Home › Circulars › RBI/2006-2007/328

Protected Disclosures Scheme for Pvt & Foreign Banks

Current & verified — this is the latest version

Source: Reserve Bank of India · RBI/2006-2007/328 · issued 18 Apr 2007 · ~1 min read

Quick answerRBI introduces a whistleblower scheme for private and foreign banks, mirroring the CVC framework for public sector. Banks must implement the policy to receive and act on corruption or misuse-of-office complaints from employees.

The rule, in the simplest words

Private and foreign banks must set up a way for employees to report cheating or misuse of power by bosses, and protect those who report.
The RBI's new rule is like the one for government banks, but now it applies to private and foreign banks too.
Banks must tell all workers about this reporting system and promise not to punish anyone who reports a problem.
Each bank must pick a special officer or team to handle these reports and keep them secret.

How it plays out — a real example

A branch operations officer in Indore notices her branch manager is taking bribes to approve loans. She remembers the bank's new whistleblower policy and files a confidential report to the designated officer. The officer investigates, stops the misuse, and the officer is protected from any retaliation by her manager.

What changed

RBI has finalized and implemented a Protected Disclosures Scheme for private sector and foreign banks, effective immediately. This extends whistleblower protections similar to those already applicable to public sector banks under the Central Vigilance Commission's mandate.

What it means for you

Private and foreign banks must now establish internal mechanisms to handle whistleblower complaints regarding corruption or misuse of office. Banks need to align their policies with the RBI scheme, which could increase compliance and reporting obligations.

What you must do

Review the detailed scheme in the Annex to the circular and ensure your bank's whistleblower policy is compliant.
Designate an internal officer or committee to receive and process protected disclosures.
Communicate the scheme to all employees and ensure confidentiality and protection against retaliation.
Acknowledge receipt of the circular to RBI as instructed.

Who it affects

All private sector banks operating in India, All foreign banks operating in India, Compliance and HR departments of these banks

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 17:21 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the purpose of this scheme?

To provide a formal channel for employees of private and foreign banks to report corruption or misuse of office, with protection from retaliation, similar to the CVC scheme for public sector.

When does this scheme take effect?

The scheme is effective immediately from the date of the circular, April 18, 2007.

Are public sector banks covered by this circular?

No, this circular applies only to private sector and foreign banks. Public sector banks are already covered under the Government of India's resolution authorizing the CVC.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #183: DO.DBS.FrMC.No.BC.5/23.02.011/2006-07 — "Introduction of 'Protected Disclosures Scheme for Private Sector and Foreign banks'" dated April 18, 2007”

📜 Read the original circular — full text as issued by RBI

RBI/2006-2007/328 
 DO DBS .FrMC No. BC 5 /23.02.011 /2006-07
 April 18, 2007
 All Private Sector and Foreign Banks operating in India
 Introduction of ‘Protected Disclosures Scheme 
 for Private Sector and Foreign banks' 
 The Government of India, vide its Resolution dated April 21, 2004 had authorized the Central Vigilance Commission (CVC) as the 'Designated Agency' to receive written complaints for disclosure on any allegation of corruption or misuse of office by any employee of the Central Government or of any corporation established by or under any Central Act, Government companies, societies or local authorities owned or controlled by the Central 
 Government and recommend appropriate action. 

 2. The Resolution mentioned above is applicable to Central Government and Public Sector enterprises including Public Sector Banks. As private sector and foreign banks are not covered by the above resolution, RBI proposed to introduce a similar scheme for these banks. The draft of the scheme was placed on the website of Reserve Bank on January 25, 2006 inviting suggestions from all concerned, including members of public. After considering all the suggestions received by RBI, the scheme has since been finalized and it has been decided to implement the same with immediate effect. Details of the scheme are furnished in the Annex . All the private sector and foreign banks operating in India are requested to take necessary action in this regard.

 3. Please acknowledge receipt.
 Yours faithfully
 (S V Raghavan) 
 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/328 · issued 18 Apr 2007. The plain-English explanation above is BankPulse’s own independent summary.

🧰 Tools — save, print, templates & related

Most relevant forCompliance Team Senior Management / Board Internal Audit Business Head / Vertical Head

🛠 Banker’s toolkit — checklists & reply templates →

Related circulars · Supervision

Revised Auditor Remuneration for Public Sector Banks from FY 2006-07 RBI Mandates Business Continuity Plans for All Banks OSMOS Returns Filing Deadlines Tightened Effective Quarter Ending June 2005 Fraud Classification and Reporting: 2005 Master Circular Revised Annual Reporting for Non-SSI Sick/Weak Units (Effective from period ending March 31, 2006)

Browse all departments →

Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All private sector banks operating in India, All foreign banks operating in India, Compliance and HR departments of these banks), your first concrete step on “Protected Disclosures Scheme for Pvt & Foreign Banks” is: “Review the detailed scheme in the Annex to the circular and ensure your bank's whistleblower policy is compliant.” (RBI issued this 18 Apr 2007).

Circular: RBI/2006-2007/328 -- Protected Disclosures Scheme for Pvt & Foreign Banks
Issued: 18 Apr 2007
Action required: Review the detailed scheme in the Annex to the circular and ensure your bank's whistleblower policy is compliant.
Action required: Designate an internal officer or committee to receive and process protected disclosures.
Action required: Communicate the scheme to all employees and ensure confidentiality and protection against retaliation.
Action required: Acknowledge receipt of the circular to RBI as instructed.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________

Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…

BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3427&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.