#Govt #Banks get autonomy to #appoint #auditor The government today said public sector banks (PSBs) will get autonomy in selection and appointment of their Statutory Central Auditors (#SCAs). The work of selection and appointment of SCAs henceforth, has been delegated to individual PSBs for the year 2014-15 onwards, the finance ministry said in a statement today. The Reserve Bank of India (RBI) will provide the selection criteria for selecting SCAs to PSBs. The office of Comptroller & Auditor General (#CAG) will provide the list of eligible auditors available with them and #PSBs can make selection out of the list with the prior approval of #RBI. Currently, auditors are being appointed by a panel headed by Additional Secretary of Department of Financial Services, Chairman Indian Banks Association (#IBA) and representative of CAG. So, there is no representation from the bank. The number of statutory auditors varies depending based on the size of the balance sheet of a bank. For example, State Bank of India had 14 statutory auditors for 2013-14, while Punjab National Bank had six and United Bank of India had four. According to officials, the purpose behind changing the criteria was to have a smooth audit and give autonomy to banks as currently they are facing some issues with the auditors.
Posted on: Sat, 29 Nov 2014 11:04:42 +0000