There is need to examine whether RBI needs to be brought under the purview of audit by the Comptroller and Auditor General of India, feels CAG Shashi Kant Sharma. He said in the light of the growing incidence of financial frauds, it is a thought for consideration as to whether, in future, the CAG’s audit should look into the risks and vulnerabilities facing the whole financial sector as well as the ability and effectiveness of regulators to mitigate such risks. CAG does not audit the RBI as the latter’s auditors are appointed by central government under the provisions of the RBI Act. However, CAG conducts audit of other financial sector regulators like Sebi, IRDA and PFRDA but does not conduct performance audits, he pointed out. The CAG mentioned how the Federal Reserve in the U.S. and the Bank of England in the U.K. had both come under greater scrutiny over the last few years.
