The Reserve Bank of India (RBI) has withdrawn 34 circulars issued over several years, aiming to streamline banking regulations and reduce redundancies. This article provides a comprehensive overview of the withdrawn circulars and their potential impact.
List of Withdrawn Circulars:
The RBI has published a comprehensive list of the withdrawn circulars in an Annexure attached to the notification. They cover various banking aspects, including:
- Auditing: Several circulars related to the appointment and remuneration of statutory central and branch auditors for banks and cooperative societies have been withdrawn.
- Financial Reporting: Circulars governing the submission of balance sheets, profit and loss accounts, and auditor’s reports by banks and cooperative societies have been withdrawn.
- Half-Yearly Reviews: Instructions mandating half-yearly reviews of accounts for public sector banks have been removed.
- Other Regulations: Circulars on diverse topics like Year 2000 (Y2K) issues and Deposit Insurance and Credit Guarantee Corporation (DICGC) claims have also been withdrawn.
Impact of the Withdrawals:
The withdrawal of these circulars signifies the RBI’s ongoing efforts to simplify regulations and create a more efficient banking environment. While the specific impact may vary depending on the individual circular, the general implications include:
- Reduced Compliance Burden: Banks and cooperative societies will be relieved from following the withdrawn regulations, potentially reducing their administrative burden.
- Focus on Updated Guidelines: The focus will likely shift towards adhering to more recent and relevant RBI guidelines and regulations.
- Need for Internal Review: Banks and cooperative societies may need to conduct internal reviews to ensure their existing practices are aligned with current regulatory expectations.
- Transparency and Accessibility: The RBI’s move promotes transparency by consolidating relevant regulations and increasing accessibility for stakeholders.
Important Considerations:
It’s crucial to remember that withdrawing a circular doesn’t necessarily imply the complete removal of the associated regulation. The core principles outlined in the withdrawn circulars might still be applicable under broader regulations or best practices within the banking sector. Banks and cooperative societies should:
- Consult with Regulatory Authorities: For any specific concerns or clarifications regarding the implications of withdrawn circulars, it’s advisable to consult with the relevant RBI department or seek guidance from professional advisors.
- Stay Updated on Current Regulations: Banks and cooperative societies must remain updated on current RBI guidelines and best practices to ensure they operate in compliance.
- Maintain Robust Internal Controls: Regardless of the specific withdrawn circulars, maintaining robust internal controls and risk management practices remains crucial for all banks and cooperative societies.
Conclusion:
The RBI’s withdrawal of 34 banking regulations represents a step towards streamlining the regulatory landscape for banks and cooperative societies. While the specific implications will vary based on individual regulations, the overall impact is likely positive, promoting efficiency and potentially reducing compliance burdens. However, it’s essential for banks and cooperative societies to stay updated on current regulations and maintain strong internal controls to operate effectively.
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RESERVE BANK OF INDIA
RBI/2023-24/129
DoS.CO.ARG/SEC.11/08.91.001/2023-24
March 01, 2024
The Chairman / Managing Director / Chief Executive Officer,
All Commercial Banks (Excluding RRBs)
All Primary (Urban) Co-operative Banks (UCBs)
Madam / Dear Sir,
Review of Guidelines – Withdrawal of Circulars
Consequent upon review of Circulars issued by the Reserve Bank from time to time, it has been decided to withdraw Circulars listed in the Annex with immediate effect.
Yours faithfully,
(Rajnish Kumar)
Chief General Manager
Encl: As above
Annex
List of Circulars withdrawn
| Sl. No. | Subject | Date | Circular No. |
| 1. | Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) – Section 31 – Submission of Balance Sheet, Profit & Loss Account and Auditor’s Report | April 19,
1966 |
ACD.BR.825/A.11(31)/65/ 6 |
| 2. | The Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) – Section 31 – Submission of Balance Sheet, Profit and Loss Account and Auditor’s Report | May 8, 1967 | ACD.BR.1979/A.12(29-31)/66-7 |
| 3. | Appointment of Statutory Central Auditors for the Year 1970 | June 29, 1970 | DBOD.No.EFS.1429/C.45 2(K)-70 |
