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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI issues Reserve Bank of India (Non-Banking Financial Companies - Statutory Audit) Directions, 2026

31-Jul-2026 | RBI/DoS/2026-27/465 DoS.CO.ARG.59/08.91.001/2026-27

RBI has issued Reserve Bank of India (Non-Banking Financial Companies - Statutory Audit) Directions, 2026 with effect from 31st July, 2026 Key highlights are as follows: 1. This direction shall be applicable to Non-Banking Financial Companies (NBFCs) in respect of appointment / reappointment of their Statutory Central Auditors (SCAs) / Statutory Auditors (SAs). However, non-deposit taking NBFCs with asset size below ₹1,000 crore have the option to continue with their extant procedure. 2. he Directions provide governance responsibilities for Boards and Audit Committees, prescribe eligibility criteria for audit firms based on asset size, partner strength, audit experience, professional staff, and information systems audit qualifications, and set requirements relating to independence, tenure, rotation, branch coverage, audit fees, and appointment procedures. 3. NBFCs with asset size of ₹15,000 crore and above are required to conduct statutory audits through joint audit by at least two audit firms 4. Audit firms are appointed for a continuous three-year term, followed by a six-year cooling-off period before reappointment in the same NBFC. 5. he Directions also require submission of appointment information and eligibility certificates in prescribed Forms A and B, repeal earlier statutory audit directions while preserving existing actions and liabilities, and provide that RBI’s interpretation shall be final and binding. For more information, please refer to attached pdf.

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