The Office of the Central Registrar of Cooperative Societies (CRCS) has issued a corrigendum to its order dated April 30, 2026, introducing significant changes to the statutory audit framework for Multi-State Cooperative Banks (MSCBs).
The corrigendum revises Paragraph 1(i) of the original order governing the appointment of statutory auditors. Earlier, MSCBs were required to appoint auditors from the panel approved or empanelled by the Reserve Bank of India (RBI) for Commercial Banks and Urban Cooperative Banks (UCBs).
Under the revised provision, audit firms must now be selected from among those fulfilling the eligibility criteria prescribed by the RBI from time to time for the appointment of statutory auditors of Urban Cooperative Banks.
The amendment shifts the requirement from selection based on an RBI-approved or empanelled panel to selection from among audit firms fulfilling the eligibility criteria prescribed by the RBI for appointment as statutory auditors of Urban Cooperative Banks.
Another major change is the insertion of a new Clause 2(viii), which mandates that Multi-State Cooperative Societies and Banks appoint the same statutory auditor or audit firm for a continuous period of three years. The tenure will continue as long as the auditor remains eligible under the RBI’s prescribed criteria and continues to remain empanelled.
The corrigendum also provides that if an auditor or audit firm ceases to fulfil the prescribed eligibility criteria or is no longer empanelled during the tenure, the Multi-State Cooperative Society or Bank may appoint another eligible auditor or audit firm without requiring prior approval of the Central Registrar of Cooperative Societies.
However, if a Multi-State Cooperative Society or Bank intends to replace its statutory auditor or audit firm during the three-year tenure for any reason other than loss of eligibility or empanelment, it must obtain prior approval from the Central Registrar of Cooperative Societies.
The Ministry of Cooperation has clarified that all other provisions of the order dated April 30, 2026, including the notified audit panels and other audit-related conditions, will remain unchanged. The corrigendum has been issued with the approval of the Central Registrar of Cooperative Societies.
