Kerala High Court Sets Aside Order Transferring School Playground, Citing Inadequate Consideration || Delhi High Court Directs Removal of Unauthorised Vendors, Declares Nehru Place a No-Vending Zone || Kerala High Court: SHO Cannot Order Surrender of Firearms over Phone Calls Before Elections || Kerala High Court: SHO Cannot Order Surrender of Firearms over Phone Calls Before Elections || Chhattisgarh HC Refuses Bail to Aide of Former Congress Treasurer in ?540 Crore Coal Levy Case || Kerala HC Rejects Plea Against Appointment of VS Achuthanandan’s Son as IHRD Director-In-Charge || Rajasthan HC: Transgender Bill May Make Gender Identity Rights Dependent on State Approval || J&K&L HC: Bail is Not Absolute For Juveniles in Heinous Cases and Can be Denied to Serve Justice || Delhi HC: Expired Driving Licenses Do Not Enjoy Deemed Continuity After 2019 MV Act Amendment || MP High Court: Ex-Gratia Payments are Dependents’ Last Hope and Rules Should be Applied Liberally

Provisioning pertaining to Fraud Accounts- (Reserve Bank of India) (18 Apr 2016)

MANU/RMIC/0065/2016

Banking

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.

Relevant : Provisioning pertaining to Fraud Accounts MANU/RMIC/0132/2015

Tags : FRAUD ACCOUNTS BANKS ADJUSTMENT PROFIT AND LOSS

Share :