Concurrent Audit Services —
Real-Time Transaction Monitoring, RBI-Compliant Branch Audit & NBFC Coverage
Most audits look at what has already happened. A concurrent audit looks at what is happening — right now, on the same day transactions occur. Errors identified today can be corrected today. Errors discovered in the next statutory audit cycle — months later — have compounded, spawned derived entries, and may have become impossible to unwind cleanly.
Overview
Today's Transactions. Today's Audit.
N D Savla & Associates provides concurrent audit services for public sector banks, private banks, cooperative banks, NBFCs, and financial institutions across India — conducted in compliance with RBI guidelines and each bank's board-approved concurrent audit policy.
We also provide concurrent audit services for large non-banking businesses — covering treasury, accounts payable, procurement, and revenue collection departments where daily transaction volumes require continuous oversight rather than periodic review. Our concurrent audit services combine on-site daily examination with structured weekly and monthly reporting — providing the branch management, regional audit committee, and statutory auditors with a continuous and documented picture of compliance.
The Service
What Is a Concurrent Audit & Why Does It Matter?
Concurrent audit services involve the examination of transactions simultaneously with — or as close as possible to — the moment of occurrence. Unlike internal audit, which reviews past activity periodically, concurrent audit services operate in the current period — examining today's transactions today. The ICAI's Manual on Concurrent Audit of Banks describes it as part of the bank's early warning system.
In banking, concurrent audit services serve as the second line of defence between the transaction and the statutory audit. The CBS (Core Banking System) creates the first layer of automated controls. Concurrent audit services examine whether those controls are functioning correctly and whether transactions that passed the system are correctly processed, correctly documented, and compliant with applicable RBI guidelines and internal policies.
Bank Branch Coverage
Coverage Areas, Checks & Reporting Frequency
Bank branch concurrent audit services cover all transaction departments of the branch. The table below maps each coverage area to the specific checks performed, the risk it addresses, and the reporting frequency.
| Coverage Area | Key Checks Performed | Risk Addressed | Reporting |
|---|---|---|---|
| Area 1 Loans & Advances | Documentation completeness at disbursement (sanction letter, title deeds, insurance, valuation reports). End-use verification. Correct application of interest rate. Early NPA indicators — irregularity in repayments, overdue EMIs, excess drawings. | Early detection of accounts slipping toward NPA status. Prevention of undocumented or unauthorised disbursements. Correct interest income recorded in CBS. | Daily audit memo + Weekly summary |
| Area 2 Income Leakage & Charges | Processing fees, documentation charges, inspection fees, LC/BG commission verified against sanction terms and tariff schedule. Interest calculations in CBS verified for correct rate. Waived charges checked for authorisation. | Revenue loss from unauthorised waivers. Interest computation errors reducing bank income. Charges collected but not posted to income account — potential misappropriation. | Daily (high-value) + Weekly summary |
| Area 3 Deposits & Account Opening | KYC compliance for new account openings and modifications. Interest paid on FDs and savings accounts verified for correct rate. Premature withdrawal processing verified. Dormant account reactivation compliance. | RBI penalty exposure from KYC non-compliance. Incorrect interest payment on deposits increasing the bank's cost. Dormant account fraud prevention. | Within 2–3 days + Monthly summary |
| Area 4 Cash & Cash Equivalent | Cash verified against CBS teller balance daily. Currency chest operations checked for compliance with RBI norms. ATM cash reconciliation. Large cash transactions verified for reporting under PMLA threshold. | Teller fraud — cash shortages concealed by manipulation. Currency chest compliance — RBI action risk. AML compliance — large cash transactions not reported. | Daily cash verify + Monthly summary |
| Area 5 Foreign Exchange Operations | Exchange rate applied verified against RBI reference rate and bank's spread policy. FEMA compliance for forex transactions. LC and forward contract processing compliance. Foreign remittance documentation under FEMA. | FEMA violation from incorrect classification of forex transactions. Income leakage from wrong rate application. Regulatory risk from unreported transactions. | Daily (forex-active) or Weekly |
| Area 6 Government Business & Priority Sector | Priority sector lending targets tracked — agriculture, MSME, affordable housing, weaker sections. Subsidy disbursement compliance. SHG linkage documentation. PMJDY and Jan Dhan scheme compliance. | RBI fine and adverse bank rating from priority sector non-compliance. Subsidy misrouting risk. PMJDY compliance failure. | Monthly tracking + at disbursement |
| Area 7 Internal & Suspense Accounts | All internal account entries verified — entries outstanding for more than prescribed period flagged. Sundry creditors and debtors in branch cleared. Inter-branch reconciliation entries monitored. Suspense items reviewed for ageing and nature. | Fraud concealment through internal accounts — one of the most common fraud mechanisms in banking. Aged entries may represent misappropriated funds. | Daily (above threshold) + Weekly summary |
RBI Framework
RBI Guidelines for Bank Concurrent Audit
The RBI master circular on internal audit and inspection requires banks to implement concurrent audit services as a mandatory real-time control mechanism for branches above the prescribed business threshold. The concurrent audit serves as a supplementary check to the bank's internal audit department — providing daily coverage that internal audit's periodic visits cannot deliver.
Branch Coverage & Selection
Banks must ensure that branches with advances plus deposits above Rs. 20 crore (or such threshold as the bank's board determines) are covered under concurrent audit services. Large branches, very large branches, specialised branches, forex-active branches, and regional offices are typically covered.
