GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINACIAL SERVICES
UNSTARRED QUESTION NO-227
ANSWERED ON MONDAY, DECEMBER 4, 2023/AGRAHAYANA 13, 1945 (SAKA)
227. SHRI D.M. KATHIR ANAND
Will the Minister of FINANCE be pleased to state:-
(a) whether the Government has reduced the engaging of CA firms doing Concurrent Audit, Internal Audit and stock Audits in Nationalised Banks across the country and if so, the details thereof,
(b) whether the Reserve Bank and Public Sector Banks have decided not to have concurrent audit for Banks having turnover of less than Rs. 40 crone per year and if so, the details thereof; and
(c) the total number of CA firms engaged by the PSBs in the last 3 years, year-wise and Bank-wise?
ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(DR. BHAGWAT KARAD)
(a) The Government does not engage CA firms for doing Concurrent Audit, Internal Audit and stock Audits in Public Sector Banks.
In respect of concurrent audit, Reserve Bank of India (RBI) vide it's Circular dated September 18, 2019, has prescribed that banks should have their own Board approved policy coveting sections, including, inter-alit, the scope of work to be entrusted to concurrent auditors, coverage of business/branch. etc. Accordingly, banks are having their own board approved policy for concurrent audit. Further, Public Sector Banks (PSBs) are having their own board approved policy on scope and applicability of internal and stock audit.
(b) RBI has apprised that, they have not issued any instruction advising the PSBs not to have concurrent audit for Banks having turnover of less than Rs. 40 crone per year.
(c) As per information received from RBI, Year-wise and PSBs-wise details of the total number of CA firms engaged as Statutory Central Auditors (SCA) and Statutory Branch Auditors (SBAs), in the last 3 years are annexed: