RBI orders internal audit in all banks

The move comes in the wake of irregularities that came to light last year in Rs 6,100 crore import remittances effected by Bank of Baroda’s Ashok Vihar branch here. A circular has been issued to all scheduled commercial banks, advising them to conduct a thorough internal audit and place the report before audit committee of the board of the respective banks and to forward the summary of findings to RBI, the central bank has said in reply to an RTI query. 

“We are in the process of receiving the internal audit report from various banks,” it said. The RBI has asked Bank of Baroda to conduct a bank-wide review of the outward remittances to rule out similar wrong doings at other domestic branches and submit a report to it. 

Both the Central Bureau of Investigation and Enforcement Directorate (ED) are probing remittances of Rs 6,100 crore to Hong Kong from the Bank of Baroda’s Ashok Vihar branch.