The Reserve Bank of India (RBI) on July 31, 2026, issued the Reserve Bank of India (Commercial Banks – Statutory Audit) Directions, 2026.
The following has been stated: -
•The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks - Statutory Audit) Directions, 2026, establishing updated governance and operational guidelines for appointing Statutory Central Auditors (SCAs) and Statutory Auditors (SAs).
•Applicable to commercial banks, these directions mandate the appointment of joint audit firms for institutions with assets of ₹15,000 crore or more.
•They outline strict eligibility criteria, independence requirements, and mandatory non-audit service cooling-off periods to maintain professional standards.
•Auditors are appointed for a continuous three-year term, subject to annual eligibility reviews and approval processes by the bank's Board or Audit Committee.
•Additionally, the framework defines explicit limits on branch coverage and the maximum number of concurrent bank audits a firm can undertake to ensure timely and effective audit execution.
These Directions shall come into effect immediately upon issuance.
The detailed directions are given in the document below.
[Notification No.: RBI/DoS/2026-27/414 DoS.CO.ARG.8/08.91.001/2026-27]
