Notification Detail :
RBI Circular /2014-15/590
DBS.CO.CFMC.BC.No.007/23.04.001/2014-15
May 7, 2015
The Chairmen & Chief Executive Officers of
all Scheduled Commercial Banks (excluding RRBs)
and All India Select Financial Institutions
Dear Sir/Madam,
Framework for dealing with loan frauds
The rising trend in loan related frauds in the financial sector is a matter of serious concern. Equally disquieting is the delay in detection and reporting of such frauds by banks. The issues relating to prevention, early detection and reporting of frauds has been looked into by an Internal Working Group (IWG) of the RBI which also held wide ranging consultations with various banks and other stakeholders. Based on the recommendations of this IWG, a framework for fraud risk management in banks is detailed in the Annex to this RBI circular. These recommendations may be read along with our instructions contained in the Master Circular DBS.CO.CFMC.BC.No.1 /23.04.001 /2014-15 dated July 01, 2014 on Frauds - Classification and Reporting. The guidelines contained in the Annex come into force with immediate effect.
Yours faithfully,
(Manoj Sharma)
Chief General Manager
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