Sirs / Madam,
ON INTERNAL CONTROLS
refer to Para 7 of the Guidelines on Internal Controls issued
vide BSD Circular No.7 of May 27, 2004.
It has been decided that banks/DFIs will include a Statement
on Internal Controls in their Annual Reports as of 31st December,
2004, as required vide above referred Para 7 of the Guidelines.
However, the compliance of the requirement regarding attestation
of this Statement by the External Auditors as per Para 7 (c)
has been deferred for one year and will now be effective from
the year ending on December 31, 2005. The banks/DFIs are required
to achieve full compliance of the Guidelines on Internal Controls
within this extended time period.
Other instructions on the subject shall remain unchanged.
Please acknowledge receipt.