Bank Audit Special: 30 Instances which may necessitate issue of MOC:
Some of the key instances which may necessities issue of MOC may be as under:
- Wrong EMI calculations.
- Moratorium interest not added to principal for EMI calculation like edu loan.
- Incorrect feeding of Loan term, RoI, date of 1St EMI,
- Loan wrongly shown as std on 01.03.2020. like date of npa is before 01.03.2020.
- Interest on Interest/compound/penal not reversed for 6m.
- Income leakage like processing, penal, inspection
- Non provision of expenses
- Wrong calculations of intt subventions
- Wrong entitlement of intt subvention
- Interest subventions not given for 3+3 moratorium period.
- Excess DP allowed for 90 days. Goods Rates far excess in stock statements.
- Renewal expired and due for .180 days
- If account is npa on 01.03.2020, intt on intt will be debited back. Covid provision 5%+5% also to be reversed. Fresh npa provison reqd.
- FITL not paid till 31.03.2021
- CC intt ‘deferred’ not served in full on 01.09.2020
- Sub std is actually D1 /D2/D3/loss this year.
- Unrealized Income reversals
- Short term loans not converted to KCC. Thus lost intt subventions claims.
- Creditors not considered for paid stock and DP
- DP allowed on very old debtors
- Totalling errors in stock statements
- Last year MOC entries pending on 31.03.2021
- Tds non/wrong/short deductions
- Wrong depreciations
- Capital assets charged to PL
- WC reduced margins Due to covid not restored on 31.03.2021. Leading to excess DP.
- High crop loan sanction compare to thier RTC,
- Non agri loan product code given as agri loan product code
- Reschedulement of loan without proper sanction .
- Non Compliance with the Revenue Circular for recognising revenue like visit charges, Notice Charges, Standing Instructions Charges, etc
