Framework for timely detection, reporting etc. relating to large value Frauds – CVC Circular No. 02/04/25 dated 01.04.2025

CENTRAL VIGILANCE COMMISSION

Satarkta Bhawan, G.P.O. Complex,
Block A, INA, New Delhi-10023
No…024/VGH/160
Dated 01.04.2025

Circular No, 02/04/25

Subject: Framework for timely detection, reporting etc. relating to large value Frauds-reg.

Attention is invited to Para 8.13.2 of Chapter VIII of Central Vigilance Commission’s Vigilance Manual 2021, in which instructions issued by D/o Financial Services (DFS), vide their letter no. 4/5/2014-Vig. dated 13.05.2015 are referred as part of guidelines for “reporting of large value frauds by banks”.

2. Later on, Reserve Bank of India (RBI) vide their letter no. RBI/DOS/2024-25/119 DOS.CO.FMG.SEC.No.6/23.04.001/2024-25 dated 15.07.2024 issued updated ‘Master Directions on Fraud Risk Management in Commercial Banks and All India Financial Institutions’. Taking note of the same, DFS issued letter no. 4/5/2014-Vig. dated 16.08.2024 (copy enclosed), withdrawing its earlier instructions contained in letter no. 4/5/2014-Vig. dated 13.05.2015 and all subsequent instruction related thereto.

3. In view of the preceding paras, Para 8.13.2 of Central Vigilance Commission’s Vigilance Manual-2021 also stands amended and may be read as follows:

“ for reporting of large value frauds by Public Sector Banks, Regional Rural Banks and All India Financial Institutions, the instructions contained in RBI’s updated Master Directions on Fraud Risk Management in Commercial Banks and All India Financial Institutions’ issued vide their letter no. RBI/DOS/2024-25/119 DOS.CO.FMG.SEC.No.6/23.04.001/2024-25 dated 15.07.2024, may be followed in letter and spirit.”

4. It may be noted for compliance.

Sd/-
(Arvind Kumar)
Officer on Special Duty

Encl: As above.