RBI / 2004-05 / 362
Ref.No.DBS. FID. No. C - 9 /01.02.00/2004-05
11 February, 2005
The CEOs of the all-India Term-lending and Refinancing
Institutions
(Exim Bank, IDFC Ltd., IFCI Ltd., IIBI Ltd., NABARD, NHB, SIDBI
and TFCI Ltd.)
Dear Sir,
Certificates / authentication to be obtained
from the Statutory Central auditors of Financial Institutions- FID. No. C -
9
Please refer to the instructions issued by us
to the financial institutions from time to time on:
(i) Investments made by FIs;
(ii) Treasury operations;
(iii) Proper custody of unused BR forms
(iv) IRAC and provisioning norms;
(v) Capital to Risk Asset Ratio (CRAR) norms and authentication
of FIs' assessment of CRAR in the Notes on accounts attached to the Balance
Sheet.
2. It has been decided that, henceforth,
the FIs may obtain from their Statutory Central Auditors, the certificate relating
to the following aspects :
(i) Treasury operations of the FI;
(ii) Reconciliation of FI's investment ;
(iii) Custody of unused BR forms and their utilisation as recommended
by Janakiraman Committee;
(iv) Compliance in key areas (conduct of the Investment Portfolio);
(v) Income recognition, asset classification and provisioning
made by the FI;
(vi) Authentication of FI's calculation of CRAR and assessment
of capital adequacy ratio in the 'Notes on Accounts' attached to the Balance
Sheet.
3. A copy each of these certificates
should be forwarded by the FI to the respective Regional Office of the Department
of Banking Supervision of RBI under whose jurisdiction the Head Office of the
FI is located, as soon as the Balance Sheet is finalised.
4. Please acknowledge receipt.
Yours faithfully,
(Surekha Marandi)
General Manager
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