Fraud Classification and Reporting Guidelines
The Reserve Bank of India has outlined guidelines for the classification and reporting of frauds by banks.
Classification of Frauds: Frauds are to be classified and reported to the Reserve Bank of India.
Reporting of Frauds: Banks are required to report frauds to the RBI, providing details such as the amount involved, medium of reporting, and timeline for reporting.
Quarterly Returns: Banks must submit quarterly returns, including a report on outstanding frauds (FMR 2) and a progress report on frauds (FMR 3).
Delays in Reporting: Delays in reporting frauds will be viewed seriously, and banks must provide reasons for such delays.
Reports to the Board: Banks must submit quarterly and annual reviews of frauds to their Board, as well as reports to a special committee of the Board.
Attempted Frauds: Cases of attempted frauds must also be reported.
Closure of Fraud Cases: Banks must report the closure of fraud cases.
Reporting to Police/CBI: Banks must report frauds to the police or CBI, depending on the category of bank and amount involved in the fraud.
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Download: Frauds – Classification and Reporting