Make Banks Board Bureau or RBI selector of bank auditors - ICAI to Govt

The Institute of Chartered Accountants of India (ICAI) has asked the government to put in place a more transparent process in selecting auditors in banks, saying its demand is particularly relevant in the context of high probability of frauds in the lending institutions in the aftermath of demonetisation.

The ICAI is of the opinion that in the demonetisation context, this will be even more relevant. The chartered accountants' institute had also suggested that the Banks Board Bureau should frame norms for appointing the central statutory auditors.

Till a few years back, a committee, which included officials from the Finance Ministry, the Reserve Bank of India, Comptroller and Auditor General of India, India Banks' Association, used to appoint the auditors. That system was put in place on the recommendations of a panel headed by former financial services secretary D K Mittal. #casansaar (PTI - Business Standard)