THE MINISTER OF STATE IN THE MINISTRY OF FINANCE AND COMPANY AFFAIRS
(SHRI ANANDRAO VITHOBA ADSUL):
(a) and (b) The Reserve Bank of India (RBI) had issued guidelines relating to concurrent
audit to all scheduled commercial banks on 14th August, 1996. These guidelines include scope,
area, coverage of concurrent audit and guidelines on appointment of concurrent auditors.
As per extant guidelines, banks are given freedom to engage services of either their own
staff or external auditors for the purpose of concurrent audit. In case the bank has engaged
its own staff, they should be experienced, well trained, sufficiently senior and must be
independent of the branch where concurrent audit is conducted. Banks may appoint an external
audit firm for concurrent audit initially for one year and extended upto three years.
Thereafter, an auditor could be shifted to another branch subject to satisfactory performance.
(c) Data reporting system of RBI does not generate information in the manner called for.