{"what_this_is":"The machine-readable twin of the BankPulse page for one RBI rulebook. Same points, same dates, same paragraph references as the page a person reads. RBI's own wording is not reproduced here: each point names the RBI paragraph, the character offset into the text BankPulse read and the sha256 of that text, so the claim can be checked against RBI's own document.","schema_version":1,"release_id":"d653cdb0a5","generated_at":"2026-09-15T00:33:59.117975+00:00","id":"md13588","title":"Reserve Bank of India (Non-Banking Financial Companies - Statutory Audit) Directions, 2026","document_kind":"Directions","page":"https://bankpulse.ai/rule/md13588","status":"In force","importance":{"code":"MR","label":"MUST READ","weight":"Must read","why":"Binding RBI Directions naming this institution class in the title","layer":"bankpulse_inference"},"applies_to":{"shown":"Finance companies","class_code":"NBFC","from":"the document's own title","layer":"bankpulse_inference"},"dates":{"prid":"md13588","mode":"four_dates_v1","published":{"label":"Published","value":"Jul 31, 2026","stated":true,"why":"The day RBI put this document out."},"effective":{"label":"Starts to apply","value":"","stated":false,"why":"Not stated separately in this document. Read the rule itself before you assume a start date."},"transition":{"label":"Time to get ready","value":"","stated":false,"why":"Cannot be worked out until the day it starts to apply is known."},"deadline":{"label":"Last date to act","value":"","stated":false,"why":"No date to act by was found in this document. Other dates may sit inside single paragraphs."},"sources":{"published":"doc_date in data/highlights/md13588.json","effective":"none held","transition":"none held","deadline":"none held"}},"rbi_source":{"url":"https://rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=13588","document_date":"Jul 31, 2026","read_by_bankpulse":"2026-08-21 16:25:54 UTC","text_sha256":"e158c138eac9b8ebfbeeab011f94bd837ad54a236e4835d1ab8289ad353e6a81","word_count":4490,"standing_last_checked":"Standing checked on RBI’s Master Directions index, 15 September 2026, 5:58 am IST."},"counts":{"points_shown":39,"points_naming_an_rbi_paragraph":39,"points_stored":39,"actions":0,"amendments":0},"points":[{"n":1,"claim":"md13588-a45006fe","page_group":"Chapter I. Preliminary","stored_section":"THE CORE IDEA","heading":"Audit rules for NBFCs","plain_english":"This paper sets who may audit non-banking financial companies and for how long.","rbi_paragraph":"Para 1","rbi_char_offset":3149,"weight":"BACKGROUND","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p1","layer":"bankpulse"},{"n":2,"claim":"md13588-0e747d72","page_group":"Chapter I. Preliminary","stored_section":"KEY DATES","heading":"Start date","plain_english":"These Directions came into effect immediately upon issuance.","rbi_paragraph":"Para 2","rbi_char_offset":3292,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"There is no gap here between issue and effect. The Directions come into effect immediately upon issuance. A bank cannot wait for a separate start date, because there is none.","anchor":"https://bankpulse.ai/rule/md13588#p2","layer":"bankpulse"},{"n":3,"claim":"md13588-c73f707c","page_group":"Chapter I. Preliminary","stored_section":"WHO IT APPLIES TO","heading":"Who is covered","plain_english":"These Directions apply to every non-banking financial company.","rbi_paragraph":"Para 3","rbi_char_offset":3362,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":["housing-loan"],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p3","layer":"bankpulse"},{"n":1,"claim":"md13588-f5184459","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"Watch the auditor's independence","plain_english":"The audit committee must watch the auditor's independence and any clash of interest.","rbi_paragraph":"Para 7","rbi_char_offset":7731,"weight":"DO IT","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p4","layer":"bankpulse"},{"n":2,"claim":"md13588-3aa3e141","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"Flag a concern upward","plain_english":"Any such concern must be flagged to the Board and to RBI's supervision department.","rbi_paragraph":"Para 7","rbi_char_offset":7926,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p5","layer":"bankpulse"},{"n":3,"claim":"md13588-38e75340","page_group":"Chapter II. Governance and Oversight","stored_section":"KEY DATES","heading":"Review the auditor yearly","plain_english":"The Board or audit committee must review the auditor's work once a year.","rbi_paragraph":"Para 