NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

INSPECTION DEPARTMENT

Right to Information Act, 2005 - Information Pertaining to ID

1. Particulars of Organisation, Functions and Duties

a. Organisation of Department

The Inspection Department is headed by a Chief General Manager. Besides, there are 03 General Managers, 7 Deputy General Managers,8 Asstt. General Managers, 5 Managers, 10 staff members in clerical & Steno typist cadre in the Department.

b. Objective

29 Regional Offices and 03 Training Establishments are the main operating units which function as per the policies and procedures laid down by Head Office. To carry on the activities effectively and in an efficient manner, certain human and material resources are placed at the disposal of these units. During the course of inspection, an attempt is being made to ascertain the deployment / utilisation of these resources vis-a-vis the overall performance.

The major objectives of inspection are as under :

1. To provide quick and direct feed back to the Management on performance of the ROs/SO/TEs by carrying out a critical appraisal of the performance of the constituent units on all aspects covering their operations, planning, development and regulatory work, human resource management, housekeeping, etc.
2. To examine the efficacy of the existing systems and procedures laid down, and the adherence thereto by the constituent units and to provide feedback and early warning signals for bringing about policy changes for making Systems and Procedures more effective.
3. To comment on management audit aspects like the role of the RO in furtherance of corporate goals, image building in the region, decision making process within ROs, tapping new business and organisational goals and
4. To carry out critical analysis of staff deployment in ROs (assessment of staff requirement which could form the basis of a detailed manpower assessment.

c. Scope

The Inspection Department carries out the Management and Performance Appraisal (inspection) of Regional offices, Sub-Office, Regional Training Centres and Training Establishments.

d. Periodicity

The Management and Performance Appraisal (inspection) is carried out once in a year of  ROs accounting for 80% business of the Bank and the remaining ROs and Training Establishments (TEs) are inspected once in two years. The periodicity, however, may be changed at the discretion of the Managing Director/Chairman.

e. Methodology

1. The annual programme of Management and Performance Appraisal (inspection) commencing from April each year is prepared by inspection wing of the Department in December of preceding year. The annual programme will be effective after its approval by MD or ED incharge.
2. The ROs / TEs may be intimated about the probable date of inspection at least one month in advance. However, if it becomes necessary or otherwise the inspection may be conducted even without intimation. The PIO/IO may devise suitable statements for collection of information etc., if he so desires.
3. Distribution of work amongst team members may be decided by PIO based on the circumstances in RO taking into account areas needing detailed scrutiny, etc.

2. Powers & Duties of Officers & Employees

The Inspection Team may comprise of one GM / DGM (i.e. PIO), 2 AGMs and 1 Manager/ Assistant Manager. The CGM / ED, ID may join the team towards the end of the Inspection at Regional Office to review the findings and discuss the findings with the Officer-in-Charge of the RO/TE.

1. The officers in Department have been vested with powers to inspect ROs and HO Departments
2. To issue inspection report to respective internal entities.
3. Follow-up with the entities for compliance on Inspection Report.
4. Present important findings / observations of inspection report to Management Committee and the Audit Committee of the Board.
5. Submit information regarding institutions making defaults in repayment and steps taken by the respective units to recover default.
6. Coordinating Risk Management Function
7. Overall monitoring of Outstanding entries in Sundry creditors & Sundry Advances.
8. Issue instructions pertaining to all the above items to entities under control.

3. Procedure followed in the decision making process, including channels of supervision and accountability

The Management Committee, Audit Committee of the Board and the Risk Management Committee of the Board guide the Department. Hierarchical decision making process is in vogue with required flexibility.

1. Periodicity has been fixed for inspection of the ROs and HO depts.
2. Inspection reports are forwarded to RO and HO Depts., immediately on completion of Inspection.
3. First Compliance reports are to be received within 30 days from the date of completion of Inspection and closure of inspection report in 90 days.
4. Monitoring returns in respect of defaults to NABARD by constituents are placed before higher management at fortnightly interval and presented to Risk management committees at regular interval.
5. Quarterly monitoring of Outstanding entries in nominal accounts and presenting the position to ED Committee/Audit Committee of the Board.

Quarterly monitoring of Concurrent Audit and presenting information to ACB.

