Banks need not report attempted frauds of above Rs1 crore to RBI
Mumbai: The Reserve Bank on Thursday asked banks to discontinue the practice of reporting attempted fraud cases involving Rs 1 crore or above to its Fraud Monitoring Cell.
"On a review and as a part of rationalisation of process and procedures ... The practice of reporting attempted fraud cases of Rs 10 million and above to Reserve Bank of India, Fraud Monitoring Cell, Department of Banking Supervision, Central office may be discontinued from the date of the circular," RBI said in a notification today.
However, the banks should continue to place the individual cases involving Rs 1 crore and above before the Audit Committee of its Board, it added.
As per the existing guidelines, banks are required to report cases of attempted fraud, where the likely loss would have been Rs 1 crore or more had the fraud taken place, to the Fraud Monitoring Cell of the RBI within two weeks of the banks coming to know that the attempt to defraud the bank had failed or was foiled.