Banks alerted on French Bank fraud

New Delhi, Feb 26 (UNI) The Reserve Bank of India has issued necessary prudential guidelines/instructions to banks following reports that an exceptional bank fraud in French Bank -- Society General (SG) had incurred losses to the extent of 7.2 bilion US dollars, the Government informed the Rajya Sabha.

In his written reply to a question of Mr Sanjay Raut, Minister of State for Finance P K Bansal said the RBI had reported that they were aware of the news reports that the SG had incurred losses on account of unauthorised activities of a rogue dealer. The RBI as part of its supervisory responsibility, he said, collected data on frauds in public sector banks and financial institutions.

They had no information relating to the number of bank frauds on account of unauthorised withdrawal or transfer of funds mostly from long-dormant accounts/illegal fund activities.

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