Auditor Appointment Policy

1. Introduction & Purpose

The Reserve Bank of India (RBI) has issued a "Policy for Appointment of Statutory Auditors (SAs)" to enhance transparency and ensure the independence of audit processes in Co-operative Banks. The Municipal Co-Op Bank Ltd. Mumbai strictly adheres to these guidelines to maintain high standards of institutional governance.

2. Eligibility Criteria

For the appointment of Statutory Auditors, the following criteria are essential:

• The audit firm must be on the RBI-approved panel of auditors.
• The firm must have adequate experience in auditing Commercial/Co-operative Banks.
• No conflict of interest with the Bank's management or significant shareholders.
• The firm must have a minimum number of full-time Chartered Accountants associated with it.

3. Tenure and Rotation

To ensure impartiality, the bank follows a strict rotation policy for Statutory Auditors:

• Statutory Auditors are appointed for a continuous period of three years.
• A mandatory "cooling off" period of at least six years is required before re-appointment.
• The Bank reserves the right to terminate the services of an SA at any point for verified non-performance or ethical breaches.