Faced with the prospect of loss of assignments, the auditing community is seeking a review of RBI's recent decision to waive statutory audits for public sector bank branches that lend below Rs 5 crore annually. Hitherto, the audit waiver was applicable only for branches with total advances of Rs 1 crore and below.
The communiqu on the revision in limits have been sent directly to the PSBs, sources familiar with the development said. "We will approach the Reserve Bank of India and the Government for review of this move," said Mr Sunil Talati, President of the Institute of Chartered Accountants of India (ICAI).
ICAI's professional development committee Chairperson, Ms Bhavna Doshi, said that the institute would now work closely with the RBI and the Government to see how best the members' interests could be protected.
Sources, however, maintained that 80-85 per cent of the banking system would still come under statutory audit even after the latest revision in the limit.