RBI Issues Guidelines For Banks, NBFCs Over Statutory Auditors' Appointment

The Reserve Bank of India on April 27 announced a slew of measures regarding the appointment of statutory auditors in financial institutions including banks and NBFCs, effective from  FY 2021-2022. After this, the banks and NBFCs have to take a prior permission from the RBI before appointing any statutory auditor. Besides, the entities have to appoint the auditors for a minimum of three consecutive years.