What is the Duty of non-banking institutions to furnish statements, etc., required by Bank? What are the Powers and duties of auditors? Section 45M and 45MA of Reserve Bank of India Act 1934
It shall be the duty of every non-banking institution to furnish the statements, information or particulars called for, and to comply with any direction given to it, under the provisions of this Chapter.
(1) It shall be the duty of an auditor of a non-banking institution to inquire whether or not the non-banking institution has furnished to the bank such statements, information or particulars relating to or connected with deposits received by it, as are required to be furnished under this chapter, and the auditor shall, except where he is satisfied on such inquiry that the non-banking institution has furnished such statements, information or particulars, make a report to the bank giving the aggregate amount of such deposits held by the non-banking institution.
(1A) The bank may, on being satisfied that it is necessary so to do, in the public interest or in the interest of the depositors or for the purpose of proper assessment of the books of accounts, issue directions to any non-banking financial company or any class of non-banking financial companies or non-banking financial companies generally or to the auditors of such non-banking financial company or companies relating to balance sheet, profit and loss account, disclosure of liabilities in the books of accounts or any matter relating thereto.
(2) Where, in the case of a non-banking financial company the auditor has made, or intends to make, a report to the bank under sub-section (1), he shall include in his report under sub-section (2) of section 227 of the Companies Act, 1956 (1 of 1956), the contents of the report which he has made, or intends to make, to the bank.
(3) Where the bank is of the opinion that it is necessary so to do in the public interest or in the interest of the non-banking financial company, or in the interest of depositors of such company it may at any time by order direct that a special audit of the accounts of the non-banking financial company in relation to any such transaction or class of transactions or for such period or periods, as may be specified in the order, shall be conducted and the bank may appoint an auditor or auditors to conduct such special audit and direct the auditor or the auditors to submit the report to it.
(4) The remuneration of the auditors as may be fixed by the bank, having regard to the nature and volume of work involved in the audit and the expenses of or incidental to the audit, shall be borne by the non-banking financial company so audited.
Section 42 - Cash reserves of scheduled banks to be kept with the Bank
Section 43 - Publication of consolidated statement by the Bank
Section 43A - Protection of action taken in good faith
Section 45 - Appointment of agents
CHAPTER IIIA COLLECTION AND FURNISHING OF CREDIT INFORMATION
Section 45B - Power of Bank to collect credit information
Section 45C - Power to call for returns containing credit information
Section 45D - Procedure for furnishing credit information to banking companies
Section 45E - Disclosure of information prohibited
Section 45F - Certain claims for compensation barred
Section 45H Chapter IIIB not to apply in certain cases
Section 45IA - Requirement of registration and net owned fund
Section 45 IB - Maintenance of percentage of assets
Section 45ID - Power of Bank to remove directors from office
Section 45 JA - Power of Bank to determine policy and issue directions
Section 45 M - Duty of non-banking institutions to furnish statements, etc., required by Bank
Section 45 MA - Powers and duties of auditors
Section 45 MB - Power of bank to prohibit acceptance of deposit and alienation of assets