The Reserve Bank of India (RBI) on July 15, 2024, issued the Master Directions on Fraud Risk Management in Urban Cooperative Banks (UCBs)/State Cooperative Banks (StCBs)/Central Cooperative Banks (CCBs).
The following has been stated namely: -
• These Directions shall supersede the earlier directions on the subject, namely, ‘Master Circular– ‘Classification and Reporting’
• The provisions of these Directions shall apply to all Primary (Urban) Cooperative Banks (UCBs) and Rural Cooperative Banks i.e. State Cooperative Banks (StCBs) and Central Cooperative Banks (CCBs) licensed or permitted to carry on banking business in India by the Reserve Bank of India. Such Cooperative Banks shall hereinafter collectively be referred to as ‘Cooperative Banks’ for the purpose of these Directions
• These Directions are issued with a view to providing a framework to Cooperative Banks for prevention, early detection, and timely reporting of incidents of fraud to Law Enforcement Agencies (LEAs), Reserve Bank of India (RBI), and NABARD and dissemination of information by RBI and matters connected therewith or incidental thereto.
[Notification No. RBI/2024-25/119]
