RBI to penalise banks in case of delay in reporting frauds
The bank will have to make full provisions at one go if the delay in reporting happened, said RBI
Mumbai: The Reserve Bank of India (RBI) on Wednesday said the central bank may initiate supervisory action if a bank fails to report a fraud beyond a prescribed period and the bank will have to make full provisions at one go if the delay in reporting happened.
In the normal course of reporting a fraud, a bank will have to set aside the full amount as provision within four quarters, RBI said.
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