The Reserve Bank of India (RBI) on July 31, 2026, issued the Reserve Bank of India (Payments Banks – Statutory Audit) Directions, 2026.
These Directions shall come into effect on July 31, 2026.
The following has been stated:
• The Directions provide a comprehensive framework for the conduct of statutory audits in Payments Banks to strengthen financial reporting, governance, and regulatory compliance. The Directions prescribe the eligibility, appointment, tenure, rotation, independence, and responsibilities of Statutory Central Auditors (SCAs) and Statutory Auditors (SAs), as well as the roles of the Board and the Audit Committee in overseeing the audit process.
• They require auditors to evaluate the accuracy of financial statements, adequacy of internal controls, compliance with RBI regulations, asset quality, provisioning, fraud reporting, and the effectiveness of risk management systems.
• The Directions also provide for coordination between statutory and internal auditors, timely submission of audit reports and regulatory certificates, reporting of material irregularities and frauds to the RBI, maintenance of auditor independence and confidentiality, and compliance with applicable auditing standards.
• Further, the Directions consolidate the statutory audit framework for Payments Banks while preserving actions taken under the earlier regulatory regime.
[Notification no. – RBI/DoS/2026-27/432 DoS.CO.ARG.26/08.91.001/2026-27]
