RBI cracks the whip on auditors, wants them to keep eye on five key areas

RBI cracks the whip on auditors, wants them to keep eye on five key areas :

The Reserve Bank of India (RBI) has asked bank auditors to keep a close watch on five key parameters and is to reassign its senior supervisory authority in charge of the inspection of specific banks. The twin changes have been set in motion to better leverage the skills of the wider auditor fraternity and its internal staffers. The new housekeeping diktat for auditors follows a meeting called by the RBI’s Department of Banking Supervision audit cell. A significant aspect of the formal meetings to be held hereon on a quarterly basis will be the absence of bank officials when their auditors are called in.

The areas listed by the RBI are:

1. Banks’ marginal cost of funds-based lending rate,
2. The performance of their priority sector portfolio,
3. Income recognition and asset classification norms,
4. Robustness of the processes and early warning systems to identify frauds, and
5. Adherence to guidelines on information security. - business standard

Source: Business Standard
RBI cracks the whip on auditors, wants them to keep eye on five key areas