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CASA Process Flow

"The credit team verify the document assess the financial and creditworthiness of the borrowers and updates facilities in the customer account." For Current account it is understandable, but what is the necessity for determinign credit worthiness in case customer wants to savings account? Cant just anyone open a savings account with the bank?


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

17-Nov-20 23:10

22

Answers (7)

Best Answer

Its needed only for loan.


Suraj Lakhotia

Suraj Lakhotia

Admin

18-Nov-20 08:09

Suraj Lakhotia Admin

Its needed only for loan.

But in the book no mention of loan under CASA. It says customer approaches RM, RM asks for KYC and other documents and boom!... next step.. hands over these documents to Credit / Risk team. Then it says Credit team verifies financial and credit worthiness of customer, and finally, CASA facility is provided to customer. Utter nonsense, isn't it Sir? This book, I mean.


Thread Starter

Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

18-Nov-20 09:12

Study material needs a lot of improvement.


Suraj Lakhotia

Suraj Lakhotia

Admin

18-Nov-20 16:10

Thread Starter

Kumarjit Dey

But in the book no mention of loan under CASA. It says customer approaches RM, RM asks for KYC and other documents and boom!... next step.. hands over these documents to Credit / Risk team. Then it says Credit team verifies financial and credit worthiness of customer, and finally, CASA facility is provided to customer. Utter nonsense, isn't it Sir? This book, I mean.

On the basis of my understanding, sometimes HNI Clients (who have savings account and not current account) can avail a line of credit based on credit worthiness. Even retail clients have the opportunity to avail an overdraft sometimes in case of emergency or urgent need of funding (Eg: IPO Funding). So, sometimes banks do a quick check on credit profiles to know the creditability of the client and advise them on products they feel will be beneficial to them (Such as loans, credit cards or deposits) accordingly. This could maybe serve as the logic for the credit check


Suraj Narayanan

Suraj Narayanan

CA Final

7K+

19-Nov-20 01:39

Thread Starter

Kumarjit Dey

Nice answer. Seems logical to me. Suraj Sir, your comments on this please.

Still credit worthiness comes only when there is a loan requirement. In whatever form.


Suraj Lakhotia

Suraj Lakhotia

Admin

19-Nov-20 10:59

Suraj Lakhotia Admin

Still credit worthiness comes only when there is a loan requirement. In whatever form.

Okay. Understood.


Thread Starter

Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

19-Nov-20 13:30

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