Gold Verification & Inspection Credit Appraisal

- Maintain an Average of 50 60 Gold inspections in a year with a productivity of 150 200 packets per day.
- Verify the purity, weight, and authenticity of pledged gold ornaments in accordance with approved appraisal standards.
- Check for any fake, duplicate, tampered, altered, or suspicious gold items and document observations accurately.
- Perform ornament count verification and confirm correct identification of ornament names and descriptions.
- Ensure all pledged ornaments match system records, appraisal details, and branch documentation.
- Maintain and update Gold Inspection formats during inspection for accurate uploading in the final report.
- Gi need to ensure the packets opened for verification are properly sealed and returned to Strong room.
- Prepare and maintain a detailed list of irregularities identified during the inspection for system updating and audit tracking.
- Clearly update identified irregularities on the top of the Gold Loan cover and in the stock statement to ensure transparency and visibility.
- Immediately update the purity details of irregular accounts in the system to prevent further credit exposure and risk.
- GI need to ensure counting and tallying of packets at the end of Gold inspection before handing over the key to custodian.
- Maintain and update Gold Inspection formats after inspection for accurate uploading in the final report.
- Promptly alert the hierarchy and Head Office in cases requiring immediate intervention, escalation, or corrective action.
- Ensure proper documentation and evidence collection to support all findings and strengthen risk mitigation measures.

Audit of Gold Loan Process

- Review and verify whether branches are strictly following gold loan sanctioning policies, operational guidelines, and approved SOPs.
- Verify the completeness and accuracy of documentation related to loan disbursement, renewal, closure, and related transactions.
- Check compliance with prescribed internal controls and risk management procedures throughout the loan lifecycle.
- Verify that non-acceptable ornaments, bullion, prohibited articles, or ineligible pledged assets are not accepted against gold loans.
- Identify any deviations, process violations, or control weaknesses and report them for immediate corrective action.
- Ensure all exceptions and irregularities are properly documented and escalated to the concerned hierarchy for resolution.

Risk Identification and Mitigation

- Detect and assess operational risks, fraud indicators, and deviations from established processes and SOPs during inspection.
- Ensure strict adherence to dual custodianship policy and other security protocols governing vault access and asset handling.
- Conduct confidential questionnaires with branch staff to assess adherence to policies, identify potential conflict of interest, and ensure ethical conduct in operations.




- Perform lifestyle audits of staff to identify any disproportionate or unexplained changes in lifestyle that may indicate potential risk or misconduct.
- Ensure all interactions are handled with confidentiality, professionalism, and adherence to HR and audit guidelines.
- Physically verify selected packets against system records, tags, and appraisal details.
- Ensure the process helps in detecting and deterring internal fraud, misappropriation, or manipulation of gold assets.
- Conduct detailed verification of all Cautious List” gold packets identified as high-risk or requiring enhanced scrutiny.
- Identify and document any irregularities in gold appraisal, valuation, or custody of pledged assets.
- Identify and flag high-risk business categories such as pawn broking entities, jewellery shops, and similar commercial operators.
- Detect and report staff pledges, staff-related accounts, and pledges from immediate family members of staff as per policy guidelines.
- Assess such accounts for potential conflict of interest, misuse of authority, or preferential treatment risks.
- Promptly escalate and report all high-risk observations or potential fraud cases to the appropriate authority for immediate action.
- Ensure timely communication of snap audit triggers and critical risks to support effective mitigation and prevention of further exposure.

Compliance Monitoring

- Ensure strict adherence to company policies, regulatory guidelines, and internal audit standards during all gold loan operations and inspections.
- Verify compliance with KYC norms, customer identification procedures, and supporting documentation requirements.
- Identify any deviations from regulatory or internal compliance frameworks and ensure timely reporting and escalation.
- Confirm that all customer records are complete, accurate, and properly maintained as per prescribed standards.

Corrective Action and Follow-up

- Track and monitor the closure status of audit observations to ensure timely resolution within defined timelines.
- Verify that corrective actions implemented by branches are in line with audit recommendations.
- Reassess high-risk observations to confirm that issues have been effectively resolved and do not recur.
- Ensure proper documentation and evidence are maintained for all closure actions.
- Escalate pending or ineffective closures to the appropriate authority for further intervention.

Reporting & Documentation

- Update the system accurately for each ornament, including Gross Weight, Stone/Wax Weight, Net Weight, Purity, and identified irregularities.
- Ensure correct entry of ornament name and ornament count in the system without any mismatch.
- Prepare detailed, structured audit reports with explicit findings, observations,



and supporting evidence.
- Accurately document all discrepancies, deviations, and irregularities identified during the audit process.
- Provide clear and actionable recommendations for corrective and preventive actions to strengthen controls and reduce risk exposure.
- Upload Key Movement Register, Gold Inspection Formats, Staff Acknowledgement letter, Audit Closure and Gold Appraisal Training Confirmation documents for verification.
- Ensure all reports are complete, accurate, and submitted within prescribed timelines to the designated authority.
- Maintain a proper audit trail and documentation repository for future reference, verification, and compliance assurance.

Audit Score Card and Audit Gradation

- Gold Inspectors evaluate approximately 80 audit indicators during each Gold Inspection, ensuring a comprehensive risk-based and 360-degree audit approach.
- The inspection covers seven key risk parameters, including Operational, Credit, Monetary/Financial, Legal, Regulatory, Reputational, and Fraud risks.
- Ensure accurate recording and updating of physical verification observations to support correct Audit Score Card calculation.
- Maintain consistency and objectivity in scoring to ensure fair audit gradation and risk classification of branches.
- Ensure all inputs are properly documented to support transparent scoring, reporting accuracy, and risk-based decision-making.

Audit Closure Meeting

- Ensure proper Audit Completion Meeting is conducted with branch staff in coordination with the Area Manager (AM).
- Present and explain all audit observations, findings, and deviations identified during the inspection.
- Communicate the audit gradation/rating along with clear justification and reasons to ensure transparency and understanding.
- Discuss required corrective and preventive actions with branch staff for timely compliance and process improvement.
- Ensure alignment between audit team and branch on closure timelines and action plans.
- Document meeting outcomes and ensure proper acknowledgement and follow-up tracking for closure of observations

Auction Management

- Conduct pre-auction verification of pledged gold packets and ensure proper sealing, tagging, and documentation as per SOP.
- Ensure that only accounts with properly issued Auction Notices are considered for sealing of auction packets.
- Prevent sealing or inclusion of any packets where auction notice has not been served or is pending approval.
- Perform re-appraisal of gold purity and weight and ensure accurate system updation before auction processing.
- Perform safe release of auction-sealed packets from the auction centre with proper authorization and dual control.
- Conduct or supervise auction sales in coordination with the authorized auctioneer, ensuring transparency and compliance with approved procedures.
- Ensure all auction-related activities are properly documented, with complete audit trail maintained for verification and regulatory compliance.

📌 Gold Inspector-Maharashtra
🏢 Muthoot FinCorp (MFL)
📍 Maharashtra