RBI framework for risk-based internal audit of NBFCs, UCBs
The new framework will be applicable to all deposit taking NBFCs, all non-deposit taking NBFCs with asset size of Rs 5,000 crore and above, and all UCBs with asset size of Rs 500 crore and above.
- Feb 3, 2021,
- Updated Feb 5, 2021 3:27 PM IST
The Reserve Bank on Wednesday released the guidelines for risk-based internal audit (RBIA) for NBFCs and urban co-operative banks.
The RBIA guidelines aim to align the requirements of internal audit of Non-Banking Finance Companies (NBFCs) and Primary (Urban) Co-operative Banks (UCBs) with those for Scheduled Commercial Banks (SCBs), and its adoption will help in enhancing the quality and effectiveness of internal audit system of these entities, the Reserve Bank of India (RBI) said.
The new framework will be applicable to all deposit taking NBFCs, all non-deposit taking NBFCs (including Core Investment Companies) with asset size of Rs 5,000 crore and above, and all UCBs with asset size of Rs 500 crore and above. They will have to implement the RBIA framework by March 31, 2022.
"RBIA should undertake an independent risk assessment for the purpose of formulating a risk-based audit plan which considers the inherent business risks emanating from an activity/location and the effectiveness of the control systems for monitoring such inherent risks," the central bank said in a circular.
RBI cancels license of Kolhapur's Shivam Sahakari Bank due to inadequate capital
The Reserve Bank on Wednesday released the guidelines for risk-based internal audit (RBIA) for NBFCs and urban co-operative banks.
The RBIA guidelines aim to align the requirements of internal audit of Non-Banking Finance Companies (NBFCs) and Primary (Urban) Co-operative Banks (UCBs) with those for Scheduled Commercial Banks (SCBs), and its adoption will help in enhancing the quality and effectiveness of internal audit system of these entities, the Reserve Bank of India (RBI) said.
The new framework will be applicable to all deposit taking NBFCs, all non-deposit taking NBFCs (including Core Investment Companies) with asset size of Rs 5,000 crore and above, and all UCBs with asset size of Rs 500 crore and above. They will have to implement the RBIA framework by March 31, 2022.
"RBIA should undertake an independent risk assessment for the purpose of formulating a risk-based audit plan which considers the inherent business risks emanating from an activity/location and the effectiveness of the control systems for monitoring such inherent risks," the central bank said in a circular.
RBI cancels license of Kolhapur's Shivam Sahakari Bank due to inadequate capital