The RBI releases the schedule for the appointment and reappointment of statutory auditors for central and state cooperative banks.

Dated: January 15, 2024, Circular No. RBI/2023-24/113 Ref.No.DOS.ARG/SEC.8/08.91.001/2023-24 Guidelines for the appointment of Statutory Auditors (SAs) of State and Central Co-operative Banks (StCBs/CCBs) have been released by the RBI. The rules will take effect on April 1, 2024, and banks will need to request permission in advance before appointing SAs by July 31 of the relevant fiscal year. The rules concentrate on a) Qualification standards a) Evaluate SA performance c) Auditor Independence c) SA Rotation and Tenure.Guidelines for Appointing and Reappointing Statutory Auditors of State and Central Cooperative Banks are released by the RBI. Guidelines for the Appointment and Reappointment of Statutory Auditors of Cooperative Banks have been released by the RBI.

The rules will take effect on April 1st, 2024.The Reserve Bank of India (RBI) must give its prior consent before a State Co-operative Bank (StCB) or Central Co-operative Bank (CCB) can appoint, re-appoint, or remove a Statutory Auditor (SA).The requirements for becoming a Statutory Auditors (SAs) When a new SA is appointed, the bank will choose the audit firms that meet the guidelines' requirements from the list provided by NABARD based on the size of the asset relative to the size of the chartered accountants firm and audit experience. The bank will then forward the name(s) of the audit firms that make the short list to RBI in accordance with the following procedure:(i) It will submit an application to RBI containing the names of the audit firms that have been accepted by its Board or ACB. RBI will then issue prior approval, and the process will culminate with the appointment of SA at the concerned bank's AGM. (ii) Should a new SA be appointed, the bank must shortlist a minimum of two audit companies from the NABARD panel for each SA position. (iii) The bank will present the names of the audit companies that made the short list, ranked by preference, to their Board or ACB for "in principle" approval.

The bank must apply to RBI for prior approval after receiving Board or ACB clearance. (iv) Banks whose registered office is located in the Mumbai region must apply to the Audit Relation(v) The audit firms that make the short list must provide the bank with a certificate attesting to their compliance with all eligibility requirements set forth by the RBI. (vi) The bank must provide a certificate certifying that the audit firm it is proposing to be appointed as SA complies with all eligibility requirements set forth by RBI in addition to recommending the name or names of audit firm(s).(vii) The bank must include a copy of the Board / ACB Resolution endorsing the name(s) of audit firm(s) in the order of preference, together with information about the bank's total asset size as of March 31st, the preceding financial year (audited data), while applying to RBI for prior approval.