| Date: |
21-10-2002
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| Notification No: |
RBI Notification No 33/2002
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| Issuing Authority: |
RBI
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| Type: |
Notification
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| File No: |
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| Subject: |
Certification of Borrower's Account by Chartered Accountants
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|
Certification of Borrower's Account by Chartered Accountants
DBOD.
No. BP. BC. 33 - 21.04.018 - dated 21st October 2002
Please
refer to our circular DBOD No. CAS (COD) BC.146/27-77 dated December 22, 1977 on
the requirement of audit of annual accounts of all borrowers having credit limit
of Rs. 10 lakh and above from the banking system, by Chartered Accountants. It
is observed that audit of the accounts of borrowers would continue to contribute
to strengthening their accounting systems and would also serve the interests of
the financing banks. After issuance of the above guidelines, there has been
manifold expansion of bank credit. Further, RBI has introduced prudential norms
and risk management guidelines. It has, therefore, been decided that Boards of
each bank may fix a suitable cut off limit with reference to the borrowing
entity's overall exposure on the banking system, over which audit of accounts of
borrowers by Chartered Accountants would be mandatory.
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