CA Audit Norms On Loans Eased

Mumbai, October 23: | Updated: Oct 24 2002, 05:30am hrs
The Reserve Bank of India (RBI) has allowed bank boards to fix a limit over which audit of accounts of borrowers by chartered accountants (CAs) would be mandatory. The audit is basically to ascertain a banks exposure to a particular customer.

As per the notification issued by RBI on December 22, 1977, banks were required to get the certificate of audit of annual accounts of all borrowers having credit limit of Rs 10 lakh and above from the banking system by CAs.

RBI, in the circular issued on Wednesday, said, After issuance of the above guidelines, there has been manifold expansion of bank credit. Further, RBI has introduced prudential norms and risk management guidelines.