Baroda Academy Reference Study Material for Promotion Exercise 2025-26 PDF

E Mr K U M VE E AR A K r V ER M...

E Mr K U M VE E AR A K r V ER M E RA Mr K U M V E A R VE AR A r M E R Mr UM ER E R M KU A Vr E Reference A K studyr V material for M Apromotion R exercise M R M U E E R E E R of Executives A K 2025-26 r V M A R V A R M U E E Mr K UM V E E A R A K r V A r M ER M E R M K U V E A R V E A R A r M E R R M U VE Mr K U M V E E A R A K r A r M ER M R M K U E R V EE A R R A M r V U M A E R E Mr K UM V E E A R A K rV A r M R M E R M K U V EE A R R V E A R A r M E R M U E Mr K U M V EE A R A K r V A r M ER M E R M K U V E A R V E A R A r M E R R M U VE Mr K U M V E BarodaE Academy A R A K r A r M ER M R M U E R V EE A R BankRof A KBaroda Mr V U M A E E R Mr K UM V E E A R A K r V A r M ER M E R For M internal U circulation K only V E AR V E A R A r M E R R M U VE Mr Do Not PrintKU M E E V required. Save A R A K r A unless extremely r M Paper, Save Trees E R and preserve M ER M K U Environment. V E A R V E A R A r M E R r R M U E M K UM V E E A R A K rV A is to supplement r the learning efforts M of the promotion R E aspirants. Topics M R This booklet E M K U V E A R V E incorporated are A R indicative in nature A and Apex Academy r advises the readers M to refer E R R M U E Mr to K UM SOPs,VCirculars, Book of Instructions, EE K etc. for r V Master Circulars, Policy guidelines, A R A updated information. A r M ER M This E R M K U E V the Bank (based R A on V E A R booklet is focusing mainly on the promotion A exam within r M E R R M U K and latest r VE Mr are supposedKtoUupdate M themselves previous trends) and should not be considered as an instruction manual. Employees E Eby reading Bank’s R A Vawareness related Anews. circulars, guidelines M A banking industry/ R M r other general U M E ER R EE R A K r V M A V A M U Mr U M E ER R K A K r V M A E RA E R M K U VE V E A R A r r M ER M M K U V E A R A M r U M E ER R K r V M A E RA M K U E A rV  E Mr K U M VE E AR A K r V ER M E RA Mr K U M V E A R VE AR A r M E R Mr UM ER M KU V E A K r VE AUDIT MAR R A M r E R M K U V EE A R R V E A R A r M E R M U E Mr Introduction toKAudit UM V E E A R A K r V and is M R Afor proper Central Internal Audit Division (CIAD), M rof the Bank’s is an independent U M vertical in the Bank’s E EandRforstructure formulating R E E of the Bank. The responsible functioning R K Internal Audit System (RBIA) AAudit Policy conforms r V M A the R V Audit Policy A Risk Based Internal R Audit Policy document M clearly enunciates U the policies E Mr Reserve Bank ofKIndia, of the Bank in UMGovernment ofVIndia, respect of Internal Audit E Board and Audit Committee functions. E R to the guidelines A Kissued by the r VE Aindustry. of the Board on Internal Audit M from time toA R time and best practices M r adopted in the financial U M E ER R standards andK EE sets out theAprinciples, The policy V Rframework R A approach for Internal M r VAudit at the Bank.MItAputs U E R E Mr assess M of the Internal in place a comprehensive to ensure that the internal audit function will independently Econtrol, Risk Management, GovernanceK U the effectiveness K V E A R R A systems and Mr V RA that the systems,Mpolicies processes set by the Bank. r U M EE to by the operating R CIAD E ensures Eand standards of control R K and procedures of the Bank areV A pursuing desiredMlevel adhered r of growth. UM A R V units A R are not diluted while E E Mr A sound internalKaudit UMfunction plays anVE E A R to the effectiveness important role in contributing A Kof the internal r V Aof risk control system. The audit function randshould provide high M quality counsel toEmanagement R on the M E R effectiveness management M K internal controls U including regulatoryEcompliance by the bank. V A R TheE V Bank has implementedR A a Risk Based Internal A Audit (RBIA) System