The Reserve Bank of India (RBI) replied on the RTI Application in respect of Signing and certification from CA.
Firstly, signing on Project Report for Loan Purposes with seal/UDIN of CA thereon. The query was that if there is specific circular/notification issued by them to the commercial banks demanding signing on Project Reports/CMA Report by CAs while advancing New/ Old Loans.
Giving certification/ Signing on Unaudited balance sheets and on Income Tax Returns of Clients (for those who does not fall under the category of Audit Cases such as Income Tax, Company Act etc) & generating UDIN thereon.
The RBI replied that no specific instructions are issued in this regard. However, it may be noted that credit related issues are mostly deregulated. The Reserve Bank of India has advised banks to have documents of investment policy, loan policy, loan recovery policy etc. prepared and duly vetted by their Boards of Directors. Banks are required to take credit related decisions based on Board approved policies subject to the instructions contained in our Master Circular on “Loans and Advances – Statutory and Other Restrictions” issued vide DBR. No.Dir.BC.10/13.03.00/2015-16 dated July 1, 2015 which is available on RBI’s website under the head ‘Notifications’.
Secondly, if any policy drafted by RBI with such Banks to get Certificate of Know your customer by CA if client is known to him and validity of the same.
The Bank clarified that no specific instructions are issued in this regard.
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