Dated: August 25, 2016
All Scheduled Commercial Banks
Dear Sir/ Madam,
Risk- based Internal Audit
Please refer to our circular DBS.CO.PP.BC.10/11.01.005/2002-03 dated December 27, 2002 on Risk-based Internal Audit setting out the scope and coverage of Risk-based Internal Audit (RBIA) system in commercial banks. In this connection some banks have represented to us seeking approval for engaging services of retired officers of the bank for assisting in internal audit.
2. Keeping in view the change in demographic profile of the staff in banks on account of retirement leading to shortage of staff to conduct internal audit which is an important component of Risk Based Supervision (RBS), it has been decided to permit banks to engage the services of its retired officials for assisting in internal audit subject to following conditions:
(Parvathy V Sundaram)
Chief General Manager- in- Charge