New Delhi.  Reserve Bank Deputy Governor Swaminathan Janakiraman expressed his views on the financial condition of the banking sector.He said that the banking sector is at a decade high regarding financial parameters. This good condition of the banking sector is fully prepared to support the growth of the Indian economy.

RBI is improving the auditing process

Addressing chief financial officers and other officials of commercial banks and all Indian financial institutions at a conference, the deputy governor said the Reserve Bank has launched several initiatives to improve the auditing process. These include structured meeting mechanisms between the supervisory team and auditors, exception reporting, streamlining the appointment process of auditors, and safeguards to safeguard auditor independence.

There should be strictness in audit procedures

He added, "Auditors should apply appropriate rigor in their audit processes to minimize any possibility of non-compliance with statutory and regulatory requirements.In addition, an important aspect of the auditor's role is to carefully evaluate internal financial controls over financial reporting."

Auditors should have a role in strong financial monitoring

He also laid out some expectations from auditors to help ensure strong financial monitoring and regulatory compliance. He said they can play a key role in identifying early vulnerabilities and promptly reporting them to both bank management and the RBI."I would like to mention that today the banking sector is at a decade high across all financial parameters that we monitor, and the sector is well placed to support the growth of the Indian economy. But it is our shared responsibility to ensure that this remains sustainable over the years"The conference included guest speakers from the industry and technical sessions by Chief General Managers of RBI