Looking to check banking fraud, the RBI has directed banks to report fraud cases of between Rs 1 lakh and Rs 50 lakh to the regional office of the Department of Banking Supervision.

"Fraud cases involving an amount more than Rs 1 lakh and up to Rs 50 lakh... (should be reported) to the R.O. (regional office) under whose jurisdiction the branch where the fraud has taken place is located," the RBI said in a circular.

Such instances should also be reported to the regional office of the Department of Banking Supervision that administers to the head office of the bank where the fraud has taken place.

However, in case the bank falls under the supervision of the Financial Conglomerate Monitoring Division (FCMD), the fraud report should be submitted to the FCMD, which comes under the Department of Banking Supervision, it said.

The FCMD under the Department of Banking Supervision monitors 12 large banks, namely SBI, ICICI Bank, Canara Bank, Punjab National Bank, Bank of Baroda, Bank of India, Axis Bank, HDFC Bank, Kotak Mahindra Bank, Citi Bank, HSBC and Standard Chartered Bank.

With regard to fraud cases involving amounts of Rs 50 lakh and above, banks need to only report to the regional office under whose jurisdiction the branch where the fraud has taken place is located.

In the case of the banks under FCMD, the fraud case will be reported to Department of Banking Supervision.

The central bank's latest notification comes a few months after it directed public sector lenders to promptly report cases of cheating involving Rs 1 crore and above to the CBI and of lesser amounts to the police. (PTI)