Announcement

Increase in the remuneration payable to Statutory Central and Branch Auditors of Public Sector Banks for the year 2003-04 onwards

The Reserve Bank of India has increased the audit remuneration for audit of Banks for the year 2003-04 onwards. The salient features are as follows : 1. Statutory Central Audits Audit fees increased by 25% across the board. The first slab of banks of total asset size upto Rs.12,000 crores has been changed to upto Rs.18,000 crores, with audit fees of Rs.4,25,000/-. Two new slabs have been added :   Total Asset Size Rs.   Rs.50,000 crores - Rs.70,000 crores 5,38,000   Rs.70,000 crores - Rs.90,000 crores 5,63,000   Above Rs.90,000 crores 5,88,000 2. Bank Branch Audits Audit fees increased by 25% across the board. Two new slabs has been added   Advances Fee   Rs.175 crores - Rs.300 crores Rs.2,00,000/-   Rs.300 crores - Rs.500 crores Rs.2,25,000/-   Above Rs.500 crores Rs.2,50,000/- 3. Fees for LFAR and Tax Audit, both for SCAs and Branch Auditors are also increased by 25% because these are calculated as percentages of the basic audit fees. 4. Fees for additional certifications for SCAs have been increased from earlier 10% of basic audit fees to 12% of basic audit fees. 5. Additional fees of Rs.20,000/- per certificate for additional certifications required by SEBI, will be payable by Banks to SCAs. 6. Fees for auditing of consolidated financial statements also payable to SCAs. 7. Daily conveyance charges for SCAs and Branch Auditors have been increased by 50%.