Banking sector to support growth: RBI Deputy Governor

Mumbai, July 9

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The banking sector, which is at a decadal high in terms of financial parameters, is all set to support the growth of the Indian economy, Reserve Bank deputy governor Swaminathan J said on Tuesday.

Addressing a conference of statutory auditors and chief financial officers of commercial banks and all Indian financial institutions here, the deputy governor also said the Reserve Bank of India (RBI) has undertaken several initiatives to enhance the effectiveness of the auditing process.

These include structured meeting mechanisms between supervisory teams and auditors, introducing exception reporting, streamlining processes for the appointment of auditors, and other measures designed to safeguard the independence of auditors.

“Auditors must apply due rigour in their audit processes to mitigate any potential for divergence, under-provisioning, or non-compliance with statutory and regulatory requirements. Further, a critical aspect of the auditor’s role is the careful evaluation of internal financial controls over financial reporting.”