The blanket ban that was imposed upon the international audit and consultancy company, PricewaterhouseCoopers (PwC) by the Reserve Bank of India (RBI), has recently been withdrawn by the same authority. The officials from the RBI have informed that the ban was imposed upon the audit company from auditing banks and non-banking finance institutions and the central bank has already sent a written communication to the banks and NBFCs to confirm the withdrawal.
According to the sources related to the RBI, have stated that the banking regulator usually reviews every penalty after a specific period of time and this withdrawal has came after such a review performed by the RBI. However, when contacted, none of the officials from the PwC, agreed to say anything about the issue and they also did not send any response to a questionnaire that was faxed to them on Wednesday evening. The sources from the industry have informed that RBI banned the PricewaterhouseCoopers from auditing banks and NBFCs following its association with the now defunct Global Trust Bank as its auditor for the financial years of 2002 and 2003.
The sources said that the RBI did find that the audit company was under-provided for non-performing assets and it barred the PwC from bank audits in December 2004 and non banking finance companies in February 2005, for that reason only. The sources added that the Institute of Chartered Accountants of India was also referred to take a look on the case and the PwC then filed an appeal in the Kolkata High Court against the RBI order. According to the sources, the High court released a stay order on the RBI ban at that time and the banking regulator also did file an affidavit in response to the stay.
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| Posted : 3/17/2008 |
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