The Reserve Bank of India has directed co-operative banks and non-banking financial institutions to appoint statutory auditors.
What are the instructions of Reserve Bank of India?
1) Banks with a turnover of more than Rs 15,000 crore will have to be audited jointly by two different institutions.
2) Auditors will have to be appointed for 3 years.
3) Commercial banks other than rural banks; The guidelines will apply to home lending companies, co-operative banks and non-banking financial institutions.
4) It will be implemented from the current financial year 2021.
5) The Reserve Bank has also directed all private banks to appoint independent directors as chairpersons of the board of directors.
Reference : News On Air