48,539 CA firms engaged by Public Sector Banks in the last 3 years

The Minister of State DR. BHAGWAT KARAD in the Ministry of Finance in a written reply to a question raised in Lok Sabha said, “48,539 CA firms engaged by Public Sector Banks in the last 3 years.”

SHRI D.M. KATHIR ANAND asked these questions in Lok Sabha:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government has reduced the engaging of CA firms doing Concurrent Audit, Internal Audit and stock Audits in Nationalised Banks across the country and if so, the details thereof;

(b) whether the Reserve Bank and Public Sector Banks have decided not to have concurrent audit for Banks having turnover of less than Rs. 40 crore per year and if so, the details thereof; and

(c) the total number of CA firms engaged by the PSBs in the last 3 years, year-wise and Bankwise?

The Minister of State replied:

(a) The Government does not engage CA firms for doing Concurrent Audit, Internal Audit and stock Audits in Public Sector Banks.

In respect of concurrent audit, Reserve bank of India (RBI) vide it’s Circular dated September 18, 2019, has prescribed that banks should have their own Board approved policy covering sections, including, inter-alia, the scope of work to be entrusted to concurrent auditors, coverage of business/branches etc. Accordingly, banks are having their own board approved policy for concurrent audit. Further, Public Sector Banks (PSBs) are having their own board approved policy on scope and applicability of internal and stock audit.

(b) RBI has apprised that, they have not issued any instruction advising the PSBs not to have concurrent audit for Banks having turnover of less than Rs. 40 crore per year.

(c) As per information received from RBI, Year-wise and PSBs-wise details of the total number of CA firms engaged as Statutory Central Auditors (SCA) and Statutory Branch Auditors (SBAs), in the last 3 years are given in the table below: