India Extends Risk-Based Audits to Housing Finance Companies

India’s central bank said Friday that it was extending tougher checks on internal risk systems to housing finance companies, after it imposed them on most other non-bank financial companies in February.

The Reserve Bank of India is extending its risk-based internal audit system to cover many housing-finance companies (HFCs). This means internal auditors at such lenders must check risk-management systems and controls, and look at transactions and accounting accuracy.

• The RBI told finance companies that all deposit-taking HFCs, and all HFCs with assets of 50 billion rupees ($684 million) or more, must adopt the system.
• The central bank imposed the ...