Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul><li>The <keyword id="6354335" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> is beginning to execute its enforcement framework announced in 2018 that brought non-banking financial companies (NBFC) under tighter scrutiny.</li><li>Under this framework, the central banker has barred <keyword id="4532818" type="General" weightage="20" keywordseo="haribhakti-co-llp" source="Orion">Haribhakti &amp; Co LLP</keyword> from auditing any entities regulated by the bank – this includes banks and NBFCs.</li><li>Earlier, <keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword> had banned EY member firm <keyword id="1921391" type="General" weightage="20" keywordseo="sr-batliboi-co" source="Orion">SR Batliboi &amp; Co</keyword> for one year for lapses in its statutory audit of specific banks.</li></ul>India’s central bank, the Reserve Bank of India (RBI), banned Haribhakti &amp; Co LLP, an audit firm, from undertaking any audits of banks, non-banking financial companies and other entities regulated by the RBI for a period of two years. “This action has been taken on account of the failure on the part of the audit firm to comply with a specific direction issued by RBI with respect to its statutory audit of a Systemically Important Non-Banking Financial Company (NBFC),” RBI said in a press release on Tuesday. The ban on Haribhakti &amp; Co LLP is amongst the first few under the RBI’s enforcement action framework for statutory auditors, <a href="https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=44357">announced in June 2018</a>, which has provisions to debar audit firms which have “serious” lapses in their audits of banks. The central bank’s release underlines that the auditors in question have not complied with a specific direction under this framework. According to the press release, Haribhakti &amp; Co LLP will not be allowed to audit any entity that is regulated by the RBI. This ban comes into effect from April, 2022 and will be in force for two years. The auditors will be allowed to complete their existing audit assignments in the financial year 2021-22. In this case, RBI has not specified the “systemically-important” NBFC. As of 2019, there were 275 such entities and the list includes the likes of Bajaj Finance and Bajaj Finserv, Shriram Transport Finance, Power Finance Corporation, among others. Some of the companies that have been audited by Haribhakti &amp; Co LLP include Birla Sunlife AMC, Axis Bank, IndusInd Bank and <a href="https://www.businessinsider.in/finance/news/rbi-has-taken-two-srei-companies-out-of-board-control-after-payment-defaults/articleshow/86754390.cms">SREI</a> Infrastructure Finance as well as SREI Equipment Leasing. <div type="Video" msid="86962810" hostid="261" title="The vicious circle behind bad loans. Should banks be revealing the names of the big loan defaulters?" thumbUrl="https://denmark.timesinternet.in/cmslite/api/app/images.jpg?msid"><payload><![CDATA[Banks blame ratings agencies who blame auditors who in turn blame the banks, the vicious circle behind bad loans]]></payload></div> It is worth noting that this is not the first action that RBI has taken against auditors. Earlier, it had banned SR Batliboi &amp; Co., one of the top auditors in the country and a partner of global audit firm Ernst &amp; Young (EY), for lapses in its statutory audit of banks. <a href="https://www.business-standard.com/article/companies/rbi-bars-ey-group-s-batliboi-from-auditing-bank-books-for-one-year-119060301662_1.html">Reports</a> at the time suggested the banks were Yes Bank and Axis Bank, and the lapse was in not correctly identifying the non-performing assets of the banks to the tune of over ₹13,500 crore. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/its-not-just-zostel-oyo-has-20-other-lawsuits-to-fight/articleshow/86959438.cms">It's not just Zostel, OYO has 20 other lawsuits to fight</a> <a href="https://www.businessinsider.in/tech/enterprise/news/infosys-may-beat-tcs-earnings-even-with-lower-deal-wins-in-september-quarter/articleshow/86952606.cms">Infosys may beat TCS earnings even with lower deal wins in September quarter</a> <a href="https://www.businessinsider.in/policy/legal/news/cloud-kitchens-are-restaurants-ice-cream-is-not-food-and-other-important-clarifications-that-will-affect-gst-rates/articleshow/86841614.cms">Cloud kitchens are restaurants, ice cream is not food and other important clarifications that will affect GST rates</a>

RBI has barred one of the country's top auditors from looking at the books of any company regulated by the central bank

