Banks have asked the Reserve Bank of India (RBI) for a relaxation in the rules on reporting loan frauds, reasoning that the existing norms are too stringent. They have sought a month’s time for reporting loan frauds to the RBI as opposed to the current seven days. Banks need to make full provisions once an account is classified as fraudulent.
“The issue was discussed in a meeting last month. We have suggested to the RBI that instead of one week, the reporting time should be increased to around a month,” said a senior bank executive aware of the development. Under the existing framework, lenders need to report fraud to the RBI’s Central Repository of Information on Large Credits (CRILC) within a week of the joint lenders’ forum (JLF) declaring an account fraudulent.
Leave a Reply