The Reserve Bank of India vide its letter no. DBS.ARS.No. B.C. 15/08:91:001/2004-05 dated 6th January, 2005 on the above subject has informed Banks that it has been decided to modify the format of declaration of indebtedness to be obtained from the partners/proprietors of audit firms to be appointed as statutory auditors of banks, which was issued vide their circular ref. DBS.ARS.No. B.C. 09/08:91:001/2003-04 dated 20th April, 2004. Banks have, therefore, been advised by RBI to arrange to obtain the declaration in the format given hereunder.

It has also been clarified by RBI that the term "family", wherever figures in the declaration, will include, besides the spouse, only children, parents, brothers, sisters or any of them, who are wholly/mainly dependent on the Chartered Accountants.

2. In case the above declaration or any part thereof is proved to be incorrect, the bank is free to advise the details thereof to RBI and Institute of Chartered Accountants of India for initiating necessary action against me.

Signature of the proprietor/
main partner

* For the purpose of this declaration, the credit facilities availed by companies where the partner / proprietor of a firm has been appointed as non-executive director in a professional capacity having no financial interest shall not be included.

Note: The above declaration must be furnished on the letter head of the proprietory concern / audit firm.