In a major supervisory action, the <keyword id="50847" type="CITY" weightage="20" keywordseo="Reserve-Bank">Reserve Bank</keyword> on Wednesday indefinitely barred the US-based <keyword id="6368201" type="UNKNOWN" weightage="20" keywordseo="mastercard">Mastercard</keyword> from issuing new credit, debit and prepaid cards with effect from July 22 for its failure to comply with data storage norms. Mastercard, a major card issuing entity in the country, is the third company to have been barred by <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> from acquiring new customers after American Express Banking Corp and Diners Club International over data storage issue. "The <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (RBI) has today imposed restrictions on Mastercard Asia/Pacific Pte. Ltd. (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from July 22, 2021," the central bank said in a statement. The RBI, however, clarified that its supervisory action will not impact the services of the existing customers of Mastercard in the country. Announcing the ban on Mastercard, RBI said, "notwithstanding lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on <keyword id="11147827" type="UNKNOWN" weightage="20" keywordseo="Storage-of-Payment-System-Data">Storage of Payment System Data</keyword>". Mastercard is a payment system operator authorised to operate a card network in the country under the Payment and Settlement Systems Act, 2007 (PSS Act). In terms of RBI's circular on Storage of Payment System Data on April 6, 2018, all system providers were directed to ensure that within a period of six months the entire data relating to payment systems is stored only in India. They were also required to report compliance to RBI and submit a board-approved <keyword id="11639727" type="UNKNOWN" weightage="20" keywordseo="system-audit-report">System Audit Report</keyword> conducted by a CERT-In empanelled auditor within specified timelines. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/infosys-is-worried-about-losing-its-it-talent-to-indias-unicorns/articleshow/84411946.cms">Infosys has a new headache -- India’s unicorn boom</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/zomato-ipo-subscription-status/articleshow/84409991.cms">Zomato IPO oversubscribed by 105% on day one</a>

RBI bars Mastercard from issuing new cards from July 22

The Comptroller and <keyword id="2088691" type="UNKNOWN" weightage="20" keywordseo="Auditor-General-of-India">Auditor General of India</keyword> (<keyword id="6356851" type="CITY" weightage="20" keywordseo="CAG">CAG</keyword>) plans to audit the impact of note ban and the affect it has had on government tax revenues, said <keyword id="1925426" type="UNKNOWN" weightage="20" keywordseo="CAG-Shashi-Kant-Sharma">CAG Shashi Kant Sharma</keyword>, according to <keyword id="6367495" type="COMPANY" weightage="20" keywordseo="PTI">PTI</keyword>. 
 In an interview to PTI, he said the auditor is gearing up to audit tax revenues under the new Goods and <keyword id="645517" type="COMPANY" weightage="20" keywordseo="services-tax">Services Tax</keyword> (GST) regime and has started capacity building and reorienting its audit methodology and procedures. 
 Among the special audits, CAG has already completed audit of agricultural crop insurance scheme and flood control and flood forecasting and is now engaged in several important audits like Right to Education, National Rural Health Mission, defence pensions and <keyword id="2259162" type="UNKNOWN" weightage="20" keywordseo="Ganga-rejuvenation">Ganga Rejuvenation</keyword>, he said. "These reports should be ready by the end of the current year." 
 <keyword id="445" type="PERSON" weightage="20" keywordseo="Sharma">Sharma</keyword> asserted that CAG has audit jurisdiction over any body or authority which has any relation to government revenues and expenditure and resistance by some like city development bodies, DISCOMs and metro corporations will wither away. 
 
"We plan to audit certain issues related to fiscal impact of demonetisation, largely its impact on tax revenues," he said. 
 
The government had withdrawn old 500 and 1,000 rupee notes from circulation on November 8 last year, and announced a new tax amnesty scheme for those holding unaccounted junked currency. 
 
CAG audit may look into expenditure on printing of notes, RBI dividend payout and banking transaction data. 
 The auditor has also conveyed to the government its stand on the recent move of the <keyword id="6355040" type="ORGANIZATION" weightage="20" keywordseo="GST-Council">GST Council</keyword> to delete section 65 of the preliminary draft that authorised CAG to audit GST. 
 
"Our mandate covers GST just like the earlier taxation regimes were covered. We have already started work on restructuring of our revenue audit arrangements to methis likely challenge when GST is introduced. 
 
"This exercise would include issues of capacity building, data access and analysis, reorientation of audit methodology and procedures and developing end-to-end IT solutions," he said. 
 
Sharma said executive, legislature, judiciary and audit have clearly demarcated roles and responsibilities. 
 
"The framers of our Constitution were fully aware of the concept of checks and balances and hence you find the mention of Judiciary and CAG in the fifth part of the Constitution along with legislature and executive," he said. "The CAG's DPC Act of 1971 provides the details of the mandate and scope of audit available to us." 
 
Stating that there are no lacunae in CAG's empowerment but with advent of time, the governance models have undergone changes. 
 The September 2014 judgement of the <keyword id="6354977" type="ORGANIZATION" weightage="20" keywordseo="Supreme-Court">Supreme Court</keyword> in the telecom case "reinforced an important principle that wherever public resources are being used by private companies for revenue generation, CAG will have a duty to examine as to whether the government is getting due share of such revenue," he said. 
 
"So, I can say that the bodies and authorities which have any relation to government revenues and expenditure are under the audit jurisdiction of CAG," he said. 
 
City development bodies, electricity distribution companies and metro corporations "resist" CAG audit on the ground of being autonomous or on the ground of getting no support of the government although they perform the functions which were earlier being performed by the government departments, he said. 
 
"I believe the situation will settle down with passage of time and such resistance will wither away," he added.

Demonetization – profit or
loss? Let CAG deconstruct it

<ul><li>Total exposure of Indian banks in the alleged fraud is approximately Rs 20,000 crore</li><li><keyword id="6355975" type="COMPANY" weightage="20" keywordseo="axis-bank">Axis Bank</keyword> has an exposure of Rs 20-30 billion, <keyword id="6358005" type="COMPANY" weightage="20" keywordseo="allahabad-bank">Allahabad Bank</keyword> has Rs 40 billion and SBI, Rs 13 billion. </li><li>As a result of the scam, the Reserve Bank of India (RBI) decided to ban LoU-based transactions on March 13.</li></ul> <keyword id="62034" type="CITY" weightage="20" keywordseo="Punjab-National-Bank">Punjab National Bank</keyword> (PNB) has five days to honour its guarantees to the <keyword id="63524" type="CITY" weightage="20" keywordseo="Union-Bank-of-India">Union Bank of India</keyword> to the tune of Rs 10 billion. If it fails to do so, Union Bank, in an unprecedented move, will have no option but to consider PNB a defaulter in its books and may even have to classify the unpaid amount as a non-performing asset (NPA) based on the recommendations of its auditors. Both banks are state-owned and if this default happens, it could shake the foundation of the banking sector leading to both the people and international banking institutions losing faith in the banking system. The only way this can be avoided is if the government or the RBI swoop in and bail PNB out. All this stems from the <keyword id="571991" type="ORGANIZATION" weightage="20" keywordseo="Nirav-Modi">Nirav Modi</keyword> case which involves fraudulent letters of undertaking (<keyword id="368886" type="PERSON" weightage="20" keywordseo="Lou">LoU</keyword>). And though this matter is being investigated by government agencies, Union Bank contests that there is no fraud in its books. Rajkiran Rai, MD of Union Bank told the <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/pnb-may-become-1st-bank-to-be-labelled-as-defaulter/articleshow/63459075.cms">Economic Times</a>, “For us, it is a genuine claim on PNB backed by documents. It is not a fraud in our books... We will take the auditor’s view. However, we don’t want to list PNB as a defaulter. We are expecting some intervention from either the government or RBI so that there is a resolution by March 31.” LoUs are essentially a tool used between Indian banks as guarantees under which customers of one bank can raise money from the other Indian bank's foreign branch in the form of a short-term credit arrangement, typically 90 days long. In the case of Nirav Modi and Mehul Choksi scam, the total exposure of Indian banks in the alleged fraud is approximately Rs. 20, 000 crore--almost twice the initial estimate. According to <a href="http://www.business-standard.com/article/finance/in-5-days-pnb-may-be-first-bank-to-get-defaulter-tag-due-to-nirav-modi-118032600248_1.html" data-type="tilCustomLink">Business Standard</a>, apart for Union Bank of India, <a class="storyTags" href="http://www.business-standard.com/search?type=news&amp;q=axis+bank" target="_blank">Axis Bank </a>has an exposure of Rs 20-30 billion, <a class="storyTags" href="http://www.business-standard.com/search?type=news&amp;q=allahabad+bank" target="_blank">Allahabad Bank </a>has Rs 40 billion and SBI, Rs 13 billion. As a result of the scam, the Reserve Bank of India (RBI) decided to ban LoU-based transactions on March 13. However, this move has raised concerns with a bunch of bankers. Asked if the RBI decision is an overreach action by the <a href="https://economictimes.indiatimes.com/news/economy/policy/policymakers-need-to-be-careful-sanyal-on-lou-ban/articleshow/63302747.cms">Economic Times</a>, the Finance Ministry's Principal Economic Advisor Sanjeev Sanyal said, "I am not in a position to comment on RBI decision they have just introduced… But, the general point remains that you have to take a nuanced view of these things in particular because you are not dealing with a silo system. You are dealing with an inter-connected ecosystem and if you block off oxygen in one part it rapidly spreads to rest of the system.”

You Searched For "RBI bans auditors" and got 4 results

RBI has barred one of the country's top auditors from looking at the books of any company regulated by the central bank

Rounak Jain

RBI bars Mastercard from issuing new cards from July 22

PTI

Demonetization – profit or loss? Let CAG deconstruct it

BI India Bureau

PNB might become first bank to get 'defaulter' tag in 5 days

Kavita Majumdar

Popular Keywords

Buying Guides