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NBFC Auditor Report Directions 2008 Updated

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/36 · issued 01 Jul 2013 · ~2 min read
Quick answerRBI updated the NBFC Auditor's Report Directions 2008 as of June 30, 2013. Auditors must now submit a separate report to the board covering registration status, asset/income patterns, and compliance for all NBFCs, with specific rules for deposit-taking and non-deposit-taking firms.

What changed

RBI issued a consolidated notification updating the NBFC Auditor's Report Directions 2008 to include all amendments up to June 30, 2013. The key change is that auditors must now verify and report on whether an NBFC's asset/income pattern as of March 31 qualifies it to continue holding its Certificate of Registration. This applies to both deposit-taking and non-deposit-taking NBFCs, with specific prudential norm references.

What it means for you

For NBFCs, this means auditors will scrutinize asset and income composition more closely to ensure ongoing eligibility for registration. Banks lending to NBFCs should expect more rigorous audit reports that flag any registration or compliance issues, potentially affecting credit risk assessments. Lenders must review these auditor reports to identify early warning signs of regulatory non-compliance.

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

Who it affects

All NBFCs (except residuary and miscellaneous non-banking companies), Auditors of NBFCs, Banks and financial institutions lending to NBFCs, RBI's Department of Non-Banking Supervision

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the main purpose of the updated NBFC Auditor's Report Directions?

The directions require auditors to submit a separate report to the NBFC's board covering specific regulatory compliance matters, including whether the company holds a valid Certificate of Registration and whether its asset/income pattern as of March 31 allows it to continue holding that registration.

Do these directions apply to all NBFCs?

They apply to every auditor of a non-banking financial company as defined in the RBI Act, but exclude residuary non-banking companies and miscellaneous non-banking companies as per the circular's address list.

How does this affect banks that lend to NBFCs?

Banks should review the auditor's report for any unfavorable or qualified statements regarding registration or prudential norms, as these could signal higher credit risk or regulatory issues with the NBFC borrower.

📜 Read the original circular — full text as issued by RBI
RBI/2013-14/36 DNBS (PD) CC No.334/03.02.001/2013-14 July 1, 2013 To The Chairman/CEOs of all Non-Banking Financial Companies (except Residuary Non-Banking Companies and Miscellaneous Non-Banking Companies) Dear Sirs, Notification as amended upto June 30, 2013 – “Non-Banking Financial Companies Auditor’s Report (Reserve Bank) Directions, 2008.” As you are aware, in order to have all current instructions on the subject at one place, the Reserve Bank of India issues circulars / notifications. The  instructions contained in the Notification No. DNBS.  201 /DG(VL)-2008 dated  September 18, 2008 updated as on June 30, 2013 are reproduced below. The updated notification has also been placed on the RBI web-site ( http://www.rbi.org.in ). Yours faithfully, (N. S. Vishwanathan) Principal Chief General Manager Table of Contents Para No
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/36 · issued 01 Jul 2013. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8152&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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