RBI may monitor only large value Bank frauds

The Reserve Bank of India (RBI) is considering a proposal to monitor only large value frauds in banks, which have systemic implications. The proposal says RBI should monitor frauds of Rs 1 crore and above only against the present limit of Rs 5 lakhs.

‘‘This recommendation came from an internal committee and the issue is being examined by the department of banking supervision (DBS). With increasing incidence of frauds in banks, there is a need for focused attention on monitoring of large value frauds with systemic implications,’’ a senior RBI official said.

The committee has further recommended that frauds of Rs 1 crore to Rs 5 crore should be monitored at RBI’s regional office level and those above this limit should be reported to DBS at the RBI’s central office.