Banks are asking for various certificates from a CA like for opening a Current account, KYC , Utilisation of funds , signing of Financial statements etc which are not in conformity of ICAI rules and hence should not be issued except in consonance of ICAI rules.
Still many banks demand the same which is illegal on their part. To settle this issue faced regularly by Chartered Accountants, CA Niting Hargude has filed a RTI with RBI asking for sanctity of asking for such certificates, RBI has opined that it has not issued any such guidelines.
When approached by a Pvt bank, I have asked for Internal regulation that warrants such certificate they are demanding which they could not provide.
This shows these all certificates are demanded without and legal requirement or internal instructions of the bank and hence we should avoid issuing any such certificates in supersession of ICAI rules.
The Copy of RTI reply is attached herewith. Kind request to all Members to go throgh the same.
@canitinhargude
#RBI #ICAI #Banking #Audit
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