The bank's board-approved concurrent audit policy specifies the coverage, the reporting format, the escalation procedure for uncorrected irregularities, and CA firm empanelment requirements. Our firm is empanelled with multiple public sector and private sector banks for concurrent audit assignments.
Report Format & Escalation
Concurrent audit services generate three levels of reporting. Audit memos are issued immediately to the branch manager for any irregularity requiring same-day correction. Weekly reports consolidate all findings and the status of corrections. Monthly reports provide a comprehensive summary — income leakage, KYC, NPA early warning, and forex compliance status.
Uncorrected irregularities must be escalated to the regional audit committee and, for significant matters, to the bank's chief internal auditor.
NBFC Coverage
Concurrent Audit Services for NBFCs & Financial Institutions
NBFCs regulated by RBI — particularly those with asset size above Rs. 500 crore or those in the upper and middle layer under the revised NBFC regulatory framework — are required to maintain a robust internal audit function. Concurrent audit services provide the real-time transaction monitoring layer that supports this framework.
What NBFC Concurrent Audit Services Cover
NBFC concurrent audit services focus on the loan origination and monitoring cycle — verifying that sanction terms are correctly implemented at disbursement, that documentation is complete, that the correct interest rate is applied in the loan management system, and that collections and recoveries are correctly recorded.
Additionally, concurrent audit services for NBFCs cover treasury operations — verifying that investments are within board-approved limits, that liquidity ratios are maintained, and that ALM (Asset Liability Management) compliance is not breached. Furthermore, the concurrent audit reviews compliance with the NBFC's specific RBI regulatory requirements — Fair Practices Code, KYC/AML compliance, and prudential norms for income recognition and asset classification.
Beyond Banking
Concurrent Audit Services for Non-Banking Businesses
Large businesses outside the banking sector increasingly engage concurrent audit services — not because of a regulatory mandate, but because the transaction volumes in certain departments exceed what periodic internal audit can adequately cover.
Treasury & Financial Transaction Monitoring
Companies with active treasury functions — corporate bond investments, intercompany loans, forex hedges, and money market placements — benefit from concurrent audit services that verify each transaction against the board-approved treasury policy on the day of execution.
This prevents policy breaches from accumulating and provides the CFO and audit committee with real-time assurance that the treasury is operating within its mandate. Concurrent audit services for treasury also verify that hedge accounting documentation under Ind AS 109 is completed at the time of hedge designation — not retrospectively.
Accounts Payable & Procurement Monitoring
High-volume AP departments — processing hundreds of vendor invoices daily — are vulnerable to duplicate payments, payments without matching POs, payments above the delegation of authority level, and vendor fraud. Concurrent audit services review invoices and payment runs on a daily or weekly basis before payments are released.
This is particularly valuable for businesses that have recently reengineered their procurement process — see our Business Process Reengineering service — and want to verify that the new controls are operating in practice.
The Distinction
Concurrent Audit vs Internal Audit — Side by Side
The relationship between concurrent audit services and internal audit is complementary — not competitive. Both have a role; understanding the difference helps the audit committee deploy each correctly.
Related Audit Services
Related Audit & Compliance Services
Our concurrent audit services connect to a complete set of audit and risk management services. Combined engagements give the audit committee continuous, end-to-end coverage from transaction to year-end.
Internal Audit
Periodic independent review of processes and controls — the concurrent audit output feeds directly into the internal audit's annual risk assessment and findings consolidation.
Statutory Audit (Under Companies Act)
Statutory auditors rely on concurrent audit work for banks and large businesses to reduce year-end substantive testing.
Stock Audit Services
Bank borrower stock audit — used alongside concurrent audit services for CC and OD accounts to verify collateral between concurrent audit visits.
Anti-Bribery & Corruption Risk Assessment
Concurrent audit findings in procurement and treasury frequently identify patterns consistent with bribery exposure — ABAC assessment addresses the systemic risk.
Risk Control Matrix
Maps the controls that concurrent audit services are testing — aligning the daily audit programme with the formal risk and control framework.
White Collar Investigation
Where concurrent audit findings indicate fraud or misappropriation, a structured internal investigation establishes the facts and quantifies the loss.
SOP Implementation
Converts concurrent audit findings into process improvements — the SOPs that prevent recurring irregularities from appearing in subsequent reports.
Corporate Governance
Governance framework for banks and NBFCs — ensures the board and audit committee receive concurrent audit reports in a structured format for appropriate oversight.
Frequently Asked Questions
Concurrent Audit Services — FAQs
Don't Wait for the Statutory Audit to Find What Happened Yesterday. Know Today.
Bank branch concurrent audit (RBI-compliant) · Daily transaction verification · Income leakage identification · NPA early warning · KYC/AML compliance · NBFC concurrent audit · Treasury monitoring · Accounts payable oversight.
Empanelled with leading banks. Trusted by NBFCs and corporates.
End-to-end concurrent audit services — RBI-compliant bank branch audit · loans, deposits, cash, forex, and priority sector coverage · daily audit memos · weekly and monthly reporting · income leakage identification · NPA early warning · KYC/AML compliance · NBFC loan origination and treasury audit · corporate treasury and accounts payable monitoring. Empanelled with multiple public sector and private sector banks for concurrent audit assignments across India.
Talk to Our Team
