ICAI Consults RBI To Check Role Of Auditors In PMC Bank Crisis

Economy

Chartered accountants' apex body ICAI has sought information from the RBI and other authorities on the PMC Bank crisis to check any auditor's involvement

Written By Press Trust Of India | Mumbai | Updated On:
ICAI

Chartered accountants' apex body ICAI has sought information from the RBI and other authorities on the PMC Bank crisis to check whether any auditor was involved in the alleged financial irregularities at the lender. Taking note of the "enormity of the matter", the ICAI on Wednesday said that it has triggered its disciplinary mechanism and has written to the bank as well as regulatory agencies concerned. The Institute of Chartered Accountants of India (ICAI) has written to the Vigilance Department of the RBI and the Commissioner of Maharashtra Co-operative Societies.

READ | RBI increases withdrawal limit to Rs.10000 for PMC Bank's depositors

ICAI seeks details on PMC crisis

In a statement, the institute said that it has sought requisite details of their findings as well as that of any "member/firm alleged to be involved in the matter. The information has also been sought from the statutory auditor of the bank "pertaining to financial years 2017-18 and 2018-19", it added. "ICAI would be actively pursuing the issue with the concerned regulators so as to examine the matter in detail and would also take action through its proactive disciplinary process against any member if so, found to be involved in the matter," the statement said.

The problems at the Punjab and Maharashtra Cooperative (PMC) Bank came to light after a whistleblower complaint, following which the Reserve Bank of India, on September 23, placed the lender under an administrator. The RBI has also barred the bank from carrying out regular banking activities.

READ | PMC bank account holders gather after RBI imposes restrictions

Suspended MD blames auditors

The suspended managing director of PMC Bank, Joy Thomas, has blamed the auditors for the mess at the bank, accusing them of only "superficially auditing" the books of the now crippled lender due to "time constraints".

The Mumbai Police on Monday filed a case against the former bank management and promoters of HDIL in the Punjab and Maharashtra Cooperative (PMC) Bank case and said a special investigation team will be probing the case.

READ | RBI and Centre dismiss reports of banks' closure, call them 'baseless'

READ | RBI imposes restrictions on PMC Bank, chaos and panic ensues

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