The Reserve Bank of India (RBI) has issued comprehensive guidelines for the appointment and re-appointment of Statutory Auditors (SA) for State Co-operative Banks (StCBs) and Central Co-operative Banks (CCBs). This move comes in response to the Banking Regulation (Amendment) Act, 2020 (No. 39 of 2020), which became effective on April 1, 2021, impacting Rural Co-operative Banks.
In accordance with the amendments outlined in the Act, RBI, utilizing its authority under Section 30(1A) of the Banking Regulation Act, 1949, has formulated guidelines addressing the process of appointing, re-appointing, or removing Statutory Auditors and other related matters.
The guidelines, enclosed in the Circular’s Annex, are applicable to StCBs and CCBs, necessitating prior approval from RBI for SA-related decisions. The regulatory measures aim to enhance transparency and accountability in the audit process of co-operative banks.
Effective from April 1, 2024, these guidelines require StCBs and CCBs to submit applications for RBI’s prior approval before July 31 of the respective accounting year for all periods commencing on or after April 1, 2024.
This regulatory development signals a significant shift in compliance procedures for co-operative banks, ensuring a smoother transition and fostering a transparent audit process. Stakeholders are urged to familiarize themselves with the guidelines to ensure seamless adherence.
For further information or clarification, stakeholders can reach out to RBI officials who are available to assist in the implementation of these guidelines.
Stay tuned for more updates on this regulatory development.
Sir Baranagar urban co operative Bank Under lequditaon 2015 15 January.Problem sir Bad Management and NPA bad loan.. Waching this Bank.