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<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> <html xmlns="http://www.w3.org/1999/xhtml"> <head> </head>  <body> <div style="font-family:Verdana, Geneva, sans-serif; font-size:12px; text-align:justify"> <table width="800" border="0" style="border:1px solid #ccc;padding:5px;" align="center" cellpadding="6" cellspacing="0">  <tr>   <td align="left" valign="top">   <br />   Reserve Bank of India <br /><br /> Provisioning pertaining to Fraud Accounts<br /><br /> MANU/RMIC/0065/2016 - (18 Apr 2016)<br /><br />  </td>  </tr>    <tr>   <td align="left" valign="top"></td>  </tr>    <tr>   <td align="left" valign="top" style="background-color:#FDEDCE"><strong>Reserve Bank of India notified amendments to provisions in respect of Fraud Accounts. Banks making good amounts upon detection of fraud can adjust financial collateral eligible under Basel III Capital Regulations - Capital Charge for Credit Risk (Standardised Risk). Adjustments can be made over a period of four quarters, to not adversely affect quarterly profit and loss. If banks choose to adjust the fraud over a period spanning two to four quarters, all not falling under the same financial year, they should debit ‘other reserves’ by the amount being carried over to the subsequent financial year.</strong></td>  </tr>  <tr>   <td align="left" valign="top" ><strong>Relevant : Provisioning pertaining to Fraud Accounts <manuid>MANU/RMIC/0132/2015</manuid></strong></td>  </tr>   <tr>   <td align="left" valign="top" ><strong>Tags : fraud accounts, banks, adjustment, profit and loss</strong></td>  </tr> <tr>   <td align="left" valign="top">&nbsp;</td>  </tr>  <tr>      <td align="left" valign="top"><strong>Source : newsroom.manupatra.com</strong></td>  </tr> <tr>   <td align="left" valign="top">&nbsp;</td>  </tr>  <tr>   <td align="left" valign="top">Regards</td>  </tr>  <tr>   <td align="left" valign="top">Team Manupatra</td>  </tr>  <tr>   <td align="left" valign="top">&nbsp;</td>  </tr>   </table> </div> </body> </html>