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CA Final · Advanced Auditing, Assurance and Professional Ethics · Special Features of Audit of Banks & Non-Banking Financial Companies

During an NBFC audit, CA Vikram obtains information that the RBI collected through inspection of the company. A journalist asks him for details of a borrower's account that the RBI obtained through audit. Under Section 45NB, how is such information treated?

Such information is confidential and must not be disclosed except in the circumstances Section 45NB allows. Information in returns submitted to the RBI or obtained by the Bank through audit or inspection is protected, so disclosing it to a journalist is not permitted.

  1. AIt may be freely disclosed once the audit report is signed
  2. BIt is treated as confidential and not disclosed except as the section providesCorrect
  3. CIt must be published by the NBFC in its annual report
  4. DIt may be disclosed to any person who pays the prescribed fee

Explanation

Section 45NB(1) treats information in statements or returns submitted by the NBFC, or obtained by the Bank through audit or inspection, as confidential, and it may not be disclosed except as the section provides. Signing the audit report or paying a fee does not lift the confidentiality, and the exceptions in Section 45NB(2) do not cover a journalist.

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