Good News- Allotment of bank branch audits - Relaxation

Last updated: 17 March 2007 Follow on Google News

My dear colleagues,

Sub.: Allotment of bank branch audits

You might be aware that the Reserve Bank of India has recently decided to restrict audit of bank branches, to such branches whose advances are more than Rs.5 crores. Hitherto, this limit of auditable branches was Rs.1 crore.

Not only me, but the entire Council was perturbed due to the revised norms. We were concerned, not just because few members of the profession may not get audit allotment, but more due to the fact that sizeable number of branches of banks will go unaudited. We argued with RBI that advances should not be the criteria of determining the requirement of audit, but there were several other matters which should be put under the strict scanner of audit, in view of large volume of public money involved in the banks. According to RBI, the norm of Rs.1 crore was fixed sometime in the year 1975, and the same needed to be revised in view of efflux of time. We nevertheless made representation to the Deputy Governor of RBI immediately and our Council members, who flew from Delhi to Mumbai specially for this purpose, also met some of their key senior officials. I had a dialogue with the Deputy Governor.

We understand that in view of the urgency in starting the work of audit, the allotments have been finalised in respect of those branches whose advances are more than Rs.5 crores. The norms are being revised and the allotments in respect of branches having advances to the tune of more than Rs.3 crore are in the process of being finalised which would form part of their revised panel.

I am sure the members will appreciate the efforts taken by the ICAI.

Assuring of best and continued service to the profession, I remain

Yours sincerely

CA. SUNIL TALATI
President, ICAI

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