21 November 2022


Notifications & Circulars

Reserve Bank of India

18.04.2016

Banking

Provisioning pertaining to Fraud Accounts

MANU/RMIC/0065/2016

Reserve Bank of India notified amendments to provisions in respect of Fraud Accounts. Banks making good amounts upon detection of fraud can adjust financial collateral eligible under Basel III Capital Regulations - Capital Charge for Credit Risk (Standardised Risk). Adjustments can be made over a period of four quarters, to not adversely affect quarterly profit and loss. If banks choose to adjust the fraud over a period spanning two to four quarters, all not falling under the same financial year, they should debit ‘other reserves’ by the amount being carried over to the subsequent financial year.

Relevant

Provisioning pertaining to Fraud Accounts MANU/RMIC/0132/2015

Tags : fraud accounts banks adjustment profit and loss

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