image

Frauds Classification and Reporting

RBI/2012-13/505
DBS.FrMC.BC.No. 6/23.04.001/2012-13

May 23, 2013

The Chairmen & Chief Executive Officers of all
Scheduled Commercial Banks (excluding RRBs)
and All India Select Financial Institutions

Dear Sir,

Frauds Classification and Reporting

Please refer to Para 3.1.3 of circular DBS. FrMC. BC. No. 1/23.04.001/2012-13 dated July 02, 2012 i.e. the Master Circular on ‘Frauds Classification and Reporting’ which requires commercial banks to furnish in hard copies the FMR-1 reports in all cases detected at bank™s subsidiaries/affiliates/joint ventures.

2. It has since been decided to partially amend Para 3.1.3 of Master Circular DBS. FrMC. BC. No. 1/23.04.001/2012-13 dated July 02, 2012 on ‘Frauds Classification and Reporting™ by providing that in case the subsidiary of the bank is an entity which is regulated by Reserve Bank of India and is independently required to report the cases of fraud to RBI in terms of guidelines applicable to that subsidiary/affiliate/joint venture, the parent bank need not furnish the hard copy of the FMR-1 statement in respect of fraud cases detected at such subsidiary/affiliate/joint venture.

Yours faithfully

(R. K. Sharma)
General Manager

Tags: Banking ServicesBusinessFinancial institutionFinancial servicesGeneral managerIndiaReserve Bank of IndiaRun batted in

profile image

About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

Comments

  1. RBI is admitting that the reporting Frauds to them by the banks are not properly reported . It is the long practice of the Banks not to report correctly.
    Bank overall systems of audit by statutory auditors from RBI approved panel of Auditors should be done . and give them free hand and sufficient time to complete the audit and report thereon . RBI should accept the recommendation by ICAI. It is my personal views as I am in the profession since 1970. Things are deteriorated most.

    CA. Subhash Chandra Podder , FCA
    Kolkata

Corporate Law Referencer

Recent Articles

Recent Legal updates

Recent Gst Updates