4. Norms set for the discharge of functions

The Executive Director and the Chief General Manager decide the norms for the day-to-day functioning of the Department. Certain functions like conduct of inspections, getting compliance on the inspection findings, risk management in the Bank and risk forecasting functions are decided by the Management Committee, Audit Committee of the Board and the Risk Management Committee of the Board.

a) Norms for inspection

The inspections are conducted as per the policy laid down in this regard. The ROs accounting for 80% business of the Bank are inspected annually and the remaining ROs and Training Establishments (TEs) are inspected once in two years. At Head office level out of 26 Head Office Departments (HOD ), 08, HODs are inspected on regular basis and rest of the HOD are inspected once in two years.
For inspection and drafting of the report, the number of working days generally are allocated as under:
 

	Names of Unit	No. of officers including PIO	No. of days allocated for inspection of  each unit.
			Travel	Inspection	Finalisation, wrap-up and Issue of IR 3 3   3
I	Bigger ROs	4/3	2	15
II	Smaller ROs /TEs	2	2	6
III	ROs in North-Eastern Region other than Assam RO.	2	2	8

b) Drafting and Submission of Inspection Reports and other documents by PIO

1. Draft Inspection Report is prepared and discussed in the Wrap-up meeting with CGM-In-Charge of the RO by CGM, ID at the end of the inspection programme.
2. Immediately on return to headquarters, a note in the prescribed format indicating the required details about completion of inspection should be submitted to ID to enable it to prepare control sheet.
3. A note on major observations (in the prescribed format) for submission to ED/MD/ Chairman for their information and subsequent discussions in the Management Committee to be submitted within 1 or 2 days on return to headquarters.
4. In case the inspection team comes across any serious irregularity, financial irregularity or complaint, the PIO should submit a Special Note to ED/MD/Chairman to be submitted within 1 or 2 days on return to headquarters.
5. While drafting inspection report, the observations to be arranged in respect of each department in such a sequence that the persisting observations from the preceding inspection report should be followed by the current observations.
6. First File should contain draft inspection report duly cross referenced with Record of Findings alongwith a draft of the DO letter for forwarding the inspection report.
7. Second file should contain the Special Notes on the following aspects :

1 Complaint, grievances, etc. 2 Important issues to be referred to various HO Departments. 3 Critical evaluation of CAC in the prescribed formats alongwith required certificate in duplicate at the end. 4. Outstanding issues/persisting issues in respect of last compliance report. 5 Suggestions for improvement in various aspects of inspection - guidelines, composition of team, duration, periodicity, drafting period, etc. 6. Two floppies containing entire ROF and IR separately.

c) Submission of Compliance

On receipt of the inspection report, ROs / TEs should initiate necessary action for rectification of defects and implementation of suggestions pointed out/made therein and furnish their consolidated compliance to HO within a period of 30 days and in case of HO Departments within a period of 10 days from the date of receipt of the report. Delay, if any, in this regard is viewed seriously by HO.

d) Maintenance of Records

All the records in the Department are duly catalogued and indexed. The reports pertaining to the inspections of HO Departments and ROs are available both in hard copy as well as soft copy.

e) Procedures followed in decision making process

The decisions taken regarding conducting number of inspections, duration, mandays required, etc. are taken at the Management level. The findings of the inspections are discussed in the Management Committee Meeting and the Audit Committee of the Board. The functions of the Department are accountable at the Management Committee level as well as the Audit Committee of the Board level.

5. Rules, Regulations, Instruction Manuals and Records for discharge of functions

The Inspection Department issues circulars from time to time to the HO Departments and ROs on various issues pertaining to inspections, risk management in the Bank, concurrent audit to be conducted by external auditors, etc. The officers concerned are supplied with these instructions for discharging their functions.

6. Statement of categories of documents

The Inspection Department has entered into an Agreement with M/s.Shah and Gupta and Comany. Chartered Accountant for conducting concurrent audit of five HO Departments viz.., GAD, FD, AD, ICD (Co-Financing) and Premises Department. The Agreement contains the areas which are to be audited by the external auditors, remuneration to be paid, periodicity of the audit, etc. The Agreement is kept in the Department.

7. Arrangement for consultation with public

The functions of the Inspection Department pertain to the inspection of NABARD's HO Departments and ROs and its functions do not directly involve public and therefore, we do not have any arrangement for consultation with or representation of the members of the public in regard to formulation of the Department's policy or implementation thereof.

8. Access to Committees / Board's Meetings to the public

The Department is the Secretariet for two Committees viz., Audit Committee of the Board [ACB] and the Risk Management Committee of the Board [RMCB]. The Audit Committee of the Board has been constituted by the Board of Directors of NABARD comprising six members from the Board including Managing Director of NABARD. CGM, Inspection Department is the Secretary, ACB. The Risk Management Committee of the Board is headed by Chairman, NABARD. These Committees include select members of the Board from the RBI, Government of India, State Government, etc. and NABARD. The minutes of these meetings are confidential and they are not accessible to the public.

9. Details of information on electronic form

The findings of the inspections conducted in respect of HO Departments and ROs are available in an electronic form. However, it is not meant for the public and this information is only used for internal purpose within the Bank.