r in line with the M guidelines issued E R R M U VE Mr “Internal AuditKFunctionUM serves theVrole EEof the last line inAthe K by Reserve Bank of India. R 3 lines of defenceAmodel.” r A r M ER M R M 1.EThe first line of defence being the Operations U K / Business Units E Vthemselves who M R A the V E A R A r have E R responsibility to prevent the risk at R the source. M U E Mr 2. The Bank. K secondM U line of defenceVEbeing E the ComplianceRand Risk Management A A K of the r V Function A r plays the vital roleM E R M 3. Audit Eagainst M being third line of defence U R risks and assessing the risk profile ofKthe Bank itself. VE in the Bank in terms of safeguarding the Bank AR V E A R A r M E R R M U K on the r VE Mr The objectives U M of audit E E to the board of directors Kand effectivenessrofVa bank’s internal control, R A risk management,R A governance systems M To provide independent assurance & senior management R A quality M U M E E R E and processes, thereby helping the boardK& senior management V in safeguarding theA E V and A R A r M Bank E R r its reputation. R M U E M have K UM standingofandthe To remain independent V E E activities, audited R which requires the internal audit A A K auditors function to rV sufficient A out their assignments authority within r with objectivity. UM the bank, thereby enabling R internal to M ER To ensure appropriateM carry K V EE and experience A Rof R V E each internal auditor A R professional competence, including the knowledge A collectively, M for rthe effectiveness of the Mbank’s E R and of internal auditors U E Mr internal K U Mfunction. audit V E Ea suitable risk basedRinternal audit strategy A A K r V To define, design and implement A the underlying risks, rorganizational structure. M E R commensurate M R with M E To undertake an independent risk assessment U K forrisks the purpose V E R A the V E A R A r of formulating the risk-based M E R audit plan keeping in view the R inherent business of M an activity / business U profile and VE Mr effectiveness U Mof the control systems K with risk assessment. V E E for monitoring A R the inherent risks of the business A Kresources activity. r To enable A risk identification, r prioritisation of audit M areas and allocation E Rof audit in M R accordance M E To ensure every activity (including outsourced U E K activities and riskVmanagement function) R Aand E every entity ofA theRbank should fall within A the overall scope of rthe internal audit function. M r V To ensure adequate M coverageEofEmatters R of regulatory interest M within the audit Kplan. U M U R To enable ToA K offering of suggestions r V risksforand A risks. mitigating current play anM E RAbank from various E Rrisks. M anticipate areas of potential K U important role in protecting VE E To lay greater A V To have effective R A role in mitigatingrrisks. r M internal auditEasEaRdeterrent and preventive emphasis on internal auditor’s M mechanism for frauds. M K U V A R A M r U M E ER R K r V M A E RA M K U E A rV  E Mr K U M VE E AR A K r V ER M E RA Mr K U M V E A R VE AR A r M E R Mr UM ER M KU V E A K VE M AR R A To follow up for rectification of irregularities pointed out in the Audit Reports for corrective r M r E R M U EE action and get confirmations from Controllers regarding rectification of irregularities. K V A R R V E A R A r To assess the effectiveness of internal control and report the level of compliance in respect of M E R M internal instructions, regulatory and statutory compliance to the Management. U E Mr Organization Structure K UM V E E A R A K r V A independently M andr is situated at Head M E R through Zonal M R CIAD functions EAudit Divisions located K U Office, Baroda and operates V E A R Internal V E A R at Zonal Head Quarters. A of its various r M E R R M U Kof compliance r VE Mr periodically andKcoordinates UM with