(a) whether All India Bank Employees Association suggested to the Government to constitute
independent Banking Audit Commission on lines with Comptroller and Auditor General (C&AG)
in order to identify the areas of weakness that led to creation of growing number of Non Performing Assets (NP As) accounts in the nationalised banks;
(b) if so, the details of the proposal made; and
(c) the reaction of the Government thereto?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANANTG. GEETE)
(a) & (b) Yes, Sir. All India Bank Employees Association, Kolkata made a suggestion that an independent `Banking Service Audit Commission` should be
setup on the lines of Comptroller and Auditor General of India.
(c):An elaborate system of appointing statutory auditors in public sector banks has been
evolved by RBI/Central Government over` a period of time. RBI has set up a sub-committee
(Audit) under the aegis of the Board of the Financial Supervision which formulates policy
governing the audit and lays down norms for the empaneJment of Statutory Auditors. Thereafter
Standing Advisory Committee finalises a panel of statutory auditors to be appointed in
banks out of the list of eligible audit t`ini1s received from the office of Comptroller
& Auditor General and Institute of Chartered Accountants of India. As the existing audit
system is quite adequate, there appear to be no need for setting up of separate Banking
Service Audit Commission.