8","rbi_char_offset":8313,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p6","layer":"bankpulse"},{"n":4,"claim":"md13588-cde966ac","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"Send the firm's full details","plain_english":"Such a report goes with Board approval and the full details of the audit firm.","rbi_paragraph":"Para 8","rbi_char_offset":8619,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p7","layer":"bankpulse"},{"n":5,"claim":"md13588-4aa7777f","page_group":"Chapter II. Governance and Oversight","stored_section":"WHO SHOULD ACT","heading":"Recommend the fee","plain_english":"The Board or committee recommends the audit fee to the competent authority.","rbi_paragraph":"Para 9","rbi_char_offset":8867,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p8","layer":"bankpulse"},{"n":1,"claim":"md13588-22a5fc00","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHAT CHANGES","heading":"Fifteen thousand crore, joint audit","plain_english":"An NBFC of ₹15,000 crore or more must have a joint audit by at least two firms.","rbi_paragraph":"Para 11","rbi_char_offset":9595,"weight":"MUST KNOW","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":"Suppose a bank's assets are ₹18,000 crore at the end of the previous year. That is ₹15,000 crore or more. The statutory audit must then be a joint audit by at least two firms.","anchor":"https://bankpulse.ai/rule/md13588#p9","layer":"bankpulse"},{"n":2,"claim":"md13588-c1261d5c","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHAT CHANGES","heading":"Joint auditors must be separate","plain_english":"Joint auditors must share no partners and must not be in the same network.","rbi_paragraph":"Para 11","rbi_char_offset":9969,"weight":"MUST KNOW","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p10","layer":"bankpulse"},{"n":3,"claim":"md13588-2feccb07","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHAT CHANGES","heading":"Not a partner elsewhere","plain_english":"Such a partner must not be a partner in another audit firm.","rbi_paragraph":"Para 14(1)","rbi_char_offset":12940,"weight":"MUST KNOW","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p11","layer":"bankpulse"},{"n":4,"claim":"md13588-2991ea2b","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHAT CHANGES","heading":"Not employed elsewhere","plain_english":"Such a partner must not be employed elsewhere, full time or part time.","rbi_paragraph":"Para 14(2)","rbi_char_offset":12999,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p12","layer":"bankpulse"},{"n":5,"claim":"md13588-4772e891","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHAT CHANGES","heading":"Not in separate practice","plain_english":"Such a partner must not practise in his own name or otherwise be in practice.","rbi_paragraph":"Para 14(3)","rbi_char_offset":13064,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p13","layer":"bankpulse"},{"n":6,"claim":"md13588-ba46ad9c","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHAT CHANGES","heading":"Merger waits two years","plain_english":"A merger of audit firms counts only after two years; a demerger counts at once.","rbi_paragraph":"Para 14(4)","rbi_char_offset":14356,"weight":"MUST KNOW","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p14","layer":"bankpulse"},{"n":7,"claim":"md13588-4e1861c2","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHAT CHANGES","heading":"One year for the staff","plain_english":"Professional staff must have been with the firm a year to be counted.","rbi_paragraph":"Para 14(4)","rbi_char_offset":14747,"weight":"MUST KNOW","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p15","layer":"bankpulse"},{"n":8,"claim":"md13588-26c39c17","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHAT CHANGES","heading":"No debarred firm","plain_english":"A firm debarred by any government agency, the reporting authority or RBI is out.","rbi_paragraph":"Para 15(2)","rbi_char_offset":15167,"weight":"MUST KNOW","role":"Compliance","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p16","layer":"bankpulse"},{"n":9,"claim":"md13588-653cc7f1","page_group":"Chapter III. Guidelines for Appointment","stored_section":"KEY DATES","heading":"Three continuous years","plain_english":"An auditor is appointed for a continuous term of three years, eligibility permitting.","rbi_paragraph":"Para 23","rbi_char_offset":21483,"weight":"MUST KNOW","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p17","layer":"bankpulse"},{"n":10,"claim":"md13588-872345a6","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHAT