The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Commercial Banks – Concurrent Audit) Directions, 2026, effective immediately.
The following has been stated:
• The Directions establish a comprehensive framework for concurrent audit in commercial banks to strengthen internal controls, ensure timely detection of errors, irregularities, and fraudulent transactions, and enhance overall governance and risk management.
• Banks are required to determine the scope of concurrent audit based on their risk profile, with mandatory coverage of key areas such as cash transactions, loans and advances, KYC/AML compliance, remittances, treasury operations, foreign exchange, clearing operations, card business, employee conduct, mis-selling of products, and compliance with RBI directions and internal policies.
• The Directions prescribe governance standards relating to the appointment, tenure, remuneration, accountability, and reporting of concurrent auditors, while requiring Board-approved policies, annual performance reviews, structured reporting systems, prompt rectification of deficiencies, and timely reporting of frauds to the appropriate authorities.
Please refer to the document attached below for more details.
[RBI/DoS/2026-27/409]
