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
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)
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