“These guidelines will also help in streamlining the procedure for appointment of statutory auditors across all the regulated entities and ensure that appointments are made in a timely, transparent and effective manner,” the RBI said.
The new regulations are aimed at improving the quality and standards of audit in RBI regulated entities, said the regulator.
The RBI also clarified that if an audit firm is engaged for business activities by group entities not regulated by the central bank, it would be the responsibility of the board of the RBI regulated entity to ensure that there is no conflict of interest and independence of auditors is ensured.
The RBI had recently said that it had received multiple representations from various stakeholders and it was in the process of examining those and would issue clarifications.