RBI unveils inner audit norms for NBFCs, city co-op banks

Mumbai, February 3

The RBI on Wednesday unveiled the risk-based internal audit (RBIA) system for select non-bank lenders and urban co-operative banks, with a view to enhance the quality and effectiveness of their internal audit system.

Strengthening risk management

  • Currently, all entities supervised by the RBI have their own approaches on internal audit, resulting in certain inconsistencies, risks and gaps in the system, the RBI said

All the deposit-taking non-banking financial companies (NBFCs) and the ones with an asset size of over Rs 5,000 crore, and urban co-operatives banks (UCBs) with assets of over Rs 500 crore will have to migrate to the new system, the RBI said.

The central bank said the RBIA is an audit methodology that links an organisation’s overall risk management framework. It provides an assurance to the Board of directors and the senior management on the quality and effectiveness of the organisation’s internal controls, risk management and governance-related systems and processes, it added. — PTI

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