Supreme Court: Appellate Courts Cannot Overturn Trial Court Verdicts Without Independent Reasons || Supreme Court Acquits Three Men in 1979 Murder Case, Finding Serious Flaws in the Prosecution Case || Supreme Court: Magistrate Cannot Order Filing of Chargesheet After Police Submit Closure Report || Supreme Court: Landowners Cannot Claim Denial of Hearing After Failing to Avail the Opportunity || Supreme Court: Property in Sale Deed Cannot Be Altered by Rectification Without Transferor's Consent || Ahead of Rath Yatra, Orissa High Court Stays Release of 'Mahaprabhu Jagannath' Over Peace Concerns || Gujarat High Court: Ancient Hindu Law Did Not Recognise Adoption of Girls Before HAMA || Bombay High Court Orders DGP to Assess CCTV Systems and Footage Preservation at Police Stations || Allahabad HC: Mother Receiving Maintenance from Real Son Cannot Claim it from Step-Son || CCPA Imposes Rs.1 Lakh Penalty on SpiceJet Over Dark Patterns Used for Loyalty Programme Consent

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 :