Current · Source: Reserve Bank of India · RBI/2010-11/339 · issued 28 Dec 2010 · ~1 min read
Quick answerBanks must now include a covering letter with quarterly concurrent auditor certificates, confirming all intermediary accounts are covered. This tightens oversight of electronic payment settlement accounts.
The rule, in the simplest words
Banks must send a covering letter (a short official note) with every quarterly report from the concurrent auditor (a person who checks bank records regularly).
The covering letter must say that the auditor's report covers ALL intermediary accounts (special accounts used for electronic payments like online shopping).
This rule helps make sure no intermediary account is left unchecked, so all transactions are watched for safety.
How it plays out — a real example
A branch operations officer in Indore, Priya, prepares the quarterly report for her bank's intermediary accounts. She adds a covering letter signed by her branch manager, confirming that the concurrent auditor checked every single account used for electronic payments, not missing any. This extra step makes Priya feel confident that her bank follows RBI rules and keeps customer money safe.
What changed
RBI issued a follow-up to its December 20, 2010 circular on intermediary accounts. Banks are now required to submit a covering letter certifying that the quarterly concurrent auditor certificate covers all intermediary accounts maintained with the bank.
What it means for you
This adds an extra compliance layer for banks handling intermediary accounts for electronic payments. Banks must ensure their concurrent auditors verify completeness of account coverage, reducing risk of unmonitored intermediary transactions.
What you must do
Update internal processes to include a covering letter with each quarterly concurrent auditor certificate.
Ensure your concurrent auditor reviews all intermediary accounts before certification.
Maintain a complete register of all intermediary accounts to support the certification.
Train compliance teams on the new covering letter requirement.
The circular is dated December 28, 2010, and the requirement applies from that date.
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/339
DPSS.CO.OSD. No. 1448/06.08.001/2010-2011
December 28, 2010
To
All Scheduled Commercial Banks
Dear Sir,
Directions for opening and operation of Accounts and settlement of
payment for electronic payment transactions involving intermediaries
Please refer to our circular Ref no. 1381/06.08.001/2010-11 dated December 20, 2010 on the captioned subject.
2. In continuation of the above directions, please note to forward a covering letter from your bank certifying that the quarterly certificate from the concurrent auditor being furnished to the Reserve Bank of India on the operations of the intermediaries' accounts includes all the intermediaries accounts maintained with your bank.
3. Please acknowledge receipt.
Yours faithfully
G Srinivas
(General Manager)
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/339 · issued 28 Dec 2010. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (Scheduled commercial banks, Concurrent auditors of banks, Compliance departments handling intermediary accounts), your first concrete step on “Intermediary Account Audit Certificates: RBI Clarification” is: “Update internal processes to include a covering letter with each quarterly concurrent auditor certificate.” (RBI issued this 28 Dec 2010).
Action required: Update internal processes to include a covering letter with each quarterly concurrent auditor certificate.
Action required: Ensure your concurrent auditor reviews all intermediary accounts before certification.
Action required: Maintain a complete register of all intermediary accounts to support the certification.
Action required: Train compliance teams on the new covering letter requirement.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
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 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=6176&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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