If the qualification of the RBI is not changed by including the name of the  Cost Accountants the profession will loose a big opportunity of the rising Banking Industry growth. The profession is not proactive is well proved. We should never look for inclusion of the profession under the  qualification of RBI. We need to go beyond and help the Indian economy to build a sustainable growth driven economy with negligible controlled risk. Cost Accountancy profession & its reports  are risk mitigating tools. Cost Audit and Cost Records should be made mandatory to be included along with Financial Statements and Net worth certificate for availing  loans. Rising NPA have been issue and this will continue to grow as the whole set of game is based on True and Fair view of the Financial statement projected by the Chartered Accountants.  Indian economy since its birth have only kept Chartered Accountants in the Banking industry either from senor most positions to  any other area. Till date only financial statement and net worth certificate provided by the Chartered Accountants used to be sole document for the availing loan. Cost Audit and Cost Records were never submitted along with these documents.

At the present time the financial audit is focused on the financial statements. Its clear that  this focus is unduly narrow. Cost Audit report and records would help the bank management to confirm the basis on which the financial statements have been prepared and for the auditor to make clear that they are relying on this statement. Cost Audit and Cost Records should be made mandatory to be included along with Financial Statements and Net worth certificate for availing  loans.

Today’s rising NPA is due to the lightness of regulation and the pursuit of unsustainable business models by boards were the most significant factors leading to the crisis. The efficient allocation of capital is fundamental to the capitalist economic model. Cost Audit record along with financial statements and net worth certificate would help the bank management to have deep understanding of the fairness of the financial statements certified and provided to the bank.Cost Audit report helps the industry and government to capitalize on strength and weakness of an industry or company in the long term.

Historically if cost Audit and cost records were included along with the fanatical statements  then the banking management might have got idea about the changing dynamics of the business operations and its functioning and the process of how the audit reports were derived. The report should have given understanding to the banks management about the various angles of the industry pricing strength n and cost competitiveness. Now if a company is losing its pricing competitiveness or loosing cost monopoly then obviously it gives an idea about the future of the business or industry as whole.

Inclusion of Cost Audit Report and Records along with financial statement for availing loan will be game changer for the banking industry getting from getting exploited in the long term.

Wrong credit off take have lead today banking industry to become skeptical about lending in today’s economic policy reform days. The prime reason behind is that banks never understood how the industry or which industry needs which type of capital allocation and depth of the same. Today the rural India and SME sector is facing the heat of non availability of loans as banks are reluctant to give the loan. Capital allocation should have been efficient historically provide the cost audit report and cost records were mandatory part of the financial statements to and net worth certificate to be submitted for availing loan.

Cost Audit report and record should have give the banking management to have deep understanding about the future pattern of price and cost aspects which is the prime factor while one repays the loan to the bank.

On the other hand currently Chartered Accountants hold a position either from the top management to the credit rating fellow and hence there is significant lobby of providing credit based which finally leads to NPA.

Now in this respect the RBI have come up with the qualification for CFO appointment in the banking industry which also takes the position for the payment banking industry For the CFO's post, the RBI recommended qualification as a Chartered Accountant and an experience of 15 year. The experience should include overseeing financial operations, preferably accounting and taxation matters, in banks or large corporates/state-run enterprises/financial institutions. Ten years of this should be with banks or financial institutions, including five years at a senior management level. The profession is not proactive is well proved. The appointed members at the helm are not working in parallel to the Industry otherwise this thing might not have happened. 

Inclusion of Cost Accountants under the definition of Accountants in the same QUALIFICATIONS will play competitive position for the banking industry. As cost accountants plays the role of ears and eyes of the government, inclusion of the same in the CFO qualification will at least keep a vigilance Angle on the banking industry operation.

Its well knows that Public sector banks are under intense pressure of NPA recognition and this credit goes to the ones who have ruled the position under the said qualification. If Indian economy needs a balanced approach then inclusion of peer professionals is highly required. Cost Accountants having 15 years of experience should be given an equal opportunity as their role is minimization of cost and control of risk management.

Cost Accountants are in the profession of Cost Audit and maintenance of cost records hence they have better view about the Indian industries requirement and their problems. This cost audit report will help banks also to access the position of the Indian industries and companies as these data have negligible position of getting cooked as compared to financial statements.

The payment banking system is growing up stupendously and it has a long way to go. Digital Transactions have taken a new shape and size and hence the ATM segment is going to vanish within the next couple of years or mat be within the next decade. Biometric based financial transactions are the new revolution. Indian consumers are getting used to digital transactions, money transfer, and micro payments. But this is only the tip of the iceberg. There are huge opportunities in social lending, micro investments, instant credit, daily instalments, etc.

This is the place where the payment banking industry has taken a new shape and opportunity growth. Even its being found that many established banks and financial firms are partnering with fintech companies to go digital. Payment banking system is going to change and fill in the gap of the traditional banking industry.

Well payment banks and Indian banking industry revolution plays pivotal role. Its has been found the said qualification people have huge role behind the rising NPA where from  credit ratings  tweaking of financial papers have played  pivotal role.  If the qualification of the RBI is not changed by including the name of the  Cost Accountants the profession will loose a big opportunity of the rising Banking Industry growth.

Till date banks never used the data of the cost audit and cost record where the banks management should have got an idea about the changes in the pattern and trend of the various changes and behavior of the business operation, its financial operation and its internal process of business growth/decline. Financial statements have created mess up which is very much clear from the current rising NPA. This is mainly due to sole dependency on the Financial statements certified by the chartered Accountants who despite of knowing the unfair condition of books of accounts and portrayed a brilliant picture for getting loan from the banks which finally leads to the NPA.

Cost Accountants reports should have been eye opener if the trend of business operation and internal manufacturing business process was investigated. In most of the cases one should have got an idea about how the unscrupulous management tweaked their report to get the books of accounts to portray a excellent beauty

A profession which is an eye and ear of the government has been ignored for the last several decades. Cost Accountants want only competitive position in the banking industry so that the history of unscrupulous NPA is not created in the long term. At the same time inclusion of cost audit and cost records along with financial statements certified by the chartered accountants for getting loans should also be made mandatory. This will safe guard and act as double check for the company’s financial statements.

For the betterment of the Indian economy and to have efficient allocation of resources to the various industries of the Indian economy to achieve a double digit GDP growth inclusion of cost audit and costs records along with inclusion of  equal opportunity to the Cost Accountants for filling up the vacancy at various banking levels should be provided.