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Saileshsailesh asked 1 year ago
2 Answers
RaviRavi Staff answered 1 year ago

Yes Shailesh answer should be “C” it is typo error, being first edition and with limited time our team had some mistakes like this are possible please feel free to post all of them here, i will clarify on each of them.

below is text for the same matter
Classification of Frauds by NBFC (RBI Circular July 2015)
In order to have uniformity in reporting, frauds have been classified as under based mainly on the provisions of the Indian Penal Code:
a. Misappropriation and criminal breach of trust.
b.Negligence and cash shortages.
c.Fraudulent encashment through forged instruments, manipulation of books of account or through fictitious accounts and conversion of property.
d.Unauthorized credit facilities extended for reward or for illegal gratification.
e.Cheating and forgery.
f.Irregularities in foreign exchange
g.Any other type of fraud not coming under the specific heads as above.
Cases of ‘negligence and cash shortages’ and ‘irregularities in foreign exchange transactions’ referred to in items (b) and (f) above are to be reported as fraud if the intention to cheat/ defraud is suspected/ proved. However, the following cases where fraudulent intention is not suspected/ proved, at the time of detection, will be treated as fraud and reported accordingly:
(a) cases of cash shortages more than Rs 10,000/- and
(b) cases of cash shortages more than Rs 5000/- if detected by management/ auditor/ inspecting officer and not reported on the occurrence by the persons handling cash.
NBFCs having overseas branches/offices should report all frauds perpetrated at such branches/offices also to the Reserve Bank as per the prescribed format and procedures.

Saileshsailesh answered 1 year ago

Thank you sir

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