functional Eheads and controlling CIAD (The Head, Internal Audit) reports the progress activities to Executive Director E V of Annual Financial R A Inspection of RBI and offices for submissionA A and RC (Rectification certificate) inrrespect M ER LFAR (Long form M R M K U E R EEInternal Audit Divisions V A audit report). V A R carry out inspection A r M E R R M U E Mr by M of the Board andEE Zonal of branches / offices as per the periodicity decided the Audit CommitteeU examine adherence R A to such systems of internal K control and r V K risk management including variousV A(AML) etc. r aspects such asUM A Know Your Customer R (KYC)/ Anti- Money M Laundering R M E E R E Efrom onsite inspection R K V r CentralizedU Aoff-site surveillanceMthrough M A R V Apart A R CIAD also carries out Exceptional E E Mr Monitoring Unit.KUM V EE A R A K r V Internal Audit execution frameworkr AAudit: M offices such as E ER M R Audit of theM E Data Centre, Trade Centralized K U centralized and specialized V the supervisionMofACIAD Loan Processing Centres, R V E Treasury, A R Forex Back Office,Aetc., will be conductedrunder E R R M U VE Mr Decentralized KAudit: UMInternal Audit V E K through respective ZIADs. E of Branches, City BackA R A r etc., will R A be conducted by ZIAD M r under the supervision U M Offices, Regional R Zonal Offices, M EOffices, E K of CIAD. V E A R V E A R A is introducing M r Audit system.UUnder M this E R R E Mr system, Off-site Audit / Continuous Auditing: The Bank Off-site K U/M Offsite Audit Team under CIAD V E Ewill monitor the R A K transactions at both centralized A and / Mr V A for rectificationMofr the same. The branches decentralized units offices / functions, identify exceptions and communicate the M / units / officesEwillEhaveR to communicate same to the units R offices / functions E K U V AR V E the remediation A R to Offsite Audit Team within defined timelines. A r Reports on such exceptional transactions M E R R M U VE Mr Internal Audit Function will also be provided to the concurrent and internal auditor. U Mexecute followingEtypes E of Audit: R K r K types of inspections/ Vaudits are undertaken Aby Internal Audit Division, A M A At present various R M r U M E ER details of which R are given E E below: R A K r V M A R r V M A R M U E E i Risk Based Internal M ii Internal Audit Kof U Audit of Branches E E R A K rV r V M A R M RA Audit of Bank’sM Specific Operations/ Activities a.EInternal K U V EE A R R V Eb. Revenue Audit for A R Treasury A Audit is notM r out) M E R Branches (where Concurrent carried U E Mr c. FEMA Audit M K U“B”pertaining E to Forex business V E (to be carried out at Trade Forex K A R A Back Office & r V Authorised Category Branches) A Audit of Retail M r / SMS/ SMELF /UCentralize M Loan Processing ER Centres/ CAMPs/ M E R d. Internal CPC K V E A R V E Supply Chain e. Internal Audit ofA R /SAMANVAY Cell etc. A r M E R Currency Chests R M U VE Mr f. HR U Min case of RuralE&ESemi Urban Branches) Audit (only K Apex Academyr Gandhinagar V A R KCity, DRoffice & HR Audit of Administrative A r (i.e. Region, A Zone, Zonal Academy, OA Business New Delhi)ER Departments & GovtM BCC, HO,NSSC Gift Site M R Hyderabad, M U E R V E g.ELead Bank A R4 (Along with RBIA)A K r V M A h. BCSBI Audit/EASE ERBusiness Audit R M U Mr i.j. Pension U M Audit / Government Payment KAudit of Retail Liability KYC / AML / CFT Audits E VBack Offices (RLBO) Aand City Back OfficesR(CBO) A K A R Central ProcessingM k. Internal r U M E E l. EHR R Centre A K r VE V A M M r U M E ER R A K r V M A ER M K U E R r V M A E RA M K U E A rV  E Mr K U M VE E AR A K r V ER M E RA Mr K U M V E A R VE AR A r M E R Mr UM ER M KU V E K VE AR m. Snap & System Audit (Only for new Branches opened & to be done within 6 months from date A r M R A M r E R M U EE of opening. For High Risk Branches the same will