Master Directions on Fraud Risk Management for the Regulated Entities has been issued by the RBI.
These master directions on Fraud Risk Management will be applicable to Commercial Banks (including Regional Rural Banks) and All India Financial Institutions; Cooperative Banks(Urban Cooperative Banks / State Cooperative Banks / Central Cooperative Banks); and Non-Banking Finance Companies (including Housing Finance Companies).
Based on the review of the earlier Master Directions, Circular and emerging issues, these Master Directions have been prepared.
These Master direction are principle-based and will enhance the role of Board in governance.
These Directions has also emphasized the need for instituting robust internal audit and controls framework in the REs.
