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‘Government dilutes RBI’s power to select auditors for bank audit’

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Kolkata, March 3 (IANS) In the wake of an alleged multi-crore fraud on state-run Punjab National Bank (PNB), the auditors and financial professionals on Saturday accused the central government of “diluting the bank audit system as well as power of Reserve Bank of India (RBI) for selection of auditors for auditing of banks”.

They also questioned how the management of banks are allowed to select the statutory auditors.

“Earlier, the RBI used to appoint statutory auditors of banks. But to our utter surprise, we observed that from 2014-15, the power of the RBI to appoint central statutory auditors and branch statutory auditors was snatched by the central government and was handed over to the management of the respective banks,” Association of Chartered Accountants’ General Secretary Kingsuk Datta told reporters here.

Forum of Finance Professionals and Economists’ General Secretary Sunil Kumar Gandhi said banks’ managements were allowed to select the statutory auditors taking only nominal permission of the RBI before the appointment.

“Can you imagine a situation where the examinees themselves are appointing their own examiners,” he asked.

They demanded the selection of bank central auditors and statutory branch auditors should be done under the control of the RBI and not in the hands of the bank management.

The association and forum also demanded the creation of a national audit board which will act as a regulatory body for appointment of auditors of private listed companies, parallel to C&AG.

They also apprehended there might be a “nexus” between the management of a particular bank and selected auditors’ of the lender if the selection process continues in this way.

Criticising the Ministry of Finance’s circular dated September 26, 2012, Datta also said the Ministry of Finance directed banks that “the statutory branch audit has become routine and not much effective post implementation of CBS (core banking solution) in PSBs (public sector banks)”.

“Statutory branch audit is essential and unfortunately, branches with advances of Rs 20 crore or below are not selected for statutory audit,” Datta said.

In view of the alleged multi-crore bank fraud case, Gandhi said keeping “Swift” out of the core banking solution was “one of the loopholes”.

Both the association and forum demanded the scrapping of the FRDI Bill, 2017.

–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma

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World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.

Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.

During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.

On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”

Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.

It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.

Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.

Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”

On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”

The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.

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