Remuneration of Bank Auditors of Nationalized banks revised from FY 2022-23

RBI has revised the remuneration payable to the Statutory Central and Branch Auditors of Nationalized banks effective from the FY 2022-23.

The revised remuneration is as under:

1. Remuneration for Central Statutory Audit work of the bank

The fees admissible to the SCAs for Audit of the Head/Central Office as an accounting unit shall be as under:

Category of banks (based on Balance Sheet size) Rate of audit fees in Rs.
Upto Rs. 2,00,000 crore 842600/-
Above Rs. 2,00,000 crore and upto 5,00,000 crore 902000/-
Above Rs. 5,00,000 crore and upto  10,00,000 crore 961400/-
Above Rs. 10,00,000 crore and upto 15,00,000 crore 1020800/-
Above Rs. 15,00 ,000 crore 1080200/-

Note: The total remuneration , as per above mentioned schedule , shall be divided equally among all the SCAs of the bank concerned . As hitherto, no separate fee will be payable to the SCAs in respect of audit of Regional, Zonal or Divisional Offices or other Controlling Offices by whatever name they are called . In case the bank intends to appoint a separate auditor for the above offices, fee paid for such auditor should be based on the quantum of advances .

2. Remuneration for Statutory Branch Audit work

The fees admissible to the SBAs shall be as under:

Category of bank branch (on the basis of quantum of Advances)

Audit fees per branch Rs.
Up to Rs. 10 crores 44250/-
Above 10 crore and upto Rs. 20 crore 63250/-
Above 20 crore and upto Rs. 30 crore 87300/-
Above 30 crore and upto Rs. 50 crore 132800/-
Above 50 crore and upto Rs. 75 crore 151800/-
Above 75 crore and upto Rs. 125 crore 201150/-
Above  125 crore and upto Rs. 175 crore 251750/-
Above 175 crore and upto Rs. 300 crore 316250/-
Above 300 crore and upto Rs. 500 crore 356750/-
Above 500 crore and upto Rs. 1000 crore 395950/-
Above 1000 crore and upto Rs. 5000 crore 435150/-
Above Rs. 5000 crore 474350/-

The main operating office of the bank (irrespective of the fact whether it is attached to Head/ Central Office of the bank or functions as a separate unit), Centralised Processing Units (CPUs)/ Loan Processing Units (LPUs)/and other centralised hubs, by whatever nomenclature called , which are taken up for the purpose of statutory branch audit during a particular year, will be treated as any other branch. Accordingly, the fees admissible for the audit work thereof will be on the basis of the above-mentioned  schedule.

For branches operating as NPA recovery branches, or branches where there  is no advances portfolio, such as service branches, specialised branches , , the banks, with the approval of their Board/Audit Committee of the Board (ACB), shall propose the audit fees (arrived on the basis of volume of business of the branch, existing fee, etc.) and seek approval of RBI on a case-to-case basis.

3. Fees for all other items of work done by Statutory Auditors

3.1 The bank concerned shall, with the approval of their Board/ACB , decide fees for all other items of work [such as additional certifications required by Securities and Exchange Board of India (SEBI), preparation of Long Form Audit Report (LFAR), scrutiny and incorporation of returns of branches, auditing of consolidated financial statements, quarterly/half-yearly limited review , other additional certifications/reporting required by RBI, ] carried out by their Statutory Auditors (SCAs and SBAs).

3.2 For reimbursement of the lodging & boarding charges, traveling charges, halting allowance and daily conveyance payable to the Statutory Auditors, the banks are given the discretion to decide the same in a cost-effective manner, in mutual consent with the auditors.

3.3 In case of any dispute between the Statutory Auditors and the bank regarding settlement of their bills, the MD & CEO of the concerned bank shall be the final authority to decide the claims.

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