Reserve Bank of India should be audited: CAG
With rising financial frauds and the government’s eye on cleaning up banks’ balance sheets and cracking down on bad loans, the Comptroller and Auditor General of India (CAG) wants the Reserve Bank of India to come under the auditor’s purview too.
CAG Shashi Kant Sharma, said at a conference in New Delhi on Friday, that the RBI should be audited too. He was speaking at the ‘3rd National Conference on Financial & Corporate Frauds’ organized by Assocham.
While the CAG has the mandate to audit financial regulators like Sebi, Irda, Pfrda, RBI’s auditors are selected under the RBI Act.
Sharma is quoted in the report as saying that it is important to analyse the central bank too, to see if our regulators are in the position to deal with the financial frauds and growing uncertainty and vulnerabilities.
He also said that with developments in the UK, with the country deciding to leave the European Union, there’s a growing need for more transparency and accountability in our financial systems.