RBI expands professional certification options for multiple banking arrangements
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-2009/379 · issued 10 Feb 2009 · ~1 min read
Quick answerRBI now allows Chartered Accountants and Cost Accountants, besides Company Secretaries, to certify borrower compliance under consortium/multiple banking arrangements. This expands the pool of certifying professionals for banks.
What changed
RBI clarified that banks can accept compliance certification from Chartered Accountants and Cost Accountants in addition to Company Secretaries. The Annex III format for the diligence report has also been revised based on IBA suggestions.
What it means for you
Banks now have more flexibility in obtaining statutory compliance certifications from borrowers with multiple banking relationships. This reduces dependency on a single professional category and may speed up the certification process. The revised Annex III format ensures standardized reporting.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Consider updating internal policies to accept certifications from Chartered Accountants and Cost Accountants alongside Company Secretaries, as permitted by the circular.
Adopt the revised Annex III format for diligence reports from borrowers under consortium/multiple banking arrangements, as provided in the circular.
Train credit and compliance teams on the expanded list of acceptable certifying professionals.
Ensure borrowers are informed about the updated certification requirements.
Who it affects
Scheduled commercial banks (excluding RRBs and LABs), Borrowers with consortium or multiple banking arrangements, Credit and compliance departments of banks
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 10:57 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn05 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Can we now accept certification from any professional, or only the three specified?
Only Company Secretaries, Chartered Accountants, and Cost Accountants are acceptable as per this circular. No other professionals are mentioned.
Is the revised Annex III mandatory for all new certifications?
The circular states that Annex III has been modified and a copy is enclosed. Banks are expected to use the revised format, though the circular does not explicitly state it is mandatory.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
📜 Read the original circular — full text as issued by RBI
4. The company has entered into transactions with business entities in which directors of the company were interested as detailed in Annexure….. .
5. The company has advanced loans, given guarantees and provided securities amounting to Rs. ____________ to its directors and/or persons or firms or companies in which directors were interested, and has complied with Section – 295 of the Companies Act , 1956.
6. The Company has made loans and investments; or given guarantees or provided securities to other business entities as detailed in Annexure ….and has complied with the provisions of the Companies Act, 1956.
7. The amount borrowed by the Company from its directors, members, financial institutions, banks and others were within the borrowing limits of the Company. Such borrowings were made by the Company in compliance with applicable laws. The break up of the Company's domestic borrowings were as detailed in Annexure ….. :
8. The Company has not defaulted in the repayment of public deposits, unsecured loans, debentures, facilities granted by banks, financial institutions and non-banking financial companies.
9. The Company has created, modified or satisfied charges on the assets of the company as detailed in Annexure…. Investments in wholly owned Subsidiaries and/or Joint Ventures abroad made by the company are as detailed in Annexure ……
10. Principal value of the forex exposure and Overseas Borrowings of the company as on ………… are as detailed in the Annexure under"
11. The Company has issued and allotted the securities to the persons-entitled thereto and has also issued letters, coupons, warrants and certificates thereof as applicable to the concerned persons and also redeemed its preference shares/debentures and bought back its shares within the stipulated time in compliance with the provisions of the Companies Act,1956 and other relevant statutes.
12. The Company has insured all its secured assets.
13. The Company has complied with the terms and conditions, set forth by the lending bank/financial institution at the time of availing any facility and also during the currency of the facility
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-2009/379 · issued 10 Feb 2009. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4830&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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