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‘Zero tolerance’ for banks’ arbitrariness won’t work, RBI issues this big warning

Sagar Patel

By Sagar Patel

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Now the banks in the country will not be able to act on their own volition and will not be able to make mistakes. The bank of banks, i.e. the Reserve Bank of India (RBI), is being very strict on some issues and is not willing to take any laxity in this regard. Therefore, it has also sent a message of ‘zero tolerance’ to the management and auditors of the banks.

The Reserve Bank of India (RBI) will hold a grand meeting on Tuesday with the chief financial officers and external auditors of all commercial banks in the country. Just before this, RBI also informed everyone about the agenda of the meeting.

This oversight will cost you dearly.

In fact, the central bank has asked chief financial officers and auditors of all banks to work on zero-tolerance method regarding laxity in compliance and regulatory norms. Citing sources having information in this regard, ET said in a news report that two deputy governors of the RBI, M. Rajeshwar Rao and J. Swaminathan will meet the chief financial officers and auditors of the banks.

clean balance

At this meeting, the RBI may give directions to the chief financial officers and auditors of the banks to discharge their responsibility of maintaining the balance sheets of the banks in a sound condition. The balance sheet should give an accurate picture of the financial position of the banks.

Lack of trust between banks and auditors

A senior banker, on condition of anonymity, said that a constant tug-of-war has been observed between banks and auditors. One reason for this is lack of trust and the other is the difference of opinion between the two regarding the interpretation of regulations. The biggest issue of contention is revenue recognition and loan provisioning.

Therefore, with the aim of achieving harmony between both parties, the Central Bank called today’s meeting.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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