Para 6.3.4 — MSO (Audit)
Original Rule Text
6.3.4 The Inspecting staff are responsible to ensure that:
(i) the procedures followed by the banks transacting Government business meet all requirements of audit and that the accounts are properly maintained;
(ii) the scrolls and challans are being despatched in time and credits are being afforded to the Ministry, Department or Office of Government concerned without delay;
(iii) the specimen signatures of all drawing officers are properly recorded and are referred to by the bank officials before they make payments; and
(iv) the procedure followed in dealing with cheques, the encashment of which is subject to the limitations of assignments, letters of credit, etc., is in accordance with the prescribed rules.
What This Means
The inspecting audit staff must verify four critical aspects when auditing public sector banks handling government business: (1) procedures meet all audit requirements and accounts are properly maintained, (2) scrolls and challans are dispatched on time with credits given without delay, (3) specimen signatures of all drawing officers are properly recorded and verified before payments, and (4) cheques subject to assignment or letter of credit limitations are processed per prescribed rules.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Bank procedures must meet all audit requirements with proper account maintenance
- 2Scrolls and challans must be dispatched timely with prompt credit to government
- 3Specimen signatures of drawing officers must be properly recorded and verified before payment
- 4Cheque encashment subject to assignment/letter of credit limits must follow prescribed rules
Practical Example
During inspection of a Central Bank of India branch, the audit party finds that the bank has been encashing cheques for a department without verifying drawing officer signatures against the specimen register. In another case, they discover that government revenue challans are being dispatched to the AG's office with a 10-day delay instead of the prescribed 2-day timeline. Both findings are recorded as serious observations in the Inspection Report.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is timely dispatch of scrolls and challans important?▼
What are assignment and letter of credit limitations?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.