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The Reserve Bank of India’s Master Circular (dated July 1, 2009) provides guidelines for detecting, reporting, and managing frauds in commercial banks and financial institutions. Key provisions include:

• Mandatory reporting of frauds of ₹1 lakh and above to the RBI.
• Detailed reporting for frauds over ₹1 crore to RBI, CBI, or other authorities.
• Quarterly and annual fraud reports are required.
• Banks must assess staff accountability and strengthen internal controls.
• A special committee should monitor major frauds (₹1 crore+).

The circular aims to enhance transparency and strengthen fraud prevention in the banking sector.