RBI/2007-2008/217
Ref.DBS.ARS.BC. No. 07/ 08.92.001/ 2007-08
December 20, 2007
The Chairman & Managing Director, all Nationalised Banks and
The Managing Director, Associate Banks of SBI
Dear Sir/Madam,
Remuneration payable to the Statutory Central and
Branch Auditors of Public Sector Banks from the year 2006-07
Please refer to our circular DBS.ARS.No.BC.08/80.92.100/2006-07 dated June 06, 2007 on
remuneration payable to statutory central and branch auditors of public sector banks from the year
2006-07.
2. As per para H of the above circular, the reimbursement of lodging charges to
partners/proprietors/qualified and unqualified assistants of audit firms has been linked to IBA
approved rates for bank officials. However, it has been brought to our notice that the IBA has since
discontinued the practice of approving rates and has advised its member-banks to enter into
arrangements at the bank level with reputed hotels to facilitate stay of their officials while on duty
outside the Headquarters.
3. In view of the above, it has been decided that for the purpose of reimbursement of the lodging
charges payable to statutory auditors, the banks may adopt the category-wise limits fixed for lodging
charges payable to their officials while they are on duty outside the Headquarters. That is, banks may
reimburse lodging charges to their statutory auditors as under :
Category of audit officials Scale & designation of bank officials
Partners / proprietors of audit firms
(central & branch audit firms)
VII – General Manager
Qualified Assistants III – Senior manager
Unqualified Assistants I – Officers
Wherever banks have Guest House or Visiting Officers’ Flats, the same may be utilized to cater to
the needs of the auditors.
4. Please acknowledge receipt.
Yours faithfully
(P.S. Sharma)
General Manager
CAclubindia
Late CA Sampat Jain
Published in Audit