RBI changes fraud reporting norms for banks

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RBI changes fraud reporting norms for banks
Reserve Bank of India (RBI) has asked the banks to stop the practice of reporting attempted fraud cases involving Rs 1 crore or above to its Fraud Monitoring Cell.

RBI released a notification and said, "On a review and as a part of rationalisation of process and procedures ... the practice of reporting attempted fraud cases of Rs 10 million and above to Reserve Bank of India, Fraud Monitoring Cell, Department of Banking Supervision, Central office may be discontinued from the date of the circular."

However, RBI said, that the banks could place its individual cases involving Rs 1 crore and above before the audit committee of its board.

According to the existing guidelines, banks have to report the fraud to the RBI's fraud monitoring cell within two weeks of the banks coming to know that the attempt to defraud the bank had failed or was foiled if the amount involved is Rs 1 crore and above.

Read more about: rbi
Story first published: Friday, November 16, 2012, 9:30 [IST]
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