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RBI clears air on norms to tackle frauds

It includes both deposit-taking and non-deposit-taking NBFCs.

Written by ENS Economic Bureau | Mumbai | Published: March 3, 2012 12:54:48 am

The Reserve Bank of India (RBI) on Friday said that all non-banking financial companies (NBFC)s with asset size of Rs 100 crore and above would follow the same guidelines for monitoring of frauds as commercial banks. It includes both deposit-taking and non-deposit-taking NBFCs.

A frauds monitoring cell (FMC) within RBI,will monitor frauds in commercial banks,financial institutions,primary urban cooperative banks (UCBs),local area banks,NBFCs,etc.

The central bank has decided to issue guidelines to NBFCs (including residuary non-banking companies) on classification of frauds,approach towards monitoring of frauds and reporting requirements.

As per the RBI’s detailed guidelines,the individual cases of frauds involving amount less that Rs 25 lakh may be reported to the respective designated regional offices,whereas individual cases of frauds involving amount of Rs 25 lakh and above may be reported to Reserve Bank of India.

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