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New credit analysts review bank statements inconsistently, and files cannot be re-checked because figures and evidence are not recorded.
Use a fixed 18-point checklist in six blocks, record the figure and page reference for each point, and end with pass, refer or reject based on the lender's own policy cues.
Six blocks (authenticity, income, obligations, balances, returns, behaviour), a notes column, mandatory fields for income, EMI total, return count and outcome, and policy thresholds set by the credit team.
A one-page record per file that a second reviewer can repeat, with a clear outcome and the reason for any refer.
A usable bank statement checklist runs in six blocks: authenticity, income, obligations, balances, returns and behaviour. For each line, tick it, write the figure and write the page number where you found it. That way a second reviewer can repeat your check in minutes.
Copy the table below into a sheet or print it. The pass and reject cues are placeholders. Replace them with your lender’s own credit policy.
Which 18 checkpoints go on the page?
| # | Block | Question | Where to look | Pass / refer / reject cue |
|---|---|---|---|---|
| 1 | Authenticity | Is it the bank’s own file or a stamped copy? | File details, header | Reject if screenshot or edited |
| 2 | Authenticity | Does the name and account match the application? | Header | Reject if mismatch |
| 3 | Authenticity | Are all months and pages present? | Dates, page numbers | Refer if any gap |
| 4 | Authenticity | Does each closing balance equal the next opening balance? | Page breaks | Refer if any break |
| 5 | Income | What is average monthly income after exclusions? | Credits | Record the figure |
| 6 | Income | Is the main income regular in date and amount? | Salary or receipts | Refer if irregular |
| 7 | Income | Are own transfers and loan disbursals removed? | Credits, bureau | Must be done |
| 8 | Obligations | What is the total monthly EMI? | NACH, ECS, standing instructions | Record the figure |
| 9 | Obligations | Do EMIs match the bureau report? | Debits vs bureau | Refer if an EMI is missing |
| 10 | Obligations | Are there loan-app or informal repayments? | UPI debits | Refer if present |
| 11 | Balances | What is the average balance? | Daily or set-date balances | Record the figure |
| 12 | Balances | How many days near zero or overdrawn? | Balance column | Refer if frequent |
| 13 | Balances | Is there a cash dip before EMI dates? | Balances around EMI date | Note it |
| 14 | Returns | How many inward cheque or NACH returns? | Return narrations | Refer if any in recent months |
| 15 | Returns | Were return charges debited? | Charges | Count them |
| 16 | Behaviour | Any large unexplained cash deposits? | Cash credits | Refer for explanation |
| 17 | Behaviour | Any circular or round-trip credits? | Same amount in and out | Refer |
| 18 | Behaviour | Any gambling, betting or crypto debits? | Narrations | Per policy |
What goes in the notes column, and what must never be blank?
Use notes for the reason, not the tick. “EMI ₹9,000 to an NBFC not on bureau, page 4” is useful. “OK” is not.
Four fields must never be blank: income figure, EMI total, number of returned debits, and outcome. If you could not check something, for example a scanned page you could not read, write that down and refer.
A worked example: a filled checklist that ends in refer
Anil applies for a ₹6,00,000 personal loan over 36 months. Key lines from his checklist:
| # | Finding | Page |
|---|---|---|
| 1–4 | Net-banking PDF, name matches, 6 months, balances carry | 1–12 |
| 5 | Average monthly income ₹72,000 (salary) | 2, 4, 6, 8, 10, 12 |
| 8 | EMIs: car loan ₹13,500 + consumer loan ₹7,500 = ₹21,000 | 3, 5 |
| 11 | Average balance about ₹38,000 | All |
| 14 | 2 NACH returns for insufficient funds, both on the car loan, in July and September | 7, 11 |
| 15 | 2 return charges debited | 7, 11 |
Now the arithmetic. Current FOIR is ₹21,000 ÷ ₹72,000 = about 29 percent. A ₹6,00,000 loan over 36 months at 15 percent a year has an EMI of about ₹20,800. After the loan, FOIR would be (₹21,000 + ₹20,800) ÷ ₹72,000 = ₹41,800 ÷ ₹72,000 = about 58 percent.
Income is steady and the FOIR may sit inside some lenders’ limits. But two returned EMIs in the last three months is a warning that cash is tight before EMI dates. Outcome: refer, with the note “2 NACH returns, pages 7 and 11; ask borrower; check bureau DPD”.
When the paper checklist becomes the bottleneck
At five files a week, this page takes perhaps 30 to 45 minutes per file. At 40 files a week, the checklist is still right, but filling it by hand becomes the bottleneck. That is the point at which teams look at manual vs automated review. The 7-step method behind this checklist is in how to read a bank statement for credit risk.
TransactIQ produces 40+ engineered credit signals covering income, obligations, balances, returns and behaviour, each rule-traceable so an analyst can check it against the statement. See the bank statement analyzer or NBFC lending.
What to read next
- How to read a bank statement for credit risk
- Manual vs automated bank statement review
- What counts as income in a bank statement?
- Bank statement analyzer
Content authored by practitioners with experience at Amazon India, Intuit QuickBooks, and the Tata Group. Meet the team →