RBI puts in place new mechanism for banks to check loan fraud


  • The RBI put in place a new framework to check loan fraud including by way of early warning signals at banks and red flagging of accounts, while swindlers will have no access to further banking finance.
  • The central bank will set up a Central Fraud Registry that can be accessed by all banks to identify borrowers having committed frauds with any bank in the past.
  • The CBI and the Central Economic Intelligence Bureau (CEIB) will also share their databases with banks.
  •  he concept of a Red Flagged Account (RFA) is being introduced in the current framework as an important step in fraud risk control.



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