be carried out at Regional Office level once K V A R R V E in six months). A R A r M E R M n. Internal Audit of Contact Centres / Baroda Financial Solutions Ltd. - Main & Local Area Offices/ U E Mr UM BOB Capital Markets Ltd./ IFSCBU etc. K V E E A R A K r V o. Internal Audit of National Shared Services at Gandhinagar. A r M ER M R M U p. Audit of Outsourced Activities (as & when advised by O & S Dept in compliance with the E K V E A R V E Outsourcing Policy) A R A r M E R R q. Any such other activities as deemed fit from time to time M U VE Mr K U M V E E A R A K r iii. Internal A Audit of r Administrative Offices: Regional and Zonal M ER M E R M a. Internal Audit of K U E Offices / Various identified Offices e.g.V Facility Management, A R V E A R A Departments of Head Office & Corporate r M Office E R R M U E Mr M and Expenditure Administration, Risk Management, Compliance, CBO-DPO, Fintech etc. E Audit of Office Administration DepartmentsKat K b.UIncome V E A R AuditR A Baroda Mr V R A Academies/MBSVS/ r FLCC etc. UM CO/ HO/ Zonal Office/ Regional Offices / Zonal Internal EE Divisions/ R E E R A K r V M A R V c. A Audit of High Value Purchases/ R Purchase Authorizations. M U E E Mr M EE K d. U Audit of Central Stationery Cells R A r V K V A M R A M r: U M E ER R E E iv Information System Audit a. IS AuditR A K Offices r V M A R V A of branches and Administrative R M U E Mr b. c.U ISM Audit of Software E Applications E R A K r VE Kd. IS Audit of Digitalr Application IS Audit of Specialized V A Integrated Treasury Branch and other offices M R A M U M E ER R EEv Management Audit R of Controlling Offices: A K r V M A R V A R M U E E Mr K a. M / Subsidiaries/EAssociates UOffice Management Audit V of EZonal / Regional R Offices, A Departments Sponsored RRBs. A of K Corporate / Head r V A Audit Division will r (Domestic)/ M ER Audit function.RA M R M U Eplan will be made byRCIAD for conductionAof KManagement Audit.rCIAD E V will identify Executives A / Central V E Internal A co-ordinate and responsible for the Management M E R yearly R M U VE Mr Officials under whose K U M E leadership the Management V EreportingAudit R will be conducted. The Management A A K Audit r Plan will be finalized A in consultation r with the Executive M Director. EnotR M R E Business, Management M U K out by appropriater V E R A by In case V E of Subsidiaries, A R Associates & Joint Ventures A having Business model related to M normal E R r Banking Audit is to be R carried M U External Firm, as decided E M All the above stated K UMAudits describedVEherein respective Board of Subsidiaries, Associates E above are carried & Joint Venture. A R out on the principle A K rV AFramework/ Methodology. r M R of Risk Based M R M U EE R Internal Audit E ERBI guidelines as amended R K A as well as directions V r given by ACE/ ACB A Mis to be R V A R M U E E Mr taken into considerationUM while deciding Ecoverage of the Risk K in the r V The from time to time K V E the A R A Based Internal Audit systems Bank. A r M ER M R E Internal AuditR M K U V E A R Risk V E Based A A r M E R R M U VE Mr the Bank’s interest M (RBIA) is an examination E of Internal Controls Ktoforsafeguard Risk Based Internal Audit in place at the Bank U and objectives. The E Kthat the internal auditr V Bank has put in place aR A assess the effectiveness comprehensive framework A Internal r Audit to ensureA M function will independently ER of the internal M R M systems andK U E R EE V A control, risk management, governance processes, created by the business units. This also V in the long run ensures quality A R assurance on these A systems and processes. r M ER M U Mr The Audit system U M E R K  A K in the banks has been V concentrating onMAand reliability of accounting Transaction testing onr sample basis, accuracy E RA records and E R financial reports. M K U VE E