Implementation of Basel Accords I & II highlights routine maintenance of cash by banking institutions aligned with challenges undertaken. Hazard Primarily based Supervision (RBS) of banking companies flows from the Core concepts of Financial institution Supervision enunciated by Basel Committee on Banking Supervision. Institution of a sturdy Hazard Primarily based Inside Audit (RBIA) by financial institutions is an significant facilitator for the move in direction of RBS. The guide traces the technique of financial institutions to the interior audit perform and the need to have to swap the multiple varieties of inner audits by RBIA.The development in implementation of RBIA in India has been located to be uneven amongst various banking institutions. To recognize the main causes/differentiating elements for this the creator executed an extensive survey review of banking companies, inspectors/auditors and held conversations with senior executives of banking institutions and RBI for the duration of 2009-10. An ground breaking Ranking product for evaluating the organizational preparedness of financial institutions for implementation of RBIA has been formulated by the writer. Some critical problems have been identified and recommendations made for banking institutions and supervisor to initiate corrective motion and make the implementation of RBIA far more successful.