Policy ID: PCI/POL/28/2026-27 • Version 1.0 Owner: Fraud Risk Officer / Board Committee • Approver: Board of Directors Sources: FRD, KYC, TECH • Review: Annual / regulatory change
Purpose and application
2026 fraud Directions: Upper/Middle Layer and Base Layer with assets ₹500 crore or more; smaller entities adopt proportionate controls.
1. Prevention and detection:- Verify identity, income, employment/business and collateral independently. Use maker- checker and beneficiary controls. Monitor fake documents, duplicate collateral, related- borrower clusters, fund diversion and staff override patterns. Protect whistleblowers.
2. Incident handling:- Escalate suspicion immediately to the fraud officer; preserve logs/documents and restrict access where lawful. Commission an independent investigation with conflict- free staff. Record occurrence, detection and classification dates separately; suspicion is not a concluded fraud finding.
3. Natural justice:- Before fraud classification, serve a detailed show-cause notice with transactions/events relied upon and give at least 21 days to respond. Evaluate submissions and serve a reasoned order under the applicable Directions. Investigation shall not be used as an automatic denial of hearing.
4. Oversight and reporting:- Constitute the required Board committee/eligible executive alternative and designate a senior fraud officer. Report to law enforcement and RBI/NHB under applicable deadlines/forms. A settlement or sale shall not erase reporting or criminal accountability.
5. Remediation:- Investigate staff accountability, recover losses lawfully and strengthen controls. Track regulatory case updates and closure criteria. Board shall receive quarterly incident/ root-cause reports as Company practice and review this policy annually.
Source codes are linked to the Reference Register. Read with the common implementation controls and relevant annexes. Applicable law and RBI Directions prevail.