monitoring operation of A/c. End utilisation of fund
 Classification of Advance as per RBI norms
 Discretionary Power of Operation -
TOD , Waiver etc.

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 Threat and risk (Challenge)
(A) Non availability of continuous power
(B) Net work connectivity, low capacity etc

 Auditor Roll under CBS : Risk assessment & Control

(A) Audit risk is acceptable at low level
(B) Procedure of Data transmitted is correct & complete
(C) Various control exist between on line and off line records

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 Confidentiality:
Information is shared with authorized personnel
( Maker and checker concept)

 Integrity:
Information is authentic ,accurate and complete

 Availability:
Systems responsible for delivering , storing and
processing information

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 Maker checker concept always in used
 No unauthorized person allowed to record the
transaction
 Only authorized person allowed to modified/amend
master data ,under duel control
 No operation on Holiday at Branch
 Operation error reported and procedure of
rectification
 Dummy accounts balance should be NIL
 Exceptional report must be generated and to be
verify

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 Restriction in server room
 Ensure floppy/Pen drive access not allowed on
nodes (except for RTGS)
 Internet access should be separate from CBS
machines
 Maintain Hardware access Register
 ATM Cards & Passwords Pin envelopes are
stored in secured area under duals control

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 Power back up
 Maintenance of down time Register
 Machine break down register
 Insurance /AMC of Machinery &
Equipment
 Fire Extinguisher installed and active

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 Password management & History
 Check active user IDs and guest IDs
 Deactivation of User ID –where user
transfer to other branch – Staff, auditor
 Special emphasis on unsuccessful login
attempts

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SR.N
O. NAME OF THE REPORT
1 Abnormal Transaction Inquires
2 Account TOD Inquiry
3 Exception Report
4 Insurance Expired
5 Accounts Interest report
6 Loan sanction Limit Reivew
List of Pending & Dishonored
7 Bills
8 Loan Interest Detail Inquiry
9 Loan Overdue Details
FINACLE BANCS 24
DEPOST/ CC / OD & DL/ TL Account & Services ---
ATI Enquiry --- Transaction
ACTODI TOD Report
EXCPRPT Report Server ---- Exceptional Report
INSEXPD Report Server---Expired Insurance Report
Report Server ----CC/ OD & Loan Balance File Or
Product Sheet to be requested from Data centre (If
AINTRPT not available through product name.)
CC /OD & DL/ TL Accounts & Services --- Enquiry -
LAROR ---Short/ Long Enquiry
FBPADB Report Server --- MIS Report/ Trade Module
CC / OD/ DL/ TL Accounts & Services ---- Interest
AITINQ Rate History
CC / OD/ DL/ TL Accounts & Services --- Enquiry ---
LOANODUE - Long Enquiry / Short Enquiry
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SR.NO.
NAME OF THE REPORT FINACLE BANCS 24

CC / OD/ DL/ TL Accounts & Services ---

10 Loan Overdue Position Inquiry LAOPI Enquiry ---- Long Enquiry / Short Enquiry
DL / TL Accounts & Services --- Security ---
11 Loan Document expiry dates INQLAC - Customer --- Amend/ Enquiry
Report Server --- MIS Report / Trade
12 PCFC Balancing Report PCFCBAL Module
CC / OD & DL/ TL Accounts & Services ---
13 Pending Installment List PLIST Enquiry ---- Accounts
CC / OD/ DL/ TL Accounts & Services ----
14 Rate List History Query RTHQRY Interest Rate History
Report for Matured OD/FD Report Server --- MIS Report --- Security
15 Accounts ODFDREP Matured Report
Through offline monthly repost on Account
16 TDS Inquiry & Printing TDSIP wise/ Transaction wise tax deduction
CC / OD & DL/ TL Accounts & Services ---
17 Transaction Exceptions Inquiry TEI Enquiry ----Transaction
Guarantee Expired but not Reports Server---- Trade Module----
18 Reversed GENR Guarantee Expired Report
19 Overdue Foreign Bills ODFB Report Server --- Trade Module

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 SOL ID – Service out Let ID i.e. Branch code
 Set ID – Branch back office No. Branch who
initiated the transaction
 Transaction ID , Journal No.& Date –
A Unique No. generated after completion of
Transaction through TM Module with date

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 Account No. Formation under Finacle
Separate series of Account No. for different Types of Accounts
E.g. A/c. No.34800 204 0006666 , made up of branch code i.e.
34800, Account Type - 204 , Account No.0006666
 Transaction event
Entered – Post- Verified-Modified -Authorised
for Valid Transaction there are Two persons- Maker & Checker –
Dual Control matrix used for all transaction
 Transaction types and sub type
Tran Type Eg. C- Cash , T- Transfer
Sub Tran Type Eg. CR- Cash Receipts, CP – Cash Payment
 General Ledger Concepts
GL->GL subhead->Account
Stage- A- Add , I – Inquiry , V– Verify , M- Modify , D- Delete
Z – Closure

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 Exception Types :
Control error handle through Warning, Exception and Error
a) Warning – Systems gives warning for possible error based on prefixed
criteria
b) Exception – Transaction recorded in the exception report for override
rules by user
c) Error – Systems gives error message for incorrect value and not allowed
to go further
 Accounts and Customer Master :
a) ACM : Account Customer Master – Its provide basic detail Cust ID,
Accounts types etc.
b) INTTM : Int. table Maintenance Used to modify interest rate on deposits
and Advance
c) ACINT : To verify running interest Calculation
d) TM&TI : Transaction maintenance and transaction Inquiry – with used of
TranID & Date transaction can be located
e) FTI : Financial Transaction Inquiry – Used to find the transaction based
on various search criteria.

