Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: form 3cd :: due date for vat payment :: cpt :: articles on VAT and GST in India :: empanelment :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT Audit :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
« Latest Circulars »
 Formation of seven new districts in the State of Manipur - Assignment of Lead Bank Responsibility
 Availability of LAF and MSF windows on March 28, 2017 (RTGS Working Mumbai Holiday)
  Payment systems to remain open on all days from March 25, 2017 to April 1, 2017
 Availability of LAF and MSF windows on March 25 and 26, 2017 (Saturday & Sunday)
 RBI Working Paper Series No. 5/2017: Comparison of Consumer and Wholesale Prices Indices in India: An Analysis of Properties and Sources of Divergence
 All Agency Banks and select offices of RBI to remain open on all days from March 25, 2017 to April 1, 2017
 RBI-Sources of Variation in Foreign Exchange Reserves in India during April-December 2016
 Developments in India’s Balance of Payments during the Third Quarter (October-December) of 2016-17
 RBI signs Memorandum of Understanding(MoU) on “Supervisory Cooperation and Exchange of Supervisory Information” with the Bank of Thailand
 RBI-Meeting Schedule of the Monetary Policy Committee for 2017-18
 RBI to conduct Overnight, 7 day and 14 day Variable rate Reverse Repo auctions under LAF on March 22, 2017

RBI-Frauds- Classification and Reporting
March, 12th 2013

RBI/2012-13/433
UBD CO BPD (PCB) Cir. No.41/12.05.001/2012-13

March 08, 2013

Chief Executive Officer of
All Primary (Urban) Co-operative Banks

Madam / Dear Sir,

Frauds- Classification and Reporting

Please refer to our Master Circular UBD.CO.BPD. (PCB) MC No. 17/12.05.001/2012-13 dated July 02, 2012 advising the consolidation of our updated instructions/ guidelines on the captioned subject.

2. As per para 3.5 of the above Master Circular, cases of attempted fraud, where likely loss would have been Rs. 25 lakhs or more had the fraud taken place, should be reported by the bank to the Fraud Monitoring Cell, Department of Banking Supervision, Reserve Bank of India, Central Office, Mumbai within two weeks of the bank coming to know that the attempt to defraud the bank failed or was foiled.

3. On review and as a part of rationalisation of process and procedures, it has been decided to amend para 3.5 of Master Circular UBD.CO.BPD. (PCB) MC No. 17/12.05.001/2012-13 dated July 02, 2012 on ‘Frauds- Classification and Reporting’. Accordingly, the practice of reporting attempted fraud, where likely loss would have been Rs. 25 lakhs or more to Fraud Monitoring Cell, Department of Banking Supervision, Reserve Bank of India, Central Office, Mumbai may be discontinued from the date of the circular.

4. However, the bank should continue to place the individual cases of attempted fraud involving Rs.25 lakhs or more above before the Audit Committee of its Board as hitherto as per the instructions contained in the above mentioned Master Circular. The report containing attempted frauds which is to be placed before the Audit Committee of the Board should cover the following viz.

  • The modus of operandi of attempted fraud

  • How the attempt did not materialize into a fraud or how the attempt failed/ or was foiled.

  • The measures taken by the bank to strengthen the existing systems and controls.

  • New systems and controls put in place in the area where fraud was attempted,

  • In addition yearly consolidated review of such cases detected during the year containing information such as area of operations where such attempts were made, effectiveness of new process and procedures put in place during the year, trend of such cases during the last three years, need for the further change in process and procedures, if any, etc as on March 31 every year starting from the year ending March 31, 2013 within three months from the end of the relative year.

5. Further, it has been decided to amend para 5.2.1, 5.2.3, and 5.3.1 of above Master Circular relating to reporting of fraud cases to respective Regional Offices of Reserve Bank of India as under;

5.2 Quarterly Review of Frauds

5.2.1 Information relating to frauds for the quarters ending June, September and December may be placed before the Audit Committee of the Board of Directors during the month following the quarter, to which it pertains, irrespective of whether or not these are required to be placed before the Board/ Management Committee in terms of the Calendar of Reviews prescribed by the Reserve Bank of India.

5.2.3 A separate review for the quarter ending March is not required in view of the Annual Review for the year ending March prescribed below;

5.3 Annual Review of Frauds

5.3.1 Banks should conduct an annual review of the frauds and place a note before the Board of Directors for information. The review for the year ended March may be placed before the Board before the end of next quarter. i.e. for the quarter ended June 30th.

Yours faithfully,

(A. Udgata)
Chief General Manager in- charge

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions