Revision of Remuneration payable to Statutory Auditors of RRBs from FY 2018-19 onwards

Revision of Remuneration payable to Statutory Auditors of RRBs for Head office and Branch for audit to be conducted in financial year 2018-19 onwards

Remuneration payable to Statutory Auditors of RRBs

F. No. 7/4/2015-RRB- Vol (II)
Government of India
Ministry of Finance
Department of Financial Services

Jeevan  Deep Building, 3rd Floor,
Sansad  Marg, New  Delhi
Dated the 16 October ,2017

The  Chief General  Manager ,
Head Office, Mumbai

Subject: Revision of Remuneration payable to Statutory Auditors of RRBs.


I am directed  to  refer to  NABARD’s  letters  NB.HO. IDD/260/RRB-322/2017-18  dated 2nd June 2017 and NB.HO.IDD/468/RRB-322/2017-18  dated  25th July, 2017 on the  above cited subject and to convey the approval of the Central Government in terms of provisions of section 19(2) of the Regional Rural Bank act, 1976, to the following revision in the remuneration of the Statutory Auditors of RRBs for audit to be conducted in financial year 2018-19 on wards until further revision.

2. Head Office Audit Fees:

S. No. Business level (Advance+Deposit) of the RRB as a whole  Audit Fee
1 below Rs. 500 crores 26560
2 Rs. 500 crores to 1500 crores 40625
3 Above Rs. 1500 crore to Rs. 3000 crore 53100
4 Above Rs. 3000 crore to Rs. 4500 crore  67200
5 Above Rs. 4500 crore to Rs. 15000 crore 78150
6 Above Rs. 15000 crore to Rs. 25000 crore 90650
7 Above Rs. 25000 crore 105150

3. Branch Audit Fees

S.N. Quantum of Loans and Advances of the concerned Branch (excluding inter-Branch Advances) Audit Fee (Rs.)
1 Up to Rs. 2.5 crores 5000
2 Above Rs. 2.5 crore to Rs. 5.0 crores 6300
3 Above Rs. 5.0 crore to Rs. 8.0 crores 7900
4 Above Rs. 3.0 crore to Rs. 15 crores 9300
5 Above Rs. 15 crore to Rs. 25 crores 11000
6 Above Rs. 25 crore to Rs. 40 crores 13000
7 Above Rs. 40 crore  15350

4. Daily conveyance allowance :


The travelling and halting allowance (TA/HA)/Boarding charges/Lodging charges payable to the Statutory  Auditors will be as per the norms specified by IBA norms. The category of Officers linked for the purpose of deciding the ceiling limits of such expenses will be as under:


* However , the reimbursement of daily conveyance charges sha ll not exceed 10% of the audit fees payable to the respective auditors . T here w ill be no dist inction between statutory Central auditors and Branch auditors regarding payment of branch audit fees and reimbursement of_ travel ling, halting allowance and daily conveyance charge .

6. With regard to the reimbursement of  travelling,  halting  allowance   and  daily conveyance charges , the following norms as hitherto may also be continued:

(i) Wherever banks have Guest House or Visiting Officers flats , the same may be utilized to cater to the needs of auditors.

(ii) Banks should call for such details as are necessary for verification of bills in this regard and the statutory central auditors as well as branch auditors  shall furnish such details  for verification of the actual expenses.

(iii) Where the statutory central auditors have their headquarters at a place different from that where the Head / Central Office of the bank is situated , the TA/HA, if any , should be nominal for the central audit.

(iv) However , to ensure the quality of audit, there should be no restriction on the  partners of the firm visiting the  Head/Central Office of the Bank as and when they deem it necessary.

(v) Where the statutory central auditors or branch auditors have an office at the place where the branches/ offices of the bank to be audited are situated , they will not be reimbursed TA/HA . However, daily  conveyance  may be reimbursed as suggested above.

(vi) The TA/HA should be kept to the minimum.

(vii) In case of dispute between the auditors and the bank regarding settlement of their bills, the Chairman of the RRB shall be the final authority to decide the claims. The Chairman has to satisfy himself that the actual expenses have been incurred by a particular auditor and the claims are settled keeping in view the aforesaid guidelines.

7. This issues with the approval of Competent Authority .

8. The receipt of this letter may kindly be acknowledged .

Yours faithfully ,

Deputy Director (RRB)
Tel-No- 011-23748764

Download The letter of RRB Click Here >>

----------- Similar Posts: -----------


Leave a Reply