What changed
Previously, NBFCs had to submit the statutory auditor certificate by June 30 each year. Now, the certificate must be submitted within one month of finalizing the balance sheet, but no later than December 30 of that year.
What it means for you
This gives NBFCs more flexibility in timing their auditor certificate submission, aligning it with their balance sheet finalization schedule. Banks and lenders dealing with NBFCs should note the extended window for compliance verification.
What you must do
- Update internal compliance calendars to reflect the new December 30 deadline for NBFC auditor certificates.
- Advise NBFC clients to submit certificates within one month of balance sheet finalization, ensuring it's before December 30.
- Review existing NBFC agreements to ensure compliance with the revised submission timeline.
Who it affects
All Non-Banking Finance Companies (NBFCs), Statutory auditors of NBFCs, RBI's Department of Non-Banking Supervision
What is the new deadline for submitting the statutory auditor certificate?
The certificate must be submitted within one month from the date of finalization of the balance sheet, but in any case not later than December 30 of that financial year.
Does this apply to both deposit-accepting and non-deposit accepting NBFCs?
Yes, the amendment applies to both categories under the respective Prudential Norms Directions, 2007.
What happens if the certificate is submitted after December 30?
The circular does not specify penalties, but NBFCs must ensure compliance by December 30 to avoid potential regulatory action.