More steps in the offing for timely fraud detection in banks: RBI

There is a need for timely recognition and reporting to reduce their economic costs and to address the vulnerabilities in a proactive and timely manner, RBI said in its Financial Stability Report

Concerned about surge in frauds in banks due to legacy cases, the Reserve Bank of India (RBI) will prescribe additional measures for timely detection of embezzlements and enforcement action against violations.  

According to the Financial Stability Report (FSR) released on Thursday, the RBI is reviewing its master direction on frauds. The increased number of reported incidents of frauds in recent years is being attributed to the prevalence of legacy cases, particularly in public sector banks (PSBs).

There is a need for timely recognition and reporting to reduce their economic costs and to address the vulnerabilities in a proactive and timely