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image  Systemic Improvements

  • Systemic Improvements
    • Credit Areas
      • Gold Loan
        • Gold Loan portfolio- In the recent past many instances of frauds have been reported under gold loan portfolio across banking industry. On the basis of our internal incidences & after diligent analysis of fraud cases reported by various banks, we have made various systemic improvements under our gold loan portfolio such as Enhanced Sue Diligence,Introduction of Super appraiser concept, installation of karatometer at various branches etc.

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          1. Enhanced Due Diligence of Gold Appraiser:

          • Introduction of Cooling Period: Initially, Gold appraiser to be appointed for 1 year and thereafter renewal for another 2 years based on annual performance review. Thereafter there should be a provision for cooling period of 1 year which may also be incorporated in agreement.
          • Generation of CIBIL: CIBIL Report is to be scrutinized to check credit history and gold loan availment. If he has availed gold loan from other bank where he is on panel as gold appraiser, then enhanced precautions to be taken.

          2. Empanelment a pool of gold appraiser:

          • Pool of gold appraiser to be empanelled. Further, unique code may be issued for every gold appraiser. Provision should be made in CBS for capturing the code of gold appraiser while opening / renewal of gold loan accounts.

          3. Concept of Super Appraiser:

          • Reputed gold appraisers should be appointed as Super Appraiser at Regional Office level for reappraisal of gold ornaments / jewellery. SOP devised by Regional Office (RO) for re appraisal of gold loan security by Super Appraiser in the presence of RO / Branch Official especially in branches where large numbers of gold loan accounts are sanctioned.

          4. Installation of Karatometer on pilot basis:

          • RABD may explore possibility of installation of Karatometer in those branches having large number of gold loan accounts

          5. Special Gold Loan Audit:

          • Periodical reappraisal of security under gold loan.

          6. Training to Staff of Gold Appraisal:

          • We propose, exploring of gold appraisal training program for branch staff to be implemented by the bank
    • Kyc
      • Letter of thanks
        • Letter of thanks on opening of SB/CD accounts: Letter of thanks is effective tool for KYC compliance, however it is not being used effectively leading to various frauds.So, to prevent KYC related frauds we have undertaken systemic improvement initiative in this area to make our KYC process more robust…

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          • In case of accounts opened through DMS, data of returned letter of thanks to be obtained from the post office and accounts is freezed for debit transaction.
          • In case of accounts opened at branch level including account opened through online mode a menu or flag is introduced in the existing system, where before allowing first debit transaction in newly opened Saving or Current account branches have to confirm whether letter of thanks have been delivered at customer’s/introducer’s address.
          • This process make the existing system of KYC more robust & fraudsters will be plugged for chances of impersonation.
    • KYE
    • Other Areas