CHANGES","heading":"No sub-contracting","plain_english":"Sharing or sub-contracting the audit to another firm in the network is not allowed.","rbi_paragraph":"Para 26","rbi_char_offset":23861,"weight":"MUST KNOW","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p18","layer":"bankpulse"},{"n":11,"claim":"md13588-bfa29d5f","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHO SHOULD ACT","heading":"Split the work first","plain_english":"Work must be split between the auditors before the audit starts, in consultation with them.","rbi_paragraph":"Para 11(3)","rbi_char_offset":10150,"weight":"DO IT","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p19","layer":"bankpulse"},{"n":12,"claim":"md13588-babb0a39","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHO SHOULD ACT","heading":"Check the partner's income","plain_english":"The Board must satisfy itself that the partner earns enough from the firm to count as a full-time partner.","rbi_paragraph":"Para 14(4)","rbi_char_offset":13288,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p20","layer":"bankpulse"},{"n":13,"claim":"md13588-68a21083","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHO SHOULD ACT","heading":"Follow the code of ethics","plain_english":"The appointment must follow the institute's code of ethics and raise no clash of interest.","rbi_paragraph":"Para 15(3)","rbi_char_offset":15418,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p21","layer":"bankpulse"},{"n":14,"claim":"md13588-4791b6e7","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHO SHOULD ACT","heading":"Regain eligibility before starting","plain_english":"A firm that loses eligibility must regain it before the annual audit begins.","rbi_paragraph":"Para 16(1)","rbi_char_offset":17271,"weight":"DO IT","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p22","layer":"bankpulse"},{"n":15,"claim":"md13588-3bccbb2b","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHO SHOULD ACT","heading":"Go to the committee first","plain_english":"Where the management blocks the audit, the auditor must approach the audit committee.","rbi_paragraph":"Para 17","rbi_char_offset":17927,"weight":"DO IT","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p23","layer":"bankpulse"},{"n":16,"claim":"md13588-c8ff08ee","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHO SHOULD ACT","heading":"But check the clash","plain_english":"The Board must still see there is no clash of interest and the auditor stays independent.","rbi_paragraph":"Para 18","rbi_char_offset":18858,"weight":"DO IT","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p24","layer":"bankpulse"},{"n":17,"claim":"md13588-69c07178","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHO SHOULD ACT","heading":"Follow the standards","plain_english":"The auditor must follow the professional standards with the highest diligence.","rbi_paragraph":"Para 21","rbi_char_offset":20852,"weight":"DO IT","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p25","layer":"bankpulse"},{"n":18,"claim":"md13588-334b7178","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHAT CHANGES","heading":"Incoming must be unconnected","plain_english":"The incoming firm is ineligible if it is tied to the outgoing one or its network.","rbi_paragraph":"Para 26","rbi_char_offset":23989,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p26","layer":"bankpulse"},{"n":19,"claim":"md13588-d4b08869","page_group":"Chapter III. Guidelines for Appointment","stored_section":"THE CORE IDEA","heading":"Fee must fit the work","plain_english":"The fee must be reasonable and match the size, spread and complexity of the audit.","rbi_paragraph":"Para 29","rbi_char_offset":24751,"weight":"DO IT","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p27","layer":"bankpulse"},{"n":20,"claim":"md13588-ac45a027","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHO SHOULD ACT","heading":"Take the firm's certificate","plain_english":"A certificate must be taken from the firm proposed, in the given form.","rbi_paragraph":"Para 30(3)","rbi_char_offset":25880,"weight":"DO IT","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p28","layer":"bankpulse"},{"n":21,"claim":"md13588-d877f453","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHO SHOULD ACT","heading":"Board fixes the number","plain_english":"The Board decides how many auditors to appoint, within the set limits.","rbi_paragraph":"Para 12","rbi_char_offset":10368,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p29","layer":"bankpulse"},{"n":22,"claim":"md13588-05b25b57","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHO