With the passage of time, banks in India have made sufficient progress in introducing Risk-Based Internal Audit (RBIA) as per the guidelines of the Reserve Bank of India. But there are numerous issues associated with the implementation of RBIA, which need to be analyzed in order to resolve the same. In this context, a survey of banks was undertaken to assess the progress made in the implementation of RBIA and offer suggestions to resolve the issues, if any. The findings of the survey are interesting and help in identifying the relevant issues. The banks have to go a long way in resolving such issues. The present paper throws light on these aspects.
With the opening up of the Indian economy in line with the international scenario of globalization and consolidation, the stability of the financial system has become paramount. With the beginning of the process of financial reforms in India, the financial sector has undergone a transformation. The reforms in the financial sector—the capital markets or banking— have seen a shift from a highly regulated environment to a substantial interplay of market forces. For instance, the capital markets have seen many new financial instruments and players being introduced, making the transactions and operations more complex. The interplay of market forces and the complexity of financial instruments exposed the banking sector to various risks, from which they were insulated hitherto. Being a part of the reform process, the supervisory functions play a great role in stabilizing the financial system. |
