Internal Audit & Compliance Management Tool for MFI & NBFC

Branch audits happen. Findings go unresolved. Arukus closes the loop.

The Internal Audit & Compliance Management System built specifically for MFIs and NBFCs — from field capture to manager sign-off, every observation tracked in one platform.

The Problem with Manual Audit Management

Most MFIs and NBFCs manage internal audits through a combination of Excel, WhatsApp, and email threads. The result:

Non-conformances that get flagged but never formally acknowledged
Observations that age past TAT with no automatic escalation
Area Managers reviewing audit reports weeks after they were due
No real-time visibility into branch compliance scores across zones
Field auditors in low-connectivity branches unable to submit findings on time

When a regulatory examination arrives, those unresolved observations become institutional liability.

System Capabilities

Risk-based branch scoring

Auto-calculates branch audit scores from weighted process parameters — no manual consolidation, no subjectivity.
Assigns risk grades to branches, enabling audit teams to prioritise high-risk units.
Covers physical cash verification, fixed asset tracking, and all field and back-office processes.
Branch grades categorised into bands: >80%, 60–80%, 40–60%, and <40% for instant portfolio triage.

End-to-end observation & compliance tracking

Screenshot

Observation form

Every non-conformance — fraud, L0 / L1 / L2 — is captured with employee details, customer details, product, root cause, and action taken.
Multi-level acknowledgement chain: Cluster Manager and Regional Manager must formally sign off before an observation can be closed.
Query & Reply workflow allows structured dialogue between auditor and manager on disputed findings.
Each fraud or non-compliance observation carries a negative score that directly impacts the branch's overall audit grade.
TAT tracking with escalation visibility — the audit head sees at a glance what's open, within TAT, overdue, or pending with named managers.

Mobile field auditor app — works offline

Screenshot

Field auditor app (from deck)

Field auditors access assigned audits, complete questionnaires, and record observations entirely on their mobile phone.
Full offline capability surveys, photos, geo-location, and documents are captured locally and synced automatically when connectivity is restored.
Geo-location stamping and photo / document upload per observation creates a defensible evidential audit trail.
Face ID login for secure auditor authentication.
Field Auditor Dashboard shows all assigned audits segregated by stage — New, Started, Primary Approved, Final Approved, etc.

Configurable processes — no IT required

Screenshot

Admin configuration screen

Define your own questionnaires, process weightages, scoring models, and escalation routes entirely through the admin interface.
Supports multiple question types: MCQ, 2-Input, 1-Input, and Simple Weighted Average.
Configure which processes require auto-sampling and what sample size rules apply.
Manage user roles and permissions (Audit Executive, Approver, Admin, Area Manager, etc.
Supports both Organic audits (field branch visits) and Inorganic audits (departmental / functional: Admin, HR, IT, CMS, Training, and more).

Real-time dashboards — two-tier architecture

Auditor-level dashboard: hub and region-wise audit data, compliance closure status, and staff-wise observation counts.
Senior Management dashboard: organisation-wide audit ratings, QTD negative score trend by zone, case-wise observation matrix.
Quarter-wise process ratings across Recovery, Cash Management, CGT, GRT, Disbursement, CC Group Loan, CC Individual Loan, Customer Awareness, and more.
Branch grading distribution by Zone immediately shows how many branches fall in each performance band.
Staff wise major observation and fraud raised report for auditor performance tracking.
Centre/client visit count by Audit Executive

Comprehensive Report Library

Screenshot

Report download screen

Consolidated Branch Audit Report
Process-Wise Branch Score Report
Detailed Audit Report
Detailed Audit Report for Auditee
Work Status Report
User List Report
Center Attendance Report
Negative Compliance Report
Coverage Report
Risk Report
Consolidated Branch Score Report
Activity Report
All reports filterable by Zone, Region, Branch, and Quarter — downloadable in one click.

