RBI to intensify scrutiny of bank auditors after governance lapses

With governance concerns at IndusInd and Karnataka Bank, RBI is expected to tighten its engagement with statutory auditors and examine the role of board sub-committees more closely

The Reserve Bank of India (RBI) is expected to turn the knob on statutory auditors of banks, and by extension, on the role of their audit committees.

 

Senior sources in the bank auditing fraternity are of the view that with governance issues cropping up in two banks all at once, the RBI is to intensify its engagement with them. The reference here is to IndusInd Bank and Karnataka Bank, where the top two corner-room occupants in both banks stepped down in quick succession. This is also in line with Mint Road’s senior supervisory managers asking questions on bank