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ARTICLE · 23 MAY 2016

Amended Provisions Pertaining To Fraud Accounts

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The Reserve Bank of India vide its notification dated 18.04.2016 reviewed an earlier notification DBR.No.BP. BC.83/21.04.048/2014-2015 dated 01.04.2015 and issued amended provisioning norms...

IndiaFinance and Banking
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The Reserve Bank of India vide its notification dated 18.04.2016 reviewed an earlier notification DBR.No.BP. BC.83/21.04.048/2014-2015 dated 01.04.2015 and issued amended provisioning norms with respect to accounts declared as Fraud Accounts to all scheduled commercial banks except the regional rural banks.

The detailed guidelines for provisions pertaining to Fraud Accounts are as under:-

  1. The amount due to the banks or for which the bank is liable (including the case of deposit accounts) should be provided immediately after the fraud is detected and any financial collateral adjustments with regard to basel iii capital regulations shall be adjusted with regard to the fraud accounts.

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