Frauds - Future approach towards monitoring of frauds in NBFCs

RBI/2015-16/327
DNBR (PD) CC.No.075/03.10.001/2015-16

February 18, 2016

All Deposit taking NBFCs (including RNBCs) and
NBFCs- ND-SI

Madam/ Sir,

Frauds - Future approach towards monitoring of frauds in NBFCs

Please refer to circulars DNBS.PD.CC.No.127/ 03.10.42/2008-09 dated August 14, 2008, DNBS.PD.CC.No.256/03.10.042/2011-12 dated March 02, 2012 andDNBS.PD.CC.No.314/03.10.042/2012-13 dated December 13, 2012 on the captioned subject. It has been decided to revise the threshold for reporting of frauds and submission of quarterly progress reports on frauds to Central Fraud Monitoring Cell, Reserve Bank of India, Department of Banking Supervision, from ₹ 25 lakh as on date to ₹ 1 crore with immediate effect.

2. As regard reporting of frauds and submission of quarterly progress reports on frauds below the revised threshold, NBFCs will have to furnish the same to the Regional Office of Reserve Bank of India, Department of Non-Banking Supervision under whose jurisdiction the Registered Office of the NBFC falls.

3. All other instructions contained in the above mentioned circulars continue to remain in effect.

Yours faithfully

(C.D. Srinivasan)
Chief General Manager