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

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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
Infrastructure Urban

RR Kabel features in Hurun India 500 list

RR Kabel has been featured in the 2025 Burgundy Private Hurun India 500, a list of India’s 500 most valuable companies. The list is compiled by Burgundy Private, Axis Bank’s private banking business, in partnership with Hurun India.The recognition highlights RR Kabel’s sustained growth, market leadership and long-term value creation in India’s consumer electrical sector. The annual list recognises companies that have contributed to India’s economic landscape through scale, performance and business value.The Burgundy Private Hurun India 500 ranks listed companies based on market capit..

Next Story
Infrastructure Urban

Vedanta ranks among India’s top 100 workplaces

Vedanta Group has been recognised among India’s Top 100 Best Companies to Work For 2026 by Great Place to Work India. The recognition reflects the company’s focus on building a high-trust, high-performance and inclusive workplace across its businesses in natural resources, critical minerals, energy and technology.Over the past five years, Vedanta has enabled nearly Rs 25 billion in employee wealth creation through its broad-based Employee Stock Option programme. The company said the initiative is aimed at encouraging ownership and shared value creation across levels.Vedanta has also built ..

Next Story
Real Estate

AGM Vijaylaxmi launches Sixty3 W.E. Bizpark

AGM Vijaylaxmi Group has launched Sixty3 W.E. Bizpark, a mixed-use commercial development in Goregaon East, Mumbai. The project includes contemporary office spaces and a high-street retail component designed to support businesses, retailers and professionals.Located along the Western Express Highway, Sixty3 W.E. Bizpark is planned as a G+25-storey commercial tower. It offers office spaces ranging from 545 sq ft to 3,200 sq ft, with a 3.60 metre floor-to-floor height aimed at improving spatial comfort, natural light and operational efficiency.The project features a high-street retail boulevard ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement