ICAI to train second-tier accountants

The Institute of Chartered Accountants of India (ICAI) has decided to launch a two-year course aimed at creating a second tier of accountants. Students who have cleared their Class 12 exam will be eligible for the programme, which aims at churning out 50,000 accountants who are familiar with basics like book-keeping and other subjects.

ICAI is awaiting government approval for the course, as it is a statutory body set up through an Act of Parliament. ICAI President Ved Jain said the course is likely to be launched this year itself. "We hope to get the necessary approval within three months from now," he added.

While the CA course is highly specialised and takes at least three-and-a-half years, the ICAI programme to develop second-tier accountants is aimed at filling the massive skill deficit in this field.

Around 20,000 CAs qualify every year and are in high demand in a growing economy like India. The fee for the new programme is likely to be around Rs 10,000, said Jain. In comparison, the fee for a CA course is around Rs 20,000.

Many a times, smaller enterprises may not necessarily want to retain a highly paid CA and can make do with people with a lower skill set. The move can have multiple benefits "" students will get a career option in accountancy, while companies can hire them at a lower cost.

The two-year programme will provide training to the students in accounting, business law, taxation, cost accounting and financial management accounting, among others. It will be followed by a year of industry training under a CA, in practice or employment.

Moreover, ICAI is planning to link this programme with the main CA course, whereby on completion of the programme, if the student wishes to pursue chartered accountancy, he can do so by appearing in the second part of the professional competence course straightway.