| 4. | Appointment of Statutory Central Auditors for the Year 1970 | July 1, 1970 | DBOD.No.EFS.1451/C.45 2(K)-70 |
| 5. | Appointment of Branch Auditors for Indian Branches for the Year 1970 | September 19, 1970 | DBOD.No.EFS.2065/C.45 2(K)-70 |
| 6. | Nationalised Banks –
Remuneration of Statutory Central Auditors and Branch Auditors for Audit of Indian Branches for 1970 |
April 26, 1971 | DBOD.No.ARS.367/C.452 (K)-71 |
| 7. | Appointment of Branch Auditors for Indian Branches for the Year 1971 | December 15, 1971 | DBOD.No.ARS.1132/C.45 2(K)-71 |
| 8. | Nationalised Banks –
Remuneration of Statutory Central Auditors and Branch Auditors for Audit of Branches for 1971 |
January 7, 1972 | DBOD.No.ARS.18/C.452 (K)-72 |
| 9. | Appointment of Central Statutory Auditors for the year 1972 | June 13, 1972 | DBOD.No.ARS.533/C.452 (K)-72 |
| 10. | (i) Discontinuance of Half-Yearly Audit
(ii) Selection of Branches for |
May 14, 1973 | DBOD.No.ARS.421/C.452 (K)-73 |
| 11. | Standards for Audit Classification of Primary (Urban) Co-operative Banks | February 25, 1982 | ACD.UBD.120/UB-8(3)-81/82 |
| 12. | Discontinuance of Half-yearly Audit | April 29, 1982 | DBOD.No.Ret.BC.45/C.46 9(F)-82 |
| 13. | Remuneration Payable to Statutory Central and Branch Auditors of Nationalised Banks | December 14, 1984 | DBOD.No.App.BC.123/C. 452(K)-84 |
| 14. | Fees Payable for Submitting Long Form Audit Reports (LFARs) by Statutory Central/Branch Auditors of Public Sector Banks | June 26, 1986 | DBOD.No.App.1275/C.45 2(K)-86 |
| 15. | Role of State Co-operative Banks in the Development of Urban Co- operative Banks and Entrusting the Audit of Urban Co-operative Banks to Chartered Accountants | July 30, 1988 | UBD.P&O.82/UB.23-88/ 89 |
| 16. | Remuneration Payable to Statutory Central and Branch Auditors of Nationalised Banks | March 21, 1989 | DBOD.No.App.BC.93/C.4 52(K)-89 |
| 17. | DICGC Claims – Certificate to be issued by Statutory Auditors | April 17, 1995 | DOS.No.BC.4/16.10.001/9 5 |
| 18. | Remuneration Payable to Statutory
Central Auditors and Branch |
January 17, 1998 | DBS.No.330/08.92.001/ 97-98 |
| 19. | Year 2000 (Y2K) Issues – Statutory Audit for the Year 1998-99 | May 25, 1998 | DBS.No.Y2K.BC/52/35.01 .00/98-99 |
| 20. | Appointment of Statutory Central Auditors for the year 1998-99 | January 19, 1999 | DBS.ARS.No.383/08.03.0 03/98-99 |
| 21. | Year 2000 (Y2K) Issues – Statutory Audit for the Year 1998-99 | May 25, 1999 | DBS.CO.Y2K.BC.52/35.01 .00/98-99 |
| 22. | DICGC Claims – Certificate to be Issued by Statutory Auditors | May 25, 1999 | DBS.ARS.No.790/08:91:0 01/98-99 |
| 23. | Assessment of Auditors’ Performance for 1998-99 | June 11, 1999 | DBS.ARS.No.850/08:91:0 11/98-99 |
| 24. | Introduction of Half-yearly Review of Accounts of Public Sector Banks | May 17, 2001 | DBS.ARS.No.BC.13/08.91 .001/2000-01 |
| 25. | Introduction of Half-yearly Review of Accounts of Public Sector Banks | October 25, 2001 | DBS.ARS.No.BC.4/08.91. 001/2001-02 |
| 26. | Introduction of Half Yearly Review of Accounts of Public Sector Banks | November 5, 2001 | DBS.ARS.No.BC.6/08.91. 001/2001-02 |
| 27. | Inspection under Section 35 of the Banking Regulation Act, 1949 (As Applicable to Co-op. Societies) – Comment on Quality of Audit | January 25, 2003 | UBD.No.BSD.IP.RO.13/12.05.01/2002-03 |
| 28. | Half yearly / Quarterly Review of Accounts of Public Sector Banks | June 5, 2003 | DBS.ARS.No.BC.17/08.91.001/2002-03 |
| 29. | Guidelines for Consolidated
Accounting and other Quantitative Methods to Facilitate Consolidated Supervision – Audit of Consolidated Financial Statements |
July 8, 2003 | DBS.ARS.No.BC.2/08.92. 001/2002-03 |
| 30. | Assessment of Auditors’ Performance for 2002-03 | August 20, 2003 | DBS.ARS.No.122/08.91.0 11/2003-04 |
| 31. | Appointment of Statutory Central Auditors of Associate Banks of SBI – Payment of Fees for Certifying Data for the Preparation of CFS of SBI Group | April 20,
2004 |
DBS.ARS.No.BC.10/08.92.001/2003-04 |
| 32. | Terms and Conditions of Appointment of Statutory/ Concurrent/ Internal Auditors – Implementation of the Recommendations of the Committee on Legal Aspects of Bank Frauds and the Recommendations of the High Level Group Set up by the Central Vigilance Commission (CVC) |
August 27, 2004 | DBS.ARS.No.BC.4/08.91.001/2004-05 |
| 33. | Half yearly / Quarterly Review of Accounts of Public Sector Banks | September 23, 2015 | DBS.ARS.No.BC.5/08.91.001/2015-16 |
| 34. | Half yearly / Quarterly Review of Accounts of Public Sector Banks | July 28, 2016 | DBS.ARS.No.BC.2/08.91.001/2016-17 |
