Classification of Frauds
Frauds are classified into different categories, including encashment of altered/fake cheques involving two or more branches of the same bank.
Reporting of Frauds to Reserve Bank of India
Frauds are reported to RBI based on the amount involved:
Less than ₹ 1.00 lakh: Reported to RBI’s Fraud Monitoring Cell.
₹ 1.00 lakh to ₹ 25.00 lakh: Reported to RBI’s Regional Office.
₹ 25.00 lakh and above: Reported to RBI’s Central Office.
Frauds committed by unscrupulous borrowers and attempted frauds are also reported separately.
Provisioning and Quarterly Returns
Banks are required to make provisions for fraud accounts and submit quarterly returns to RBI, including:
FMR-2: Report on Frauds Outstanding.
FMR-3: Progress Report on Frauds.
Reports to the Board
Banks are required to report frauds to their Board, including:
Quarterly Review: Review of frauds in June, September, and December.
Annual Review: Review of frauds in March.
Special Committee: A special committee of the Board monitors high-value frauds.
Guidelines for Reporting of Frauds to Police
Banks are required to file police complaints in cases of fraud.
Chat with the Master Circular:
Download: Master Circular on Frauds – Classification and Reporting