RBI RBI Guidelines on Appointment of Statutory Auditors & Co-operative Banks

RBI Guidelines on Appointment of Statutory Auditors & Co-operative Banks

RBI Guidelines on Appointment of Statutory Auditors & Co-operative Banks

 

RBI Guidelines on Appointment / Re-appointment of Statutory Auditors of State Co-operative Banks & Central Co-operative Banks

The RBI Circular dated 15 January 2024 provides comprehensive guidelines on the appointment and re-appointment of Statutory Auditors for State Co-operative Banks  and Central Co-operative Banks. These guidelines are effective from April 1, 2024, and apply to accounting periods commencing on or after that date. Professional Development Committee of ICAI regarding the Draft Panel for Appointment/Re-appointment of Statutory Auditors for State Co-operative Banks and Central Co-operative Banks for FY 2025-26, based on the latest RBI guidelines:

Key Highlights of the RBI Circular RBI/2023-24/113, dated January 15, 2024 on Appointment / Re-appointment of Statutory Auditors of State Co-operative Banks & Central Co-operative Banks :

  • Legal Framework : Based on the Banking Regulation (Amendment) Act, 2020, which came into force for Rural Co-operative Banks on April 1, 2021. RBI invokes powers under Section 30(1A) of the Banking Regulation Act, 1949 to issue these guidelines.
  • Requirement of RBI’s Prior Approval : Mandatory for appointment, re-appointment, or removal of Statutory Auditors. Applications must be submitted before July 31 of the relevant financial year.
  • Use of MEF (Multipurpose Empanelment Form) : ICAI used the Multipurpose Empanelment Form panel for 2024–25 as the base. Categorization done as per RBI norms: Category A, B, and C audit firms.
  • Category Classification : Applicants may view their categorization as Category A, B, or C, as per the RBI’s eligibility norms for the appointment/re-appointment of Statutory Auditors of StCCBs and CCBs.
  • Audit Firm Selection Process : ICAI compiles and prepares the draft panel based on RBI eligibility norms. ICAI forwards the panel to NABARD. NABARD shares the list with banks. Banks select SAs only from this panel after obtaining prior RBI approval.
  • Grievance Redressal Mechanism : Observation/complaint window open till: June 7, 2025.
  • Draft Panel will remain available for review till June 7, 2025 : Draft Panel for Appointment / Re-appointment of Statutory Auditors of State Co-operative Banks (StCCBs) and Central Co-operative Banks (CCBs) for the financial year 2025–26 has been hosted on the official portal at 🔗 https://meficai.org . This draft panel has been prepared based on the Multipurpose Empanelment Form (MEF) for 2024–25, in accordance with the latest guidelines issued by the Reserve Bank of India (RBI) via Circular No. RBI/2023-24/113 dated January 15, 2024.
  • Post-Grievance Process : Final panel will be sent to NABARD after June 7, 2025, once all issues are resolved. Banks must not appoint or reappoint auditors without RBI approval. Appointment must comply with Tenure limits, Rotation policy, Cooling-off norms, Audit independence. ICAI reaffirms commitment to transparency and objectivity in SA appointments for the cooperative banking sector. 
  • Process Overview: NABARD will obtain a list of audit firms from ICAI, apply eligibility filters, and share the approved list with banks. Banks must select auditors from this list and submit proposals to RBI for approval.
  • Eligibility Criteria : Based on asset size as of March 31 of the preceding year, minimum requirements include:
  • Number of full-time partners.
  • Fellow Chartered Accountant (FCA) partners,
  • Qualified CISA / DISA / ISA professionals
  • Audit and statutory audit experience
  • Minimum professional staff (Refer to Appendix I for detailed matrix)
  • Tenure and Rotation :
  • Statutory Auditors appointed for 1 year, extendable up to 3 consecutive years.
  • Cooling-off period of 6 years after serving full/part tenure before reappointment in the same bank.
  • Independence and Conflict of Interest : Concurrent auditors or firms providing non-audit services within a year are disqualified.  No sub-contracting or shared audit assignments allowed. Auditors must report lack of cooperation from bank management.
  • Audit Limits : An audit firm can: Audit a maximum of 5 State Co-operative Banks or Central Co-operative Banks, with only 1 State Co-operative Banks. Not audit both State Co-operative Banks and CCB in the same State. The overall cap includes audits for Commercial Banks, NBFCs, UCBs, AIFIs, etc., as per 2021 SCA guidelines.
  • Audit Fee Guidelines : Fee to be reasonable and commensurate with size, risk, complexity, etc. Finalized by the Board / ACB of the bank.
  • Other Requirements: Bank must have a Board-approved audit policy. Language proficiency in the local language of the bank's region is preferred. SAs should be familiarized with RBI regulations before audit begins.
  • Forms & Documentation : Form B: Auditor’s eligibility certificate. Form C: Bank's certification of the auditor’s eligibility. Application to be sent to RBI’s DoS, along with board resolution and other annexures.
  • Grievance Redressal : In case of any observations or concerns regarding the draft panel, applicants may Submit queries or complaints online at: https://app.meficai.org/complaints Or contact the following officials: Ms. Priya Duggal / Ms. Garima Khurana – 92055 59866 or Mr. Manish Bhardwaj – 92055 59865
  • Complete RBI circular 

