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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Latest Circulars »
 RBI-Customer Service provided by agency banks
 RBI-Control measures for ATMs – Timeline for compliance
 RBI releases Draft Directions on requirement of Legal Entity Identifier Code for participation in non-derivative markets
 Liberalised Remittance Scheme – Harmonisation of Data and Definitions
  RBI - Auction of Government o India Dated Securities
  Investment by Foreign Portfolio Investors (FPI) in Debt - Review
 CPE Events 18th May - 23th June 2018
 Basel III Framework on Liquidity Standards - Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure Standards
  Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks – Spreading of MTM losses and creation of Investment Fluctuation Reserve (IFR)
 Change in name of “The Mahanagar Co-operative Bank Limited, Mumbai” to “GS Mahanagar Co-operative Bank Limited, Mumbai” in the Second Schedule to the Reserve Bank of India Act, 1934
 Section 23 of the Banking Regulation Act, 1949 – Branch Authorisation Policy – Left Wing Extremism affected districts – Revised List

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 2018 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