Regulatory Alerts2026-07-31
Added · Updated
Reserve Bank of India (Commercial Banks – Concurrent Audit) Directions, 2026
These Directions apply to Commercial Banks, excluding Small Finance Banks, Payments Banks, and Local Area Banks, and come into effect immediately upon issuance. They mandate that the Audit Committee of the Board or Local Management determine the scope of concurrent audit, set auditor tenure limits (maximum five years for external auditors, three years per branch), and establish remuneration policies. The regulations require coverage of risk-sensitive areas including cash, loans, KYC/AML, treasury, and foreign exchange transactions, while enforcing strict reporting protocols for irregularities and fraud. Existing concurrent audit guidelines are repealed, with prior actions and liabilities remaining governed by the previous rules.