RBI set parameters for appointing Bank Auditor for FY 2021-22 and onwards



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The Reserve Bank of India (RBI) has issued new guidelines for the appointment of Statutory Central Auditors (SCA) and Statutory Auditors (SA) for commercial banks, Urban Cooperative Banks, and Non-Banking Financial Companies, effective from FY 2021-22. These guidelines detail crucial aspects such as applicability, the requirement for prior RBI approval for certain entities, the number of auditors, eligibility criteria based on firm experience and partner qualifications, auditor independence, and tenure with rotation rules.

RBI on 27.04.2021 vide notification RBI/2021-22/25 Ref.No.DoS.CO.ARG/SEC.01/08.91.001/2021-22 has issued guidelines for appointment of Statutory Central Auditors (SCA)/ Statutory Auditor (SA) of commercial banks (excluding RRB), Urban cooperative banks (UCBs) and Non-Banking Financial Companies(NBFCs) including Housing Finance Companies. Notification clarifies applicability, approval, number of auditors (i.e. maximum and minimum), eligibility, independence, tenure and rotation of SCA/SA. I. A
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