RBI asks bank auditors to have a stringent monitoring process

The Reserve Bank of India (RBI) has asked banks to adopt a more stringent auditing process to ensure that review of financial results and identification of fraud is done more promptly. There is a greater need to take a closer look into the asset quality, instances of restructuring of advances, provisioning held, etc. with regard to asset classifications and provisions held. Audit Committee Boards (ACBs) should take upon themselves to monitor the trend of frauds, assimilate key learning and ensure that mitigation measures are put in place by the management.