No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/281 · issued 31 Dec 2009 · ~1 min read
Quick answerRBI allows PSBs to appoint any CA firm as tax auditor at Head Office with Board/ACB-approved reasonable fee, replacing earlier SCA-linked mandate. The circular addresses remuneration from FY2006-07 onwards.
What changed
Previously, tax audit work was assigned to one of the Statutory Central Auditors (SCAs) with a prescribed fee. Now, PSBs can appoint any chartered accountant firm as tax auditor at the Head Office level, with fee decided by Board/ACB approval.
What it means for you
Banks gain flexibility to choose tax auditors independently, potentially reducing costs and improving audit quality. The Board/ACB must ensure fee reasonableness, shifting oversight responsibility to bank management.
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
Review current tax auditor appointment process at Head Office to align with new flexibility.
Ensure Board/ACB approval is obtained for fee and appointment of any CA firm as tax auditor.
Update internal policies to reflect the removal of mandatory SCA assignment for tax audit.
Communicate the change to audit committees and finance teams for compliance.
Who it affects
All nationalised banks, Associate banks of SBI, Statutory Central Auditors (SCAs), Chartered accountant firms
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 07:44 IST
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this circular apply to tax audits for years before 2006-07?
No, the circular explicitly states it applies from the year 2006-07 onwards.
Can we appoint a CA firm that is not one of our SCAs as tax auditor?
Yes, the circular allows PSBs to appoint any chartered accountant firm as tax auditor at the Head Office level, not limited to SCAs.
Who approves the fee for the tax auditor?
The fee must be approved by the bank's Board or Audit Committee of the Board (ACB) as reasonable.
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/281
Ref.DBS.ARS.BC.No.09/ 08.92.001/ 2009-10
December 31, 2009
The Chairman & Managing Director, all Nationalised Banks and
The Managing Director, Associate Banks of SBI
Dear Sir/Madam,
Remuneration payable to the Statutory Central and
Branch Auditors of Public Sector Banks from the year 2006-07
Please refer to our circular DBS.ARS.No.BC.3/08.92.001/2007-08 dated July 25, 2007 on the captioned subject.
2. The matter regarding assignment of the tax audit work to one of the SCAs and fee payable to SCA so selected was reviewed and it has been decided that PSBs may appoint at the Head office level also any chartered accountant firm as their tax auditor at a reasonable fee with the approval of their Board /ACB.
3. Please acknowledge receipt.
Yours faithfully
(P.S. Sharma)
General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/281 · issued 31 Dec 2009. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 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=5444&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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