RBI vide notification no. RBI/2020-21/83 dated January 07, 2021 has issued framework for Risk Based Internal Audit(RBIA).
- RBI stated that banks are required to put in place a risk based internal audit (RBIA) system as part of their internal control framework.
- The Head of Internal Audit (HIA) shall be a senior executive of the bank who shall have the ability to exercise independent judgement.
- Except for the entities where the internal audit function is a specialised function and managed by career internal auditors, the HIA shall be appointed for a reasonably long period, preferably for a minimum of three years.
- The HIA shall directly report to either the Audit Committee of the Board (ACB) / MD & CEO or Whole Time Director (WTD).
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12011&Mode=0