Master Direction – Non-Banking Financial Companies Auditor’s Report (Reserve Bank) Directions, 2016
This Master Direction outlines the requirements for auditors of Non-Banking Financial Companies (NBFCs) to submit reports to the Board of Directors and the Reserve Bank of India (RBI).
The direction applies to all NBFCs, including those accepting/holding public deposits and those not accepting public deposits.
The auditor’s report to the Board of Directors must include:
(A) Certain information applicable to all NBFCs;
(B) Additional information for NBFCs accepting/holding public deposits;
(C) Specific details for NBFCs not accepting public deposits;
(D) Particulars for companies engaged in non-banking financial institution business not required to hold a Certificate of Registration (CoR) subject to certain conditions.
The auditor must state reasons for any unfavourable or qualified statements in the report.
In addition to the report to the Board of Directors, the auditor must also submit an Exception Report to the RBI, highlighting any deviations or non-compliance with the directions.
The direction is effective from the date of issue and will be applicable from the financial year 2016-17 onwards.
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Download: Master Direction – Non-Banking Financial Companies Auditor’s Report (Reserve Bank) Directions, 2016