Deloitte to conduct special audit of Bank of Rajashan

The Reserve Bank of India (RBI) has tightened its grip on the working of Bank of Rajasthan (BoR) further by appointing two Deloitte entities to conduct special audit of the private sector bank’s books and accounts.

While Deloitte & Touche Consulting India will conduct special IS audit, Deloitte, Haskins & Sells will carry out special audit of its books and accounts. These entities were likely to complete the work in up to 45 days and submit the report for further action, a bank official said.

The central bank has already appointed a new chief executive and two RBI officers on the bank’s board after many instances of corporate governance violations came into light. It also has appointed two nominee directors.

In February 2010, it had imposed a Rs 25-lakh fine on the Jaipur-based private sector lender for violating regulations on five counts. The grounds for the fine are violating RBI directions on acquisition of immovable property, deletion of records in the bank’s IT system, non-adherence to know-your-customer (KYC) and anti-money laundering (AML) norms, irregularities in the conduct of accounts for certain corporate groups and failure to provide certain documents to RBI and misrepresenting that these documents were not available.