Section 45 M - Duty of non-banking institutions to furnish
statements, etc., required by Bank, Section 45 MA - Powers and
duties of auditors : RBI Act 1934
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
Section 45-M of RBI Act 1934 : "Duty of non-banking
institutions to furnish statements, etc., required by Bank"
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.
Section 45-MA of RBI Act 1934 : "Powers and
duties of auditors"
(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
(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.