Near-real-time examination of transactions, controls and compliance so significant exceptions can be identified while operations are still continuing.
Live / near-real-time audit support for financial entities
Designed around the institution's approved audit scope, applicable RBI instructions, internal policies, risk profile and engagement terms.
Concurrent audit is an examination performed contemporaneously with transactions, or as near to the transaction as possible. RBI describes it as an important early-warning mechanism for timely detection of irregularities and lapses.
The objective is not simply to find mistakes after the period has ended. The value comes from shortening the gap between a transaction and its independent examination.
Important: Concurrent audit does not mean the auditor takes over management's decisions. The review checks whether transactions and decisions operate within the applicable policy, regulatory and delegated-authority framework.
Concurrent audit is primarily relevant to regulated or high-risk financial operations rather than ordinary personal finances.
Particularly useful for high-risk branches, specialised branches, centralised processing units and activities such as treasury, forex, retail assets, corporate/SME operations and other areas identified for concurrent review.
Strong relevanceAudit design should be aligned with the entity's applicable RBI framework, risk profile and internal audit architecture. RBI's RBIA framework applies to specified NBFC categories and focuses on governance, risk management and controls.
Scope depends on entityGenerally not a personal compliance requirement. An individual normally needs tax, accounting or financial-planning services instead. Concurrent audit becomes relevant only where the person operates or controls an organisation whose activities require this type of assurance.
Usually not applicableThe strongest business case exists where transaction volume, regulatory exposure, operational complexity or fraud risk makes retrospective checking too slow.
It is not a replacement for every other audit. Statutory audit, internal audit, risk-based internal audit, compliance reviews and other assurance functions can have different objectives and scopes.
It is also not a guarantee that fraud or error can never occur. Its value is in improving the probability of timely identification and escalation.
For a salaried person, freelancer, small individual investor or ordinary household, concurrent audit is generally not the appropriate service.
The consequence depends on whether concurrent audit is required by regulation, the institution's approved policy, or the engagement framework. It is not correct to say that every business automatically faces a statutory penalty simply for not having a concurrent audit.
Control failures, unusual transactions or documentation gaps may remain unnoticed for longer, increasing the cost and difficulty of correction.
Where high-risk transactions are not independently reviewed promptly, opportunities for irregularities or fraudulent manipulation may be harder to detect early.
If an applicable regulatory requirement or approved institutional policy requires concurrent audit, failure to implement or properly follow it can create compliance and governance concerns and may lead to adverse audit observations or escalation.
The exact checklist is determined by the appointing institution and its approved audit scope. RBI's commercial-bank framework provides examples of key areas.
Cash transactions, cash verification, remittances and related controls.
Loan documentation and transaction checks where included in scope.
Deposit-related transactions, controls and compliance checks.
Specialised financial activities where applicable.
Credit-card and internet-banking related risk areas where covered.
Checks against applicable internal procedures, delegated authority and regulatory instructions.
A practical engagement normally moves from scope definition to review, exception reporting, rectification and follow-up.
Identify locations, products, risk areas, records and applicable instructions.
Examine transactions as they occur or as close to occurrence as practicable.
Document deviations, control gaps and unusual or high-risk observations.
Minor issues may be corrected promptly; serious matters should be escalated according to the approved reporting system.
Track management action and ensure important observations are closed or appropriately reported.
This page is reviewed for 2026 using official RBI material. The principal commercial-bank concurrent-audit guideline located is RBI's July 16, 2015 revised guideline; RBI's 2021 RBIA framework is separately relevant to specified NBFCs and UCBs.