General Knowledge · Banking & Financial Awareness

Regarding 'Internal Inspection' in banks, internal inspection is a periodic evaluation conducted by a bank's own officials to ensure branches function according to rules set by the Head Office. It focuses heavily on operational and administrative aspects. Statement I: The main objective of internal inspection is to evaluate the performance of the branch manager and staff in achieving business targets set for the financial year. Statement II: Internal inspection reports are confidential documents and are not shared with Statutory Auditors or RBI Inspecting Officers during their audits. Statement III: The inspection process includes physical verification of securities charged to the bank, cash balance in the vault, and sensitive stationery like cheque books and demand draft leaves. Based on the statements above, which of the following is correct?