In April, the Reserve Bank of India (RBI) came out with the norms for appointment of Statutory Central Auditors (SCAs) and Statutory Auditors (SAs) of commercial banks, Urban Co-operative Banks (UCBs) and Non-banking Financial Companies (NBFCs), including Housing Finance Companies (HFCs).
Implement norms for statutory auditors in next fiscal
The Finance Industry Development Council (FIDC) has urged the Reserve Bank of India (RBI) to implement the new norms regarding appointment of statutory auditors by banks and NBFCs in the next financial year.
| 29 April 2021 4:29 AM GMT
MUMBAI: The Finance Industry Development Council (FIDC) has urged the Reserve Bank of India (RBI) to implement the new norms regarding appointment of statutory auditors by banks and NBFCs in the next financial year.
The guidelines for appointment of Statutory Central Auditors and Statutory Auditors (SAs) of Commercial Banks (excluding RRBs), UCBs and NBFCs (including Housing Finance Companies) which were released on Tuesday would become applicable from the current financial year (2021-22).
UCB: RBI issues guidelines for appointment of Auditors
RBI has issued a Circular on ‘Guidelines for Appointment of Statutory Central Auditors (SCAs)/ Statutory Auditors (SAs) for Urban Co-op Banks and other financial entities on Tuesday.
These Guidelines provide instructions for appointment of SCAs/SAs, the number of auditors, their eligibility criteria, tenure and rotation, etc. while ensuring the independence of auditors.
The Guidelines shall become applicable from FY 2021-22 and onwards. However, UCBs and NBFCs shall have the flexibility to adopt these guidelines from H2 of FY 2021-22 so that there is no disruption.
“The revised Guidelines being issued will ensure that Statutory Auditors are appointed in a timely, transparent and effective manner. This is expected to improve the quality of financial reporting by the aforesaid Entities and also improve the audit quality”, notes a release from the Regulator.
Implement norms for statutory auditors in next fiscal, FIDC to RBI
By IANS |
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Reserve Bank of India (RBI). (File Photo: IANS). Image Source: IANS News
Mumbai, April 28 : The Finance Industry Development Council (FIDC) has urged the Reserve Bank of India (RBI) to implement the new norms regarding appointment of statutory auditors by banks and NBFCs in the next financial year.
The guidelines for appointment of Statutory Central Auditors and Statutory Auditors (SAs) of Commercial Banks (excluding RRBs), UCBs and NBFCs (including Housing Finance Companies) which were released on Tuesday would become applicable from the current financial year (2021-22).
In a letter to RBI Governor Shaktikanta Das, the FIDC said: The circular should be made applicable from April 01, 2022 i.e. FY 23 onwards for a smooth transition. Most of the NBFCs have already finalised the auditors for FY 22 and the flexibility of changing auditors in the second half of FY 22 doesn t really help