Reserve Bank of India Issues Revised Master Directions On Fraud Risk Management For Cooperative Banks

The Reserve Bank of India (RBI) has issued revised Master Directions on Fraud Risk Management for Cooperative Banks, emphasizing enhanced governance and control measures to mitigate fraud risks. The directions mandate the establishment of a Fraud Risk Management Committee and stress the adoption of robust internal controls and monitoring mechanisms. Cooperative banks are required to conduct periodic fraud risk assessments and ensure compliance with prescribed reporting and remedial actions. These measures aim to strengthen the resilience of cooperative banks against fraud incidents and safeguard depositor interests.