New system to identify discrepancies including '207 questions' method on table, latest news, Kerala news, Karuvanur bank fraud

One notable method being considered is the “207 questions” approach. These questions were formulated based on recent scams uncovered in the state and issues identified during audits. They aim to expose fraudulent activities such as false registrations, secret loans and deposits and irregularities in loan approval.

Recent scams have highlighted illicit practices employed by criminals, including fraudulent registrations aimed at influencing administrative elections within companies and banks. These poor practices often escape the scrutiny of traditional auditing methods. With these new measures, auditors will be responsible for verifying the authenticity of registrations and looking for duplicate entries under the same name.

Questions will also focus on examining lending activities. Auditors will check whether banks and cooperative societies only give loans or also accept deposits from their members. They will examine whether individuals received multiple loans, whether the loans were authorized by the administrative committee, and whether the loan guarantee conditions were met.

Strict scrutiny will be applied to transactions within banks and cooperative societies. The operations of primary cooperative banks are limited to their respective panchayats, and any loan given or deposit received from outside must be specifically documented. The valuation of mortgaged land will be subject to extensive review, with separate reports required for land mortgage transactions.