RBI to rap auditors for lapses by banks, NBFCs

....."The RBI Act empowers the RBI to take action against the auditors who have misreported or not reported or not told the RBI about violations," a source said. The top management of RBI, particularly Deputy Governor K. C. Chakrabarty, has been critical of how management changes at state- owned banks have led to sharp decline in profits and jump in non- performing assets. This has generally happened as the tenure of top management has gotten shorter in public sector banks, and both the outgoing and incoming chief executives are under pressure to show higher profits during their tenure........

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