Agencies for Specialized Monitoring (ASM)
Agencies for Specialized Monitoring (ASM) audits are mandated by banks and financial institutions, particularly for borrowers with large credit exposures or stressed assets. These audits provide lenders with an independent, continuous assessment of fund utilization, cash flows, and compliance with loan covenants.
By offering real-time oversight, ASM audits help detect early warning signals, prevent fund diversion, and strengthen credit monitoring mechanisms. They are a vital safeguard for lenders, ensuring responsible borrowing and protecting the banking system from potential defaults and frauds.
About This Service
Our ASM services are designed to provide independent monitoring of borrower accounts as per RBI and lender-specific requirements. We track fund flows, verify end-use of funds, and ensure adherence to sanction terms and covenants. This helps banks gain confidence in the borrower’s financial discipline and repayment capacity.
We conduct periodic reviews of stock statements, receivables, related-party transactions, and large value payments to detect irregularities. Our focus extends to identifying diversion of funds, round-tripping, and other practices that may compromise the lender’s security position.
By leveraging technology and data analytics, we provide lenders with actionable insights and early warning indicators of financial stress. This proactive approach enables timely corrective actions such as restructuring, recovery, or legal intervention.
Through our ASM audits, we help financial institutions strengthen their credit monitoring framework, mitigate risks, and ensure better governance in borrower–lender relationships.
Key Features / Scope of Work
- Independent monitoring of borrowers as per RBI/lender mandates.
- Verification of fund utilization and end-use of disbursements.
- Review of compliance with sanction terms and loan covenants.
- Periodic analysis of stock statements, receivables, and fund flows.
- Identification of diversion, round-tripping, or irregular practices.
- Early warning signals for potential stress or default.
- Use of analytics and monitoring tools for real-time oversight.
- Actionable reporting to banks for timely corrective action.
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