The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks – Internal Audit Function) Directions, 2026, effective immediately, introducing a Risk-Based Internal Audit (RBIA) framework for Commercial Banks. The Directions require Board-approved audit policies and risk-based
audit planning, strengthen the independence and governance of the Internal Audit Function, prescribe risk assessment and oversight mechanisms, and prohibit outsourcing of the audit function except in limited cases, thereby aligning internal audit practices with sound risk management and international
best practices.
