RBI to hold quarterly meetings with banks' auditors, review governance

RBI to hold quarterly meetings from April 1 on NPAs, governance and fraud

In a first-of-its-kind move, the Reserve Bank of India (RBI) is set to hold formal meetings with banks' auditors on a quarterly basis from April 1, making sharper the regulatory spotlight on them. Now, these auditors won’t be able to claim they only get to have a post-facto and static view on banks’ financials. 

A classified communique from the RBI’s Department of Banking Supervision’s audit cell — marked to banks’ chief executives, compliance departments, and auditors — said the quarterly interaction would cover areas pertaining to income recognition, asset classification, systems to track borrowers, dud loans, governance and exceptions, suspicious