Delhi High Court: Assets From Illegal Cricket Betting are Proceeds of Crime Attachable by ED || Delhi HC: Extension to Issue SCN U/S 110 of The Customs Act Must be Granted Before Six Months Expire || Delhi HC: Statements to Customs under Section 108 During Goods Seizure Aren't Admissible As Evidence || Delhi HC: Oral Waiver of a Show-Cause Notice is Invalid And Continued Detention of Goods is Unlawful || Supreme Court: Letter of Intent is a 'Promise in Embryo', Rights Arise Only After Conditions Met || SC Auction Sale under Order XXI Rule 90 CPC Cannot Be Challenged on Pre-Proclamation Grounds || NCLT Kochi: CoC May Invite Fresh Bids, Regulations Only Restrict Alteration of Existing Bids || Chhattisgarh HC: Father Must Provide Maintenance and Marriage Expenses to Unmarried Adult Daughter || Delhi HC Rules That ‘Hermès’ and the 3D Shape of its ‘Birkin’ Bag are Well-Known Trademarks in India || Kerala HC: Arrest is Illegal if Accused isn’t Produced in 24 Hours and Rearrest From Prison is Barred

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 :