Chapter IIIB — Non-Banking Institutions and Financial Institutions
Section 45MA: Powers and duties of auditors
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 45MA gives statutory powers and duties to auditors of non-banking institutions, including reporting matters to RBI in the circumstances specified by the section/directions.
Operative provisionOfficial sources mappedProvision-specific decode
Finin2min - Section 45MA in 2 minutes
Statutory structure and clause / subsection decode
This map separates the operative limbs of this provision so thresholds, powers, conditions and exceptions are not collapsed into a single summary.
Rule 1
The auditor's role is not confined to the Companies Act audit
Rule 2
the RBI Act can require verification/reporting of specified regulatory matters and information.
Connected rule
Read it with Section 45MAA, which gives RBI a separate power to act against auditors for statutory/regulatory failures.
Worked practical example
Facts. An auditor who signs an NBFC regulatory certificate should test the RBI definition/calculation behind it rather than relying only on the financial-statement audit materiality threshold.
Compliance points and common mistakes
- Do not decide the issue from the heading alone. Map the facts to the operative words of Section 45MA and to each relevant subsection, clause, proviso or explanation shown above.
- Keep the statutory question separate from the operational overlay. Read it with Section 45MAA, which gives RBI a separate power to act against auditors for statutory/regulatory failures.
- Do not convert an exception, exemption or discretionary RBI/Government power into an automatic entitlement. Record the authority, conditions and effective date.
- Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.
Connected provisions and instruments
Questions and answers
What is the purpose of Section 45MA?
Powers and duties of auditors: Section 45MA gives statutory powers and duties to auditors of non-banking institutions, including reporting matters to RBI in the circumstances specified by the section/directions.
Which statutory limb should be checked first?
Rule 1 - The auditor's role is not confined to the Companies Act audit
What is the next legal boundary?
Rule 2 - the RBI Act can require verification/reporting of specified regulatory matters and information.
What record should support the conclusion?
Section 45MA file evidence: Audit files should identify RBI-specific certificates/reports, source ledgers, management representations and matters communicated to RBI.
Primary sources
- Department of Financial Services - consolidated RBI Act (states amendments through Finance Act, 2022)
- India Code - Reserve Bank of India Act, 1934
Source control for Section 45MA: use the official consolidated RBI Act for the statutory text and footnotes, then separately reconcile any post-Finance Act 2022 amendment, commencement notification or RBI instrument relevant to the event date.