V  Testing the A R A r r M integrity, reliability and E M Rtimeliness of control reports M  Review K U of quality of assets V E A R A M r U M E ER R K r V M A E RA M K U E A rV  E Mr K U M VE E AR A K r V ER M E RA Mr K U M V E A R VE AR A r M E R Mr UM ER M KU V E  K r VE Adherence to legal and regulatory requirements A M AR R A M r E  R M Compliance of system and procedures in bank K U V EE A R R V E A R A r M E R M U E Mr K UM V E E A R A K r V ABased Internal Audit r or e-Audit UM ER M E (e-RBIA) e-Risk R M K E V Risk Based Internal A R V E A R A r M E R R M U K has been r VE Mr ofimplemented In the journey of Automation and transformation our Bank has implemented Audit Universal Branches U M on the online Platform. E E At present, Automated R system of e-RBIA inK V the Bank. MA R A M R A M r all BOB Branches across U E E R E of compliance by R Branches on IT Platform K A The flow E A will be as under: r V M E R V A R M U E Mr M E K rV a. As soon as the Report is vetted by ZIAD report will be available to Audltee Unit/RO/ZO for necessaryU E R A K compliance and its closure. V A Head may useMhisr HRNES User ID and b. Branch will login to AAS project.(URL is A https://aasapp001.bankofbaroda.co.in) R Mpassword for loginEinEthe System. He may M E R c. Branch K U V A R V Ed. After attending A delegate the R action to other officers also A officer or Branch for compliance or he r head by sell, it willUM may do the same by self. E R R M E Mr Mfor its verification E (ToE K V 100% issues by the respective go to the K Branch Head U V comply the four EyeR A Concept.) A r A in the compliance e. Region / Zone to identify the r user M RM/DRM/DZH at their level including E&RZH for making them M R M U K compliance &rclosure E R f. ERegion/Zone to follow V of the Audit reports. A convenient process. V E A R up the Branches A for 100% M E R R M U VE Mr Actions at various M E K g. In the event of any operational / Technical query, Branches may call Regional IT helpdesk. U K levels V E A R A r A r M ER M R M U K Roles and Responsibility E R V EE S.No. A R Name of Office R A M r V U M A E R E Mr 1. Branch M K U V E E is the action owner Branch A R for compliance and K A closure. r V 2. A Office/ZonalMr operation Regional M a track on issues and keep ERallreported for future M E R Office/ Functional Head compliance till U Kreports are attended Vby the Branch latestMbyA30R its closure and ensure E the issues and V E A R A irregularities r E R R M U VE Mr M E K Days/45 Days as the case may be. K U V E A R A r 3. R A Zonal Internal Audit M r Will oversee U theM overall E ERa track on issuesR M compliance, Keep E Division R reported forKfuture compliance including V ATRs till its closure. A R V E A R A M r U M E r E M K UM V E E A R A K r V A Benefits of e-RBIA: r M E R M E R M K U V E A Rof V E system & procedures. 1. Early rectification A R of reported irregularities A like serious r irregularities and non- M compliance E R R M U E Mr 2. Rectification K U M E Eon real time basis toRprotect Bank's interest. V done on spot MA of serious irregularities A KIt will improve r V A r the quality of compliance actually EstaffRin respect of areas M R M if any observed,U E R E Eof non-adhering toRBanks extant guidelines 3. Identification of Control Gaps, A K and sensitization of the r V M A R V A R & procedures. M U E Mr 4. Issue tracking U M through MIS report E E available on Dash Board. R Better analysis of A K risk vertically and r VE K the Banks compliance horizontally. V culture and reduce A the physical movement M 5. It will R A improve office to another. M r U M E ER of papers from R E6.EIt will give a trueApicture one R to the controllingAoffices K / Business owners r Vabout risk of theirM A V ER M Saving of resources portfolio. Uat various Mr M in the systemEand K 7. Report is available can be accessed any time U R K V A RA levels. A Rof e RBIA are givenM r M Uand Closure at Branch E E Workflow E R as under Compliance A K r VE level in System r V Completion of Inspection M A the draft reportRwill be sent to ZIAD byMInternal Auditor/s for finalization. EEa copy to ZO & RO. After M ZIAD will submitKthe UReport to BranchVwith A R E RA Mr K UM r VE M AR RA M U E E A K rV  E Mr K U M VE E AR A K r V ER M E RA Mr K U M V E A R VE AR A r M E R Mr UM ER M KU V E A K r VE M AR R A 1. 1st Compliance Report Within -15- days (other branches) & -30- days (branches with fund based M r R M Credit portfolio of Rs. 100.00 Crs and above). E K U V EE A R R V E A R A r 2. Final Compliance Report Within -30- days (other branches) & -45- days (branches with fund based M E R Credit portfolio of Rs. 100.00 Crs and above) M U E Mr K UM V E E R 3. Synopsis to be replied by branch within (15 days) from the date of receipt of Audit Report. A A K r V 4. Synopsis reply received at ZIAD / RO / ZO. A r M ER M R M U E 5. Reply on synopsis is discussed in Sub Committee meeting & further compliance sought whenever E K V A R V E A R needed raised through ATR. A r M E R R M 6. Further compliance received through ATR & discussed in forth coming ZACM,until all actions are U VE Mr complied. K U M V E E A R A K r A r M ER 7. Entire report is attended by Auditee units & sent to respective controlling authority along with CRC. M R M U E 8. In case of Qualified Rectification Certificate given by Auditee unit. Branches to submit RC within K R V EE A R 30 days from the date of QRC R A M r V U M A E R 9. Open issue given under QRC will be discussed in QRC Committee till closure (discussed in E Mr UM subcommittee) K V E E A R A K rV A r M R 10. Controlling authority (RO) will view the compliance and then recommend for closure and M R M recommendation letter will be send to ZIAD. E K U V EE A R R V E A R A r 11. Final Audit Compliance cum Closure Certificate to be submitted within 30 days from the date of M E Submission of CRC. R M U E Mr K U M V EE A R A K r V A e-RBIA: Automation To learn about r Module: ReferUtoMCircular No. HO:BR:114:159 ER dt. M E R M K V E A R V 27.07.2022 E A R A r M E R R M U VE Mr The scope U Maudit will broadly cover of internal K E E adequacy A V of ofthethespecific R A K and effectiveness ofRthe internal control M r R A Examination system and the r and evaluation M functioning M U control procedures. internal E E R E Preparation of Risk Audit Matrix based K V A R V E A R A r on intensity / magnitude Mand risk and frequency of risk. E R of the risk M U E Mr UofMmanagement Review of the application and effectiveness management procedures assessment methodologies. E E R A K r V K V A M Asystems and electronic rBanking services. UM ER Review and financial information systems including electronic information R M E Review of theRsystem establishedA toKensure compliance E AR Vwith legal and regulatory V E A r M E R R the implementation ofM U VE Mr Mreliability and timeliness requirement, code of conduct and policies and procedures. Testing U of E E of the regulatoryRreporting. A K r K appropriaterfeedback Furnishing V of theto Controller(s) M Aregarding the healthRof the auditee units. M RA E M Examination and evaluation K U in carrying adequacy and EEthe Bank’s system effectiveness of outV A Rof R VE While Rthe coverage of everyAactivity under audit, adequate internal control and the quality of performance A r M assigned responsibilities coverage ofU E r R M E UM and control asVprescribed ensuring embedded M compliance EE by the regulatory K also to r V R / statutory/ GOIAauthorities be K A R and personnel for M RA taken care of. M The Internal Audit will rhave right to accessUbank’sM records, information E E R E E R conduct of internal audit. A K r V M A R V A R M U E E Mr Risk UM Process VEfollowing Based Internal Audit K E