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Home finance firms to comply with risk-based internal audit norms

RBI: Stricter RBI rules force auditors to rethink on assessing holding companies

RBI: Stricter RBI rules force auditors to rethink on assessing holding companies
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RBI unveils risk-based internal audit guidelines for select NBFCs, urban co-op banks

Updated Feb 03, 2021 | 16:37 IST Currently, all the entities supervised by the RBI have their own approaches on internal audit, resulting in certain inconsistencies, risks and gaps in the system, the RBI said RBI unveils risk-based internal audit guidelines for select NBFCs, urban co-op banks  |  Photo Credit: PTI New Delhi: The Reserve Bank of India (RBI) on Wednesday unveiled the risk-based internal audit (RBIA) system for select non-bank lenders and urban co-operative banks, with a view to enhance the quality and effectiveness of their internal audit system. RBI had announced in the ‘Statement on Developmental and Regulatory Policies’ issued as part of the Monetary Policy Statement dated December 4, 2020 that with a view to strengthen the Internal Audit Function, which works as a third line of defence, suitable guidelines will be issued to large UCBs and NBFCs on adoption of Risk-Based Internal Audit (RBIA).

RBI releases framework for risk-based internal audit of NBFCs, UCBs

RBI framework for risk-based internal audit of NBFCs, UCBs The new framework will be applicable to all deposit taking NBFCs, all non-deposit taking NBFCs with asset size of Rs 5,000 crore and above, and all UCBs with asset size of Rs 500 crore and above. BusinessToday.In | February 5, 2021 | Updated 15:27 IST The adoption of RBIA framework will help in enhancing the quality and effectiveness of internal audit system of the entities, the Reserve Bank of India said. The Reserve Bank on Wednesday released the guidelines for risk-based internal audit (RBIA) for NBFCs and urban co-operative banks. The RBIA guidelines aim to align the requirements of internal audit of Non-Banking Finance Companies (NBFCs) and Primary (Urban) Co-operative Banks (UCBs) with those for Scheduled Commercial Banks (SCBs), and its adoption will help in enhancing the quality and effectiveness of internal audit system of these entities, the Reserve Bank of India (RBI) said.

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