Revised Guidelines for Appointment / Re-appointment of Statutory Branch Auditors of Public Sector Banks

RBI has revised Guidelines for Appointment / Re-appointment of Statutory Branch Auditors of Public Sector Banks and norms on Business Coverage under Statutory Branch Audit of Public Sector Banks

Presently, the Reserve Bank of India accords prior approval for the appointment/ re- appointment of statutory branch auditors (BAs) of Public Sector Banks (PSBs) as required by various applicable statutes. Based on a review of the matter, ti has now been decided to grant general permission to PSBs for appointment/ re-appointment of B A s subject to the requirements mentioned herein.
Eligibility Criteria

Coverage

(i) For FY 2022-23, statutory branch audit of PSBs shall be carried out so as to cover a minimum of 70% of all funded and 70% of all non-funded credit exposures of the bank.

(il) For FY 2023-24 and onwards, the PSBs are being given the discretion to determine business coverage under statutory branch audit, as per their Board approved policy.