• +91 97110 17408
  • sales@finakon.in
Request a Demo
Free Trial
Request a Demo
Free Trial
BaaS from Finakon

Banking Sector

The banking sector in India plays a critical role in the country’s economic growth, acting as the backbone of financial stability and economic progress. 

Given the significance of the sector, maintaining transparency, accountability, and regulatory compliance is paramount. This is achieved through stringent audit and inspection processes, ensuring that banks adhere to legal, financial, and operational standards.

Types of Audit in Banks

Statutory Audit

Mandated by the Banking Regulation Act, statutory audits ensure that a bank’s financial statements provide a true and fair view of its financial health.

These are conducted by external auditors appointed as per RBI guidelines and cover areas such as balance sheet verification, income and expenditure accuracy, and compliance with tax laws.

Internal Audit

An ongoing process conducted by the bank’s internal team to assess risk management, internal controls, and adherence to policies.

Internal audits focus on operational efficiency, fraud detection, and improving process effectiveness.

Concurrent Audit

A real-time audit mechanism that operates parallel to daily banking transactions.

Primarily focused on high-risk areas such as loan disbursements, forex transactions, and compliance with Know Your Customer (KYC) norms.

Risk-Based Internal
Audit (RBIA)

Introduced to align audit practices with the bank's risk management systems.

It prioritizes high-risk areas like asset classification, capital adequacy, and credit risk.

Information Systems
Audit

With increasing reliance on digital banking, this audit ensures the robustness and security of IT systems.

Focuses on cybersecurity, data integrity, and compliance with digital banking regulations.

Audit and inspection are vital pillars of the Indian banking sector, ensuring the system’s resilience, credibility, and trustworthiness. With advancements in technology and a proactive regulatory framework, Indian banks are well-equipped to meet evolving challenges.

Strengthening audit mechanisms further can contribute significantly to the stability and growth of the financial ecosystem in India. Finakon’s BaaS® is the right digital audit partner in this journey.

Get in Touch

Want to experience the real-time digital audit solution for your bank or NBFC? Get in touch with us today. 

Location

Level 4, Sanali Spazio, Inorbit Mall Road, Madhapur, Hyderabad-500 081, Telangana, India.

Help & Support

+91 9849 805 034

Email Address

sales@finakon.com