Chapter IV — General Provisions

Section 50: Auditors

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 50 allocates appointment and remuneration of RBI's statutory auditors to the Central Government.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 50 in 2 minutes

Legal effectSection 50 allocates appointment and remuneration of RBI's statutory auditors to the Central Government.

Operative ruleThe Central Government appoints not less than two auditors and fixes their remuneration. Each auditor's term cannot exceed one year, although reappointment is permitted.

Connected lawRead with Sections 51 and 52: Section 51 permits a special audit by the Comptroller and Auditor-General, while Section 52 states powers and duties of auditors.

File evidenceAn audit-governance file should preserve the Central Government appointment, term, remuneration decision and any reappointment, and distinguish ordinary statutory auditors from a special auditor under Section 51.

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.

Appointment

Central Government appoints at least two auditors.

Remuneration

Central Government fixes remuneration.

Term

No auditor may be appointed for a term exceeding one year.

Reappointment

An auditor may be reappointed.

Worked practical example

Facts. A governance note says RBI itself appoints the auditors for a three-year term. Both points are inconsistent with Section 50: the appointing authority is the Central Government and a term cannot exceed one year.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 50 and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. Read with Sections 51 and 52: Section 51 permits a special audit by the Comptroller and Auditor-General, while Section 52 states powers and duties of auditors.
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Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.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

Section 50 has no universal instrument dependency in this package. Add an RBI circular or direction only when its subject, entity and effective date cover the issue being analysed.

Questions and answers

What is the purpose of Section 50?

Auditors: Section 50 allocates appointment and remuneration of RBI's statutory auditors to the Central Government.

Which statutory limb should be checked first?

Appointment - Central Government appoints at least two auditors.

What is the next legal boundary?

Remuneration - Central Government fixes remuneration.

What record should support the conclusion?

Section 50 file evidence: An audit-governance file should preserve the Central Government appointment, term, remuneration decision and any reappointment, and distinguish ordinary statutory auditors from a special auditor under Section 51.

Primary sources

Source control for Section 50: 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.