SHOULD ACT","heading":"Meet the eligibility rules","plain_english":"Only an audit firm meeting the eligibility rules may be appointed.","rbi_paragraph":"Para 14","rbi_char_offset":11527,"weight":"BACKGROUND","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p30","layer":"bankpulse"},{"n":23,"claim":"md13588-e256cd19","page_group":"Chapter III. Guidelines for Appointment","stored_section":"THE CORE IDEA","heading":"What counts as experience","plain_english":"Audit experience means work as a central or branch auditor of a bank or institution.","rbi_paragraph":"Para 14(4)","rbi_char_offset":14116,"weight":"BACKGROUND","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p31","layer":"bankpulse"},{"n":24,"claim":"md13588-cfd8cda2","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHAT CHANGES","heading":"Board only in two cases","plain_english":"The auditor goes straight to the Board only where there is no committee, or a member is involved.","rbi_paragraph":"Para 17","rbi_char_offset":18088,"weight":"BACKGROUND","role":"Board","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p32","layer":"bankpulse"},{"n":25,"claim":"md13588-cdda09af","page_group":"Chapter III. Guidelines for Appointment","stored_section":"THE CORE IDEA","heading":"A large borrower, no bar","plain_english":"Auditing a company that is a large borrower does not by itself bar the firm.","rbi_paragraph":"Para 18","rbi_char_offset":18556,"weight":"BACKGROUND","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p33","layer":"bankpulse"},{"n":26,"claim":"md13588-937870bc","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHAT CHANGES","heading":"Tax work is allowed","plain_english":"Tax audit, tax representation and tax advice do not normally create a clash.","rbi_paragraph":"Para 19(1)","rbi_char_offset":19652,"weight":"BACKGROUND","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p34","layer":"bankpulse"},{"n":27,"claim":"md13588-428a56d6","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHO IT APPLIES TO","heading":"Bars reach the network","plain_english":"These bars also apply to any firm in the same network or sharing a partner.","rbi_paragraph":"Para 20","rbi_char_offset":20613,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p35","layer":"bankpulse"},{"n":28,"claim":"md13588-14f3db2c","page_group":"Chapter III. Guidelines for Appointment","stored_section":"THE CORE IDEA","heading":"A network counts as one","plain_english":"Firms in one network or sharing partners are treated as a single firm for allotment.","rbi_paragraph":"Para 26","rbi_char_offset":23758,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p36","layer":"bankpulse"},{"n":29,"claim":"md13588-9c012bee","page_group":"Chapter III. Guidelines for Appointment","stored_section":"WHAT CHANGES","heading":"Fee follows the statute","plain_english":"The audit fee is decided under the relevant statutory and regulatory provisions.","rbi_paragraph":"Para 28","rbi_char_offset":24614,"weight":"BACKGROUND","role":"Audit","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p37","layer":"bankpulse"},{"n":1,"claim":"md13588-b053e786","page_group":"Chapter IV. Repeal and Other Provisions","stored_section":"THE CORE IDEA","heading":"Old repeals stand","plain_english":"Anything repealed before these Directions stays repealed.","rbi_paragraph":"Para 31","rbi_char_offset":27013,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p38","layer":"bankpulse"},{"n":2,"claim":"md13588-b6c42903","page_group":"Chapter IV. Repeal and Other Provisions","stored_section":"THE CORE IDEA","heading":"These add to other law","plain_english":"These Directions add to any other law and do not cut it down.","rbi_paragraph":"Para 33","rbi_char_offset":28164,"weight":"BACKGROUND","role":"All staff","team":null,"products_covered":[],"products_excluded":[],"bankpulse_example":null,"anchor":"https://bankpulse.ai/rule/md13588#p39","layer":"bankpulse"}],"actions":[],"amendments":[],"layers":{"rbi_source":"Facts taken from RBI's own document.","bankpulse":"BankPulse's plain-English summary of RBI's document.","bankpulse_inference":"BankPulse's own inference, not stated by RBI."},"rbi_wording_not_included":"By design. BankPulse never republishes RBI's exact sentences. Use rbi_paragraph with rbi_source.url to read RBI's own words.","terms":"BankPulse's plain-English summaries are BankPulse's own work. The underlying regulation is the Reserve Bank of India's. Always check the RBI document named in rbi_source before acting."}