RBI DG urges CFOs of banks to maintain open, honest communication with auditors

Reserve Bank of India

Reserve Bank of India (RBI) Deputy Governor Swaminathan J on July 9 urged the chief financial officers (CFOs) of commercial banks and All India Financial Institutions to maintain open and honest communication within their organisations as well as with auditors and supervisors.

“Integral to this collaboration is the need for CFOs to maintain open and honest communication channels with auditors and bank supervisors. It is imperative to eschew the notion of hiding, withholding, or providing incomplete information to these teams,” Swaminathan said.

The RBI DG also urged CFOs to invest in technology and data analytics, which would help them provide more accurate and real-time financial insights.

“This not only aids in strategic decision-making but also enhances the ability to respond swiftly to any issues identified during audits or supervisory reviews,” he added.

Swaminathan also requested auditors to maintain audit rigour and adhere to the highest standards of objectivity, transparency, and ethics.

He was addressing a conference held by the RBI for statutory auditors and CFOs of commercial banks and All India Financial Institutions, in Mumbai.

The conference was attended by over 300 participants, RBI said in a release. This included M Rajeshwar Rao, Ajay Bhushan Prasad Pandey, Chairperson, National Financial Reporting Authority (NFRA), and Ranjeet Kumar Agarwal, President, The Institute of Chartered Accountants of India (ICAI).

Among other noteworthy attendees were the executive directors in-charge of the regulatory and supervisory functions of the Reserve Bank.