+
RBI extends risk-based internal audit norms to housing finance firms
ECONOMY & POLICY

RBI extends risk-based internal audit norms to housing finance firms

The Reserve Bank of India (RBI) has extended the risk-based internal audit (RBIA) system to select housing finance companies to improve the quality and efficacy of its internal audit system.

RBI had issued a circular in February mandating the RBIA framework for select urban co-operative banks and non-banking financial companies (NBFCs) by March 31, 2022.

On Friday, the RBI extended the requirements declared for NBFCs to housing finance companies (HFCs) through a circular.

The Central bank stated that the provisions will refer to all deposit-taking HFCs, irrespective of their size, and non-deposit-taking HFCs with asset size of Rs 5,000 crore and above.

Such HFCs are required to put an RBIA framework in place by June 30, 2022.

An effective RBIA is an audit method that connects an organisation's overall risk management framework and renders an assurance to the Board of Directors and the senior management on the risk management, quality, and effectiveness of the organisation's internal controls, and governance-related systems and processes.

According to the RBI's February circular, the internal audit function must broadly evaluate and contribute to the overall improvement of the organisation's governance, risk management, and control processes applying a systematic and disciplined approach.

The internal audit system at NBFCs/UCBs generally focuses on transaction testing, testing accuracy and reliability of accounting records and financial reports, adherence to legal and regulatory requirements, which may not be adequate in a changing scenario.

In February, RBI had stated that all deposit-taking NBFCs; all UCBs having an asset size of Rs 500 crore and above; and all non-deposit taking NBFCs with asset size of Rs 5,000 crore and above under will have to execute the RBIA framework by March 31, 2022.

Image Source


Also read: Monetary Policy 2021 maintains growth supportive stance, industry applauds

Also read: RBI forms advisory taskforce to assist regulatory review authority

The Reserve Bank of India (RBI) has extended the risk-based internal audit (RBIA) system to select housing finance companies to improve the quality and efficacy of its internal audit system. RBI had issued a circular in February mandating the RBIA framework for select urban co-operative banks and non-banking financial companies (NBFCs) by March 31, 2022. On Friday, the RBI extended the requirements declared for NBFCs to housing finance companies (HFCs) through a circular. The Central bank stated that the provisions will refer to all deposit-taking HFCs, irrespective of their size, and non-deposit-taking HFCs with asset size of Rs 5,000 crore and above. Such HFCs are required to put an RBIA framework in place by June 30, 2022. An effective RBIA is an audit method that connects an organisation's overall risk management framework and renders an assurance to the Board of Directors and the senior management on the risk management, quality, and effectiveness of the organisation's internal controls, and governance-related systems and processes. According to the RBI's February circular, the internal audit function must broadly evaluate and contribute to the overall improvement of the organisation's governance, risk management, and control processes applying a systematic and disciplined approach. The internal audit system at NBFCs/UCBs generally focuses on transaction testing, testing accuracy and reliability of accounting records and financial reports, adherence to legal and regulatory requirements, which may not be adequate in a changing scenario. In February, RBI had stated that all deposit-taking NBFCs; all UCBs having an asset size of Rs 500 crore and above; and all non-deposit taking NBFCs with asset size of Rs 5,000 crore and above under will have to execute the RBIA framework by March 31, 2022. Image Source Also read: Monetary Policy 2021 maintains growth supportive stance, industry applauds Also read: RBI forms advisory taskforce to assist regulatory review authority

Next Story
Resources

Haworth India Hosts Women’s Leadership Panel Series

Haworth India marked International Women’s Day by hosting a leadership roundtable series titled ‘Give to Gain’, bringing together senior women leaders from architecture and design firms, corporates and project management consultancies. The series has been conducted in Delhi and Mumbai, with upcoming sessions scheduled in Bengaluru and Hyderabad on 27 March 2026. Structured as moderated panel discussions followed by audience interaction, the initiative examined the business impact of women’s leadership and the role of inclusive workplaces in supporting professional growth. Manish Khan..

Next Story
Real Estate

Max Estates Secures RERA For Max One Project

Max Estates has secured RERA approval (UPRERA No.: UPRERAPRJ9759) for its Max One development around Max Towers in Sector 16B, Noida, bringing renewed progress to a project previously stalled following the insolvency of its earlier developer. Spread across around 10 acres with an estimated development potential of about 2.5 million sq ft, Max One is planned as an integrated mixed-use campus combining serviced residences, premium offices, retail spaces and a private club. The project is expected to generate total sales potential of about Rs 20 billion along with an estimated annuity rental inc..

Next Story
Real Estate

Hindware Introduces Starc Smart Wall Mount Toilet

Hindware has introduced the Starc Smart Wall-Mount Toilet under its Hindware Italian Collection, designed to combine automation, hygiene and contemporary bathroom aesthetics. The model features automatic flushing, sensor-based seat opening and closing, and remote-controlled functions. It also includes an oscillating water spray and warm air dryer for cleaning, along with a self-cleaning nozzle designed to maintain hygiene. Additional features include adjustable heated seating, customisable water temperature and pressure settings, a foot-touch flush system and an LCD control interface. The wa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement