RBI issued guidelines for appointment/re-appointment of Statutory Auditors for State and Central Co-operative Banks

The Reserve Bank of India (RBI) has issued guidelines for the appointment or re-appointment of Statutory Auditors (SAs) of State and Central Co-operative Banks (StCBs/CCBs).

The guidelines will take effect on April 1, 2024, and banks must seek prior approval for the appointment of SAs by July 31 of the reference financial year.

The guidelines mainly focus on:

a) eligibility requirements. b) Review the performance of SAs. c) Auditors‘ independence; d) SA tenure and rotation.

The Guidelines are read as follows:

The Banking Regulation (Amendment) Act, 2020 (No. 39 of 2020), notified in the Gazette of India on September 29, 2020 (vide Notification No. 64 of that date), has come into force with effect from April 01, 2021 (Gazette Notification No. 4113 dated December 23, 2020), for Rural Co-operative Banks i.e., State Co-operative Banks (StCBs) and Central Co-operative Banks (CCBs)

As a result, in the exercise of its powers conferred under Section 30(1A) of the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) has framed the guidelines enclosed as an Annex to the Circular, which will be applicable to StCBs and CCBs seeking prior approval from the RBI for the appointment, re-appointment, or removal of Statutory Auditor (SA), as well as other related matters.

These guidelines will go into effect on April 1, 2024. As a result, for all accounting periods beginning on or after April 1, 2024, all StCBs and CCBs must submit an application for prior permission from RBI by July 31 of the reference accounting year, in accordance with the rules.

For Official Guidelines Download PDF Given Below: