Bank of Rajasthan – 9 march 2010 – Special Audit

Reportedly, the RBI or Reserve Bank of India has ordered a special audit of the accounts of Bank of Rajasthan after SEBI statement that the promoters of the "bank fraudulently have increased their share of the entity." Reports from Sify in the case of Bank of Rajasthan, stock prices of Bor has dropped 12.28% to a low of 58.60 on BSE.

A week ago, Bor made headlines after RBI imposed a fine of Rs 25 Lakh in the bank after a series of violations. Many of the operations of the Bank’s ownership, the fight against money laundering, etc. was started by the RBI as "suspicious" at this time. Following this and the new case SEBI RBI, the RBI has felt the need for a special audit in the Bank.

Bor, unlike other commercial banks, which have different credit committees, depending on loan size, has a single committee for approving loans. In most local banks may have the power to sanction loans up to Rs 25 rupees, while loans of Rs 25-50 crore are approved by the credit committee at headquarters and loans above 50 crore rupees to go to the management fee.

In Bor, the RBI, sources said the central bank fears that directors play an important role throughout the credit delivery mechanism.

Heskins Deloitte & Sells has been asked to conduct an audit of the delegation of the "internal sanctioning power followed by the bank."

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