Non Banking Finance Companies (NBFCs) is a constituent of the institutional structure of the organized financial system in India. NBFCs perform a significant and important role in our financial system. They facilitate the process of channelising of public savings and provide better return to the depositors. We are aware that due to liberalization and globalisation, banking industry and financial sector has gone through many reforms. In the present economic environment it is very difficult to cater need of society by Banks alone so role of Non Banking Finance Companies and Micro Finance Companies become indispensable.
While conducting audit of NBFCs, members are requested to kindly go through the RBI Directions to Auditors of NBFCs issued vide circular no RBI/2009-10/4 DNBS(PD)CC No.146 /03.02.001/2009-10 dated July 1, 2009.
[PDC Direcotrate, ICAI]