RBI enhancing audit process for FIs

New Delhi: As India aims to become the world’s third largest economy soon, the banking sector is undergoing a decade-high performance in financial metrics, according to Swaminathan J, Deputy Governor of the Reserve Bank of India (RBI).

According to him, the central bank is busy improving the auditing process to safeguard the integrity and stability of financial institutions.

“Auditors and chief financial officers are key pillars of financial integrity and governance in our banking system. Auditors must apply due rigor in their audit processes to mitigate any potential for divergence, under-provisioning, or non-compliance with statutory and regulatory requirements,” said Swaminathan at a conference in Mumbai.

Swaminathan said that the RBI has introduced structured meetings between supervisory teams and auditors, exception reporting, and streamlined auditor appointment processes.