RBI did not audit PNB branch that sanctioned loans - CVC
PrintListen to this Article
Chowdary stressed the need to put into place a more robust auditing system. "They did not do this (an audit)," the head of the probity watchdog said.
The CVC exercises superintendence over the CBI which is looking into the over Rs 13,000-crore PNB fraud case.
The RBI had the regulatory responsibility for the banking sector but any lack of integrity would be looked at by the CVC, he added.
Chowdary said according to the RBI, it had switched over from a periodic audit to a "risk-based" audit which is conducted when there is a financial risk involved.
"To determine risk, they must have some parameters. Based on that they would have done that (auditing). (But) there was no apparent audit by the RBI during this period (of fraud)," Chowdary said.
Union finance minister Arun Jaitley had in February slammed regulators for failing to detect the fraud, saying that unlike politicians, regulators in the Indian system were unaccountable.
Chowdary pointed out that the RBI issues general guidelines as a regulator and also when foreign exchange is involved.
"They are not going to see from branch to branch and bank to bank what they are supposed to do," he said. It was primarily the responsibility of the banks to ensure that their business was conducted in a proper and ethical way, he added.
He also said when something goes wrong, "one cannot blame everybody". Asked about the probe in the PNB scam, he said what the CVC was doing in the case could not be disclosed now as "it is work in progress". #casansaar (Source - PTI, Times of India)
Category : Auditing | Comments : 1 | Hits : 2508
In a boost to the National Financial Reporting Authority (NFRA), the regulator for auditors and audit firms dealing with large and listed companies, the Supreme Court has upheld an order by the National Company Law Appellate Tribunal (NCLAT) related to disciplinary action against errant auditors. Last month, the apex court dismissed an appeal filed by chartered accountant Sam Varghese, partner at K Varghese & Co. Varghese was one of the four auditors against whom NFRA had acted, and in...
Hindustan Unilever Ltd. has announced that its cost auditor has been disqualified from continuing amid a conflict of interest. The decision was made after it was discovered that Rasesh Vipin Chokshi, who is a partner at the firm R.A. & Co., was holding shares in the company. According to the Companies Act, 2013, a cost auditor cannot hold any shares in the company for which they're auditing the costs. Following this violation, M/S R.A. & Co. has been asked to vac...
The Bombay High Court has granted bail to Anita Kirdat, a former concurrent auditor of the Punjab and Maharashtra Cooperative (PMC) Bank, in connection with a multi-crore loan fraud case. Kirdat, 48, a chartered accountant (CA) from Bhandup, who runs a firm, Anita Kirdat and Company, was arrested by the Economic Offence Wing of Mumbai Police in 2019 in the PMC Bank scam. She served as the concurrent auditor of PMC Bank from 2005 to 2019. She was alleged to have been appointed at the behest...
Tighter regulations and lower fees are making the auditing profession challenging, said panelists at an international conference held by the National Financial Reporting Authority (NFRA) here on Tuesday. “The business model of pure audit is under significant pressure. It’s getting tighter and tighter from the point of avoiding conflict,” said Uday Kotak, former managing director and CEO of Kotak Mahindra Bank. Stating that regulators would want the best of talent in the audi...
The Comptroller and Auditor General of India (CAG), Girish Chandra Murmu, on Friday announced the setting up of the Supreme Audit Institution India’s International Centre for Audit of Local Governance (iCAL) in Rajkot, Gujarat. At the conclusion of the three-day international conference on ‘Strengthening of Grass Roots Democracy and Accountability’, Mr. Murmu said local governments played a pivotal role in shaping the lives of citizens. Effective accounting platforms and aud...
Comments
Khaja Anwar Mohiuddin
05-Apr-2018 , 05:33:46 pmCVC should write to the President of India to take action against RBI for the period when fraud occurred PNB and the official found responsible for the negligence.