What changed
Earlier, lodging reimbursement for statutory auditors was linked to IBA-approved rates for bank officials. Since IBA stopped approving rates, RBI now says banks must use their own category-wise lodging limits for officials—Partners/Proprietors at GM level, Qualified Assistants at Senior Manager, Unqualified Assistants at Officer. Banks can also offer guest houses or visiting officers' flats to auditors.
What it means for you
Banks must align auditor lodging reimbursement with internal travel policies, reducing reliance on external benchmarks. This simplifies administration but may increase costs if bank limits are higher than IBA rates. It also ensures consistency in treatment of audit staff and bank officials.
What you must do
- Update internal policies to apply bank's own lodging limits for statutory auditors by category.
- Communicate revised reimbursement rates to audit firms and branches.
- Make guest houses/visiting officers' flats available to auditors where feasible.
- Ensure acknowledgment of this circular from all concerned.
Who it affects
Nationalised banks, Associate banks of SBI, Statutory central and branch auditors, Audit firms (partners, proprietors, qualified/unqualified assistants)
What triggered this change in lodging reimbursement?
IBA discontinued its practice of approving hotel rates for bank officials, so the earlier link to IBA rates became unworkable.
How are the new lodging limits determined?
Banks must use the same category-wise limits they apply to their own officials: Partners/Proprietors at GM level, Qualified Assistants at Senior Manager, Unqualified Assistants at Officer level.
Can auditors use bank guest houses?
Yes, RBI encourages banks to make guest houses or visiting officers' flats available to auditors.