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f) SRM : Security Register Maintenance For setting up of Drawing
Power and maintenance of securities , bank officer need to up
date the stock and book debts statement ,Insurance /Valuation date
not filled in
g) ALM : Account Lien Maintenance – used to mark/lift lien from a/c
h) ACTODM : Account TOD Maintenance – Setting up TOD system
allows user to process to specific customer transaction beyond
the regular limit set up at account level TODRP – monthly /yearly
TOD report for all customers System generated TOD – interest ,
bank charges applied as debit in insufficient limit and Manual/user
generated TOD –Payment against clearing allowed within
prescribed limit for specific period
i) LTL : Limit Tree Lookup – Used to monitor utilized and available limit
for customer
j) ACLHM : Account Limit History Maintenance – History of DP and
Limit

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k) AINTRPT : Account Interest Reports
l) DDSM : DD/PO Issued Status Maintenance
m) ICHB : Issue Cheque Books
n) ISRA : Inventory Status Report – Stationery available under
SOL ID
o) TDSIP : TDS inquiry/print – Various menu as per different bank
p) BRBPR :Balancing Report for Bills Purchased (Inland) –Long
pending /overdue bills can be verified
q) FBP : Foreign Bill Inquiry – Lodgment (L), Realization ( R) ,
Closure (Z)
r) AFI : Audit File Inquiry - any change in Account status (eg.
Dormant to active)
s) Q -Exit

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Under CBS risk is higher if controls are week and
incorrect /incomplete input date entered in the systems
a) Systems Level Checks & Control
 Operating systems manual
 Password expiration
 User ID register
 Duty roster
 Antivirus updation
 Computer manual
 Day end control

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b) Manual Checks & Control:
• Correct input data and complete filled up in the
systems as per statutory compliance
• Physical verification of Assets and Cash &Security
• Monitoring operation of account and end utilization of
fund
• Opening Advance A/c and deposit as per correct prefix
, Chose correct product is chosen
• Verification of Loan document for compliance with
sanction terms
• Classification of advance as per RBI norms

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 Zero Balance in account
 Loan a/c with zero interest rate
 Overdue Term Deposits/LC
 Application of Interest, Minimum balance Charges ,
folio charges etc
 Vouchers have to initialled by same officer who
authorize on screen
 Numbers to be noted on the vouchers for system
generated transaction
 Over due instalment & int on advances
 Suspense/Nominal /sundry creditors/Sundry deposits

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 TDS verification , without PAN charge @20% systems
shall applied or not ,filing of return on time
 Service tax collection and payment proper data transfer
to H.O/Zonal
 Check for 15H/15G
 Account closing charges ,DD/PO charges, cheque return
charges
 Whether all mandatory report generated ,verify & signed
including Sunday & Holiday
 Transaction T.O in CC a/c
 Verification of system uploading of transaction during
downtime

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 Exceptional report –Changes of DP, Review of TOD , if
exceed reported to HO for approval
 Duplication of customers IDs
 Log Register for change in schemes IDs
 Substandard account restructured during the year
 Interest variation
 Interest applied but failed report for advance & deposit
 Advance pending for renewal (Limit Expired )
 Frequent over limit CC/OD
 Cash deposit /withdrawal beyond define limit
 GL Error report
 Failure of standing instruction

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 Debit in income head a/c or credit in expenditure head a/c
 Inactive a/c reactivated
 Overdue bills and bill returned
 Temporary OD above sanction limit/excess allowed
 Withdrawal against clearing
 Maturity record deleted
 Debit balance in deposit a/c.
 Advance disbursed by transferring to deposit a/c.
 Report on Large cash transaction/KYC
 Change in master : check mainly for 29-30 Sept 16,
30-31March 17, 1-3 April 17
 Account with negative balance
 Used Excel as audit tool

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 Generally there is separate software for classification
of NPA , some of the branch doing manually NPA
classification in Customer Master
 Exceptional report on change in NPA parameters
 Verify NPA report for March 16 ,Dec 16 & March 17
 Report of irregular advances

BaNCs 24 (TCS) : Mostly NPA report generated from

Same CBS systems e.g. CBI additional report generat in
ALL in One Program

Finacle (Infosys) : Mostly Finacle base program bank

generate NPA report from different software :
 BOB- Ascrome
 BOI – SASCAL
 Dena bank –D2K

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 Overdue stock/ book debts/QIS statement.
 Overdue reviews/ renewals of credit limits.
 Expired insurance/ under insurances of securities.
 Overdue renewal of loan documents /inspection of
securities
 TDRs where lien has been lifted.
 Loans against TDR where lien not marked.
 Cash balance above the cash retention limit.
 Divergent trends in income/ expenditure of the current
year may be analysed with the figures of the previous
year
 Window dressing

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 Suspense accounts are adjustment accounts in
which certain debit transactions & Sundry Deposits
certain credit transaction are temporarily posted &
authorization is pending for approval
 Check the nature of entries parked in such Accounts
 Check any movement in such old balances and
whether the same is genuine and has been properly
authorized by the competent authority
 Provision should be recommended against old
balances(beyond six months) unless recoverable

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