Disclaimer: The content of this post isn't considered to be professional or legal advice, We aren't responsible for any damages arising from your access to the location content & must not be relied on or used as a substitute for legal advice from a lawyer professional in your jurisdiction. CARajput is among India's big digital compliance services platform which committed to helping people have started & developed their businesses. We had started with the goal of creating it easier for start-ups to start out their business. Our main aim is to assist the businessman with applicable laws & regulations compliance and providing support at each & every level to make sure the business stays compliant and growing continuously. For any query, help or feedback you may in touch on singh@carajput.com or Call or what’s-up on 9-555-555-480

Share This Post

Related Articles

Related Videos


Meaning of Form FC-GPR Form | How it work and benefit | Procedure to file RBI Form FC-GPR

Meaning of Form FC-GPR Form | How it works and benefit | Procedure to file RBI Form FC-GPR

Published On: Feb 06, 2022 | By: RJA


What is form FC-TRS? | Who has to file Form FC-TRS? | When FC-TRS is required to be filed?

What is form FC-TRS? | Who has to file Form FC-TRS? | When FC-TRS is required to be filed?

Published On: Jan 17, 2022 | By: RJA

Need help?

Request a call
from a RJA
Business Advisor.

LET'S TALK

Private Limited Company

Popular Categories

Browse Blogs

Recent Posts

Proposed 5% united nation of america remittance tax on non-citizens,

Proposed 5% united nation of america remittance tax on non-citizens,

CPE Hours Applicability 4 level: CPE Non-Compliance Consequence Level

CPE Hours Applicability 4 level: CPE Non-Compliance Consequence Level

ICAI Caps Tax Audits at 60 Per Partner Annually from FY 2026–27

ICAI Caps Tax Audits at 60 Per Partner Annually from FY 2026–27

Key Highlights IBBI Notifies 4th Amendment to CIRP Regulations

Key Highlights IBBI Notifies 4th Amendment to CIRP Regulations

CA Members' Completion ICAI compliance of CPE hours Year ended 2024

CA Members' Completion ICAI compliance of CPE hours Year ended 2024

Connect with a RJA Advisor

Fields marked with an * are required

Enquire Us

Please send us your query and we feel very happy helping you

Testimonials

  • Thank you very much for all your help in setting up my new company and clearing up all outstanding business in my sole trader accounts. For the first time in years I have peace of mind regards my business accounts. Your workforce are a credit to you, the girls at reception are so helpful and Chris has been brilliant. It is very much appreciated.

    A US consultancy group

  • Rajput Jain & Associates. are a tremendous value added to me as an executive and a busy parent. It just makes sense to delegate my tax file to them -- they are proactive, extremely service oriented, and most importantly, I am completely confident they are finding every dollar of tax savings available to me.

    A Leading Service Provider

  • We use Rajput Jain & Associates for all our accounting, Corporation tax, VAT and other compliance needs. The service is professional, courteous and prompt. I would recommend Rajput Jain & Associates to any company requiring a comprehensive accounting and tax service.

    A Leading Consultancy Firm in Dubai

Money Back Guarantee

Not happy with the service? You can request a refund at anytime within 30 days!

24/7 Support

Get support through phone, email, mobile app or live chat - 24/7, 365 days.

EMI Payment

Easily pay online with EMI payments, credit or debit card, net banking, PayPal and more.

Get In Touch--

Rajput Jain & Associates

Add: P-60, Connaught Circus, Connaught Place, New Delhi-110001

Email: singh@carajput.com

Phone: 9555555480

Legal Disclaimer--

The information contained on this website merely provides details of our firm to persons who have shown interest in knowing more about us and is not intended to solicit work or advertise our capabilities in any manner. The information provided on this website is general in nature and should not be used as a basis of decision-making without further professional advice. The third party site links are only provided for ready reference of the users and CA Rajput Jain & Associates neither controls their content nor undertakes any responsibility regarding them.

© 2016 Rajput Jain & Associates. All Rights Reserved | Sitemap

Call Email