Fraud Detection By Banks: RBI has made 42 Early Warning Signals for banks to identify frauds so that banks can get information about any type of financial fraud immediately. Despite this, do you know how much time does it take for banks to detect any financial fraud where they have happened? The government has told the Parliament that banks come to know about the fraud committed by them on an average at least 23 months after the date of fraud.
question asked in parliament
In fact, in the Rajya Sabha, a member of the House, Amar Patnaik, asked the government that what is the average time between the occurrence of fraud in banks and financial institutions and detection of that incident? He also asked the government that what is the average time interval for the occurrence and detection of a major fraud of more than Rs 100 crore?
After 5 years, it is found that fraud of more than 100 crores
Responding to this query, Minister of State for Finance Bhagwat Karad said that as per RBI’s Annual Report for 2020-21, the average time gap between the date of occurrence of fraud reported and the date of detection of fraud in the financial year 2020-21 is 23 months. Was. The Minister of State for Finance said that the date of fraud of more than Rs 100 crore and fraud is detected after 57 months on an average i.e. after about 5 years.
RBI guidelines for early fraud detection
Regarding RBI’s Early Warning Signals to detect frauds in banks, Bhagwat Karad said that RBI has provided this list of master instructions to banks so that any fraud can be detected in advance. Banks have been asked to make Early Warning Signals based on their experience, customer profile, business model. RBI also supervises these frameworks of banks.
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