The Reserve Bank of India (RBI) responded to RTI’s request for CA signing and certification.
First, signing the project report for loan purposes with the CA seal / UDIN on it. The request was that if there is a specific circular / notification issued by them to commercial banks requiring the signing of project reports / CMA report by CAs while advancing new / old loans.
Giving certification / signing unaudited balance sheets and client tax returns (for those that do not fall under the category of audit cases such as income tax, company law etc.) and generate UDINs on them.
The RBI responded that no specific instructions are issued in this regard. However, it can be noted that credit related matters are mostly deregulated. The Reserve Bank of India has advised banks to have documents of investment policy, loan policy, loan collection policy, etc. prepared and duly approved by their boards of directors. Banks are required to make credit-related decisions based on policies approved by the Board of Directors, subject to the instructions in our main circular on “Loans and Advances – Statutory and Other Restrictions†issued under DBR. No.Dir.BC.10 / 13.03.00 / 2015-16 of July 1, 2015 which is available on the RBI website under “Notifications”.
Second, if there is a policy drafted by RBI with these banks to obtain a know your customer certificate by CA if the customer is known to them and the validity of it.
The Bank clarified that no specific instructions are issued in this regard.
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