Auditors must report to RBI on deviations in regulated entities: Shaktikanta Das

Market confidence is key, relevant for banks that hold public deposits, says Das

Auditors have a duty to report directly to the Reserve Bank of India (RBI) on matters of material significance arising from the audit of banks and other regulated entities, central bank governor Shaktikanta Das said.

Highlighting that statutory auditors played a vital role in maintaining market confidence on audited financial statements, he said that in the banking industry, such a public role was particularly relevant for financial stability, given that banks hold public deposits.

He said in a globally integrated economy, fair and impartial audit was not just a domestic concern, but also an instrument to enhance the country’s reputation and credibility on a global stage.