DUE DILIGENCE REPORT AS PRESCRIBED BY RBI:
Reserve Bank of India specified the framework to be observed by banks for improving the sharing/dissemination of information among the banks about the status of the borrowers enjoying credit facilities from more than one bank.
The Diligence Report covers many critical and relevant matters such as details of the Board of Directors, shareholding pattern, details of the Forex exposure and overseas borrowings, risk mitigation through insurance cover in respect of all assets, payment of all statutory dues and other compliance, proper utilization/end-use of the loan funds, compliance with mandatory Accounting Standards, compliance with various clauses of Listing Agreement in case of a listed company etc.
The banks are required to obtain regular certification of Diligence Report from a professional.