Please refer to BSD circular No.09 dated October 12, 2009 and subsequent circular letter No.09 dated December 03, 2009 on the captioned subject.

2) It has been decided that the C.E.O/President of the banks/DFIs shall submit to this department, a detailed review report on ICFR for the quarter ended September 30, 2010 by October 31, 2010, duly approved by respective “Audit Committee” or “the Board of Directors.” This review report shall discuss in detail all the stages of road map issued vide BSD Circular No. 05 dated February 24, 2009, gaps identified, remedial measures taken and results of testing of controls.

3) Furthermore, as mentioned in the above referred circular, the statutory auditors of the Banks / DFIs, instead of expressing opinion on ICFR in the annual financial statements, can now submit to this department, a “Long Form Report”, through the management of respective bank / DFI for the year ended December 31, 2010, latest by March 31, 2011.

4) All CEO/ Presidents of banks / DFIs shall ensure that these timelines are met.

5) All other instructions on the subject shall, however, remain unchanged.

Please acknowledge receipt.