Reserve Bank of India
An independent and effective Internal Audit function is integral to sound corporate governance in Urban Co-operative Banks and provides assurance to the Board and senior management on the adequacy and effectiveness of internal controls, risk management, and governance. Given the commonality of risks faced by Urban Cooperative Banks, there is a need for harmonised Internal Audit systems and processes based on uniform guiding principles. Risk-Based Internal Audit (RBIA) framework, as the third line of defence, is intended to strengthen the effectiveness of Internal Audit systems and processes in Urban Co-operative Banks.