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

Shreyas, a CA, is auditor of Orion Finance Ltd, an NBFC. A journalist asks him for details of RBI inspection findings on the company, which he saw while auditing. Under Section 45NB of the RBI Act, how is information obtained by the Bank through audit or inspection treated?

Such information is confidential and must not be disclosed except in the cases the section allows. Section 45NB(1) treats information in returns, or obtained by the RBI through audit or inspection, as confidential, so the auditor should decline the journalist's request.

  1. AIt is public information once the audit report is signed
  2. BIt is confidential and may not be disclosed except as the section providesCorrect
  3. CIt may be given to any person who requests it in the public interest
  4. DIt is confidential only for deposit-taking NBFCs

Explanation

Section 45NB(1) says information relating to an NBFC contained in returns or obtained by the Bank through audit or inspection is confidential and not to be disclosed except as the section allows. The exceptions are specific, such as RBI publication in consolidated form without names, and do not include journalist requests.

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