On june 12th 2013 ICAI in press Release clarified that the present Limit for Statutory Bank Branch Audit is still Rs. 20 Crore and not 50 Crore. This is to inform that concerted and Strategized efforts are being made to convince the Government to reduce the limit to 6 Crore, in Public Interest.
This has been clarified because
On June 2nd 2013 ICAI raises concern over higher limit for bank branch audits
"Our apprehension is that this is not good for the health of the banks," ICAI President Subodh Kumar Agrawal told PTI.
The Institute of Chartered Accountants of India (ICAI) is already in discussions with the Finance Ministry to lower the threshold limit.
Agarwal said: "Audit is a very big check and is a deterrent to the wrong doers and by audit, the non-compliance of things come to the fore.
"So, in my view, the government needs to reconsider the limit which has been scaled up to Rs 20 crore and again bring it down to Rs 6 crore."
In 2007, the limit was raised to Rs 3 crore and in 2011-12, the limit was raised to Rs 6 crore. After one year the same was again hiked to Rs 20 crore.
When asked about the recent Cobrapost expose that revealed alleged violations of norms by some banks, the ICAI chief said the overall system needs to be improved from time to time.
"The Cobrapost thing has brought to the fore some leakages in the system," he added.
On 25th January 2013 CA.Amarjit Chopra informed that
Today past president ICAI CA.Amarjit Chopra informed that,
List of various firms to be allotted statutory branch auditors by banks has been forwarded to banks by RBI yesterday with threshold limit as 20 crores.Number of branch audits to come down drastically
Further, I've talk to couple of Council members in this regard. They have also confirmed this news.
The news was known to Council members before 20 days. However, we became aware about this only because of communication from CA.Amarjit Chopra.
It was learnt that, the matter is went too much ahead now, as the list were already forwarded by RBI.
The Council members are trying to reduce the limit as it was successfully done last year.
However, this time its too much late and there are very less possibilities to change/reverse this decision.
This has been clarified because
On June 2nd 2013 ICAI raises concern over higher limit for bank branch audits
"Our apprehension is that this is not good for the health of the banks," ICAI President Subodh Kumar Agrawal told PTI.
The Institute of Chartered Accountants of India (ICAI) is already in discussions with the Finance Ministry to lower the threshold limit.
Agarwal said: "Audit is a very big check and is a deterrent to the wrong doers and by audit, the non-compliance of things come to the fore.
"So, in my view, the government needs to reconsider the limit which has been scaled up to Rs 20 crore and again bring it down to Rs 6 crore."
In 2007, the limit was raised to Rs 3 crore and in 2011-12, the limit was raised to Rs 6 crore. After one year the same was again hiked to Rs 20 crore.
When asked about the recent Cobrapost expose that revealed alleged violations of norms by some banks, the ICAI chief said the overall system needs to be improved from time to time.
"The Cobrapost thing has brought to the fore some leakages in the system," he added.
On 25th January 2013 CA.Amarjit Chopra informed that
Today past president ICAI CA.Amarjit Chopra informed that,
List of various firms to be allotted statutory branch auditors by banks has been forwarded to banks by RBI yesterday with threshold limit as 20 crores.Number of branch audits to come down drastically
Further, I've talk to couple of Council members in this regard. They have also confirmed this news.
The news was known to Council members before 20 days. However, we became aware about this only because of communication from CA.Amarjit Chopra.
It was learnt that, the matter is went too much ahead now, as the list were already forwarded by RBI.
The Council members are trying to reduce the limit as it was successfully done last year.
However, this time its too much late and there are very less possibilities to change/reverse this decision.