What changed
RBI has consolidated multiple circulars into one comprehensive calendar of reviews for the Audit Committee of the Board (ACB). The calendar outlines the critical minimum requirements, replacing earlier piecemeal instructions. Banks retain discretion to add more reviews as needed.
What it means for you
Banks must now ensure their ACB reviews cover the full consolidated list, including quarterly checks on sensitive sectors, KYC/AML compliance, housekeeping, and frauds. This streamlines compliance and ensures no critical review is missed. ACBs must also closely monitor concurrent, internal, and statutory audit work, and take an active role in statutory auditor appointments.
What you must do
- Update your ACB charter to include all reviews listed in the consolidated calendar.
- Ensure quarterly reviews cover exposure to sensitive sectors, KYC/AML, housekeeping, and frauds above Rs. 1 crore.
- Assign ACB to monitor concurrent, internal, and statutory audit work and compliance with RBI inspection findings.
- Prepare for half-yearly reviews of Ghosh and Jilani committee report status and internet banking phishing frauds.
- Conduct annual reviews of accounting policies, related party transactions, internal audit adequacy, and risk management policies.
Who it affects
All Indian commercial banks, Audit Committees of the Board, Internal audit departments, Statutory auditors, Compliance teams
What is the key change in this circular?
RBI has consolidated all previous ACB review requirements into one comprehensive calendar, making it easier for banks to ensure they cover all mandatory reviews.
Can banks add more reviews beyond the calendar?
Yes, the calendar outlines critical minimum requirements, and bank Boards have discretion to prescribe additional reviews to suit their needs.
What quarterly reviews are now mandatory?
Quarterly reviews must cover exposure to sensitive sectors (capital market & real estate), KYC/AML compliance, housekeeping (suspense/sundry accounts), and frauds of Rs. 1 crore and above.