Reserve Bank of India has provided some new guidelines to the Non Banking Financial Companies on hiring statutory auditors , which is very difficult for them to check the professionals those who will be suitable for that bill.
On 27 April, Some of the new guidelines were issued that these guidelines were provided for the section of auditors and some other empathizes with the calculation of some of the sentiments related to the Non Banking Financial Companies.
As per the provisions of the Central Bank, the auditors were supposed to be rotated from their position in every three years with the cooling period off six years and this pattern of shifting will be cleared before the next appointment. One of the auditors have been mandated for Non Banking Financial Companies with the assets of about ₹15, 000 crores and more. These auditors are also not allowed to work more than Eight Non Banking Financial companies clients.
However, a section of experts were mentioned that the provided guidelines by this time for Non banking Financial companies includes a long way in ensuring better quality audits. Ved Jain, who was the former president of the Institute of charted Accounts of India explained that the norms provided were for the better regulation of the a Non banking lenders.