A number of steps have been taken and systems have been introduced to ensure sound banking system and to check irregularities in the banking activities including in the rural areas, as per the provisions of various Acts/Rules/Guidelines. The details of some of these are given below:

• Supervision of banks under Banking Regulation Act, 1949 (BR Act, 1949)
• Statutory Audit of banks as per the provisions of BR Act, 1949
• Setting up of Audit Committee in banks < br>
• Strengthening the Internal Checks and Control System and setting up of Vigilance Cell, Risk Management Committee, Investment Committee etc, in banks
• Banking Ombudsman Scheme, as a part of Grievance Redressal Mechanism, introduced by Reserve Bank of India.

Whenever any complaint/grievance against banks are received by the Government, the same are sent to the concerned authority/banks for appropriate remedial action. The banks have well laid out systems and procedures for various banking activities. Any deviations thereof are dealt with accordingly. Moreover, bank branches are subject to regular inspections/audit by internal as well as external auditors on a periodical basis. Any observation/deviation are dealt with for appropriate remedial action.

This information was given by the Minister of State for Finance, Smt. Nirmala Sitharaman in written reply to a question in Lok Sabha today.

Banking Regulation Act supervision strengthens oversight of rural bank operations, paired with audits and grievance redressal mechanisms. Supervision under the Banking Regulation Act, 1949 and periodic statutory audits, together with internal and external inspections, constitute the core framework to detect and remedy irregularities in rural banking. Banks must maintain internal control systems and governance bodies such as Audit Committees; observed deviations are subject to remedial action. Complementary mechanisms include Vigilance Cells, Risk Management and Investment Committees, and the Banking Ombudsman Scheme for grievance redressal, with government-forwarded complaints routed to the concerned bank or authority for action.