Housing financing companies have actually been asked to put in location a RBIA structure by June 30The Reserve Bank of India (RBI) on Friday extended risk-based internal audit (RBIA) system for real estate financing business to boost quality and efficiency of their internal audit system.
The arrangements will use to all deposit-taking real estate financing business irrespective of their size, in addition to non-deposit-taking real estate finance business with property size of Rs 5,000 crore and above, the RBI stated in a statement.The real estate financing business have actually been asked to put in location a RBIA structure by June 30, 2022.
An efficient RBIA is an audit methodology that connects an organisation's total threat management framework and provides an assurance to the board of directors and senior management on quality and efficiency of an organisation's internal controls, risk management and governance-related systems and processes.The RBI says an internal audit function should broadly assess and add to general enhancement of an organisation's governance, threat management and control processes by utilizing a methodical and disciplined method.
The function is an essential part of sound business governance and considered as 3rd line of defence.