Unlock Compliance Excellence: Empower Your Organization with a Fully Customizable Audit Tool, Assessing Unit-Level Process Compliance Across Branches with a Smart Scoring Mechanism

1 Physical Cash Verification

Reconcile physical cash by denominations and identify mismatches from previous audit records and current spend

2 Asset Tracking

Account for all physical branch assets like furniture, fixtures, computers, etc

3 Process Compliance

Sampling Survey

Measure Process Compliance

A 100% configurable questionnaire that measures every unit level processes with weighted scoring system

Field Process: CGTs, GRT, Disbursements, Recovery, OD follow-ups, Household Verification, Sourcing & Collection.
Back-End Activity: Administration, Documentation, Cash Management, and MIS processes.
Customer Contact: Customer Awareness, Individual & Group Loans, OD Loans, and SOPs compliance.
Each questionnaire response carries a score; the system auto-calculates weighted sub-process and overall process scores.

Non Sampling Survey

Issue Based Investigation

A 100% configurable questionnaire that measures every unit level processes with weighted scoring system

Captures fraud and non-compliance incidents with full detail: employee involved, customer affected, product, root cause, and remediation action.
Each observation is classified by severity: L0 (Fraud / High Risk), L1 (Major), L2 (Minor).
Negative score assigned to each observation type — automatically factored into the branch's final audit grade.
Supports ad-hoc investigation surveys for reported incidents outside the regular audit cycle.
All non-sampling observations must be agreed upon by the responsible manager before the audit can be formally closed.

4 Audit Score Sheet

Grade Branches based on Audit Scores auto calculated from all parameters that are weighted by their impact on overall performance

5 Detailed Reports

Final Audit Reports of Branches are reviewed by respective Area Managers for revisions before being published to the system

What Changes When You Deploy Arukus Audit & Compliance

For the audit head

Every branch has a scored, comparable audit outcome — no manual consolidation.
Non-conformances cannot be ignored; the system enforces manager acknowledgement.
Field auditors work without connectivity gaps — no incomplete rural branch audits.
Full audit trail for every observation — defensible in regulatory examinations.
Staff performance visible: observations raised and centre visits by each IA Executive.

For senior management & CRO

Real-time organisation-wide compliance score across all zones and regions.
QTD negative score trend identifies deteriorating zones before they become RBI findings.
Quarterly trend comparison shows whether compliance is improving or declining.
Risk-graded branches prioritised for audit resources — not a uniform approach.
Configurable to your institution's specific process framework — not a generic tool.

Why MFIs and NBFCs Choose Arukus

Microfinance Institutions (MFI) and Non-Banking Financial Companies (NBFCs) operate in a complex and ever-evolving financial landscape, serving diverse customer segments with varying needs. In this highly regulated and competitive environment, an effective Audit & Compliance Management tool becomes an indispensable asset for these institutions, helping them overcome challenges and drive success. Let’s explore the key reasons why an Audit & Compliance Management tool is a must-have for MFIs and NBFCs:

1. Regulatory readiness at every branch — not just head office:
RBI and MFIN examinations increasingly scrutinise branch-level compliance documentation. Arukus generates a scored, timestamped, and auditor-signed record for every branch visit — ready for examination without any manual preparation.

2. Observation resolution that the regulator can see:
Every non-conformance has a named owner, a defined TAT, and a documented resolution path. Unresolved observations are visible in real time to the Audit Head — and reflected in the branch’s audit score.

3. Built for the geography of microfinance:
MFI branches operate in semi-urban and rural locations with intermittent connectivity. The Arukus mobile app is designed for this reality — offline-first, with automatic sync when the auditor returns to connectivity.

4. Scales with your branch network:
Whether you operate 50 branches or 5,000, the platform architecture scales without configuration changes. Arukus has deployed this across institutions of varying sizes — from regional MFIs to nationally operating NBFCs.

Full Organisational Coverage: Organic & Inorganic Audits

Organic Audits — Branch Field Visits

Regular and snap audit types.
Field process compliance (CGT, GRT, Disbursement, Recovery, Verification).
Back-end activity compliance (Admin, Documentation, Cash Management, MIS).
Customer contact SOP compliance.
Physical cash verification and fixed asset tracking.
Non-sampling observations for fraud and policy violations.

Inorganic Audits - Departmental & Functional

Head office and support function audits.
Administration, HR, Training, CMS.
IT governance and cyber security (RBI Direction).
IT policy compliance and IS Audit.
Business continuity plan review.
Support Audit: final scoresheet for IT and support processes.
Separate questionnaire and scoring framework per department.

Audit & Compliance

Branch audits happen. Findings go unresolved. Arukus closes the loop.

The Problem with Manual Audit Management