Item No.

9: Compliances under RBI Guidelines on fraud

Pursuant to the Master Direction – Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016 issued by
Reserve Bank of India, every case of attempted fraud of Rs. 25 lakh and above shall be reported to the Audit
Committee on quarterly and annual basis for review by the Audit Committee. Further, every fraud of Rs. 1
Crore and above shall be monitored by the Audit Committee on quarterly basis. In this connection, following
are hereby presented for review/noting by the Committee:

S. No. Particulars No. of cases

1 Fraud involving Rs. 1 crore and above during the quarter ended March Nil
31, 2022
2 Number of attempted fraud involving Rs. 25 lakh or more for the quarter 42
ended March 31, 2022
3 Consolidated annual review of attempted fraud involving Rs. 25 lakh or 108*
more for the year ended March 31, 2022
*Including numbers mentioned at point no. 2.

Statement containing details of attempted fraud of Rs. 25 lakh and more for the quarter ended March 31,
2022 is enclosed. The Committee is requested to review the same.
Additional note for annual Review:

I. Effectiveness of new process

i) With onset of Covid restrictions, we had moved a lot of verification to digital mode. We had tied up
with various Fintech companies who validate ITR’s/Banking/KYC and other applicant related
information. The same process continued during this year as well. This has resulted in better TAT for
file processing.
ii) Triggers identified during checks through Fintech applications are routed to FCU for further validation.
iii) Regular trainings are being provided to the FI/FCU/PD vendors, updating them with market trends and
best practices.

II. Trend of cases in Last 3 years

i) In earlier years, rent agreement, ITR and Salary slip frauds were main contributors. By using Fintech
applications like Finfort, we have been able to eliminate instances of ITR frauds. Currently we are
getting frauds due to fake profile setup, rental agreements and Salary document frauds.