Abstract:
Banking is based on Confidence. Banks must adopt measures to enhance the public
confidence on the one hand and minimize faults and misdemeanors. Continuous monitoring
of the activities of the Bank becomes imperative with the set goal of maintaining high
standards of performance by its cadre and the services available and rendered and to
minimize all ill effects arising out of the actions of the cadre and services offered. Inspection
is monitoring to assess the performance on a recurring basis to ensure compliance with set
standards and norms - more a guiding process than a fault finding process. Investigations can
arise out of the above routine inspections, complaints, reports from various sources; follow
up on inspection reports etc. Both have to be fine-tuned to maintain the tripartite relationship
in the Bank on an even keel - the clientele, the cadre and the Management. The Banks have
separate departments with their own cadres functioning exclusively in that capacity. The
decentralized units' supplement it. Controversy is there as to its effectiveness in the light
innovations in functional distribution Irrespective of the form or the composition, functions
have to be meticulously carried out if the Bank is to continue as an orderly unit ,especially
facing competitive banking. The staff selected for these functions must be more of a guide,
philosopher and friend than a one wielding the big stick. There is a certain amount of coercive
authority which a manager may lack because of familiarity and this is useful in bringing
about the desired orderliness and tranquility. Unlike those serving the clientele these
functions do not yield immediate profits but their effectiveness is felt when there is orderliness
and even tranquility. Absence can lead to open defiance from within and out. It has a salutary
effect on the staff that may